You may have heard that most small businesses fail within 3 years of starting.
Well this can be avoided if you have the following in place in your business. “What are they?” you ask…… Have a look and see if these 10 important aspects of your business are in place:
1. All businesses need a vision. This is vitally important because who will follow you if you cannot clearly tell your employees, financiers and significant others where the business is headed?
2. All visions are both personal and impersonal. These visions are both of the owner and the business itself. If these are not aligned and in harmony with each other there will be problems for one or the other down the road.
3. Every business is an organisation. An organisation means that you have interactions with people both outside the business (customers and suppliers) as well as within the business (staff and contractors). It is important to remember that it takes organisation to make sure that you get the best from all people involved.
4. Every organisation is an organisation of systems. In order to create a synergy between all the aspects of business there should be systems in place that makes it easier for your people to deal with the day to day issues and interaction with customers and suppliers.
5. There is a commitment to the customer. Customer service is not necessarily the most important part but making sure that you keep you word on what you would do in the time frame agreed will keep that customer coming back for more. Keeping your word becomes your brand. If your systems are not set up to ensure that you keep your word then what are you going to do about it?
6. Become a master of the money. Everyone in your business must understand the dynamics that money has on the business. How do sales or lack of it impact on the business?, how efficiently are we making these sales?, what are the implications of spending too much on items that don’t produce those sales? If money is not measured regularly then your business will be facing a crisis over the short to medium term.
7. Your people are not your business. Conversely this is true too. The business has its own reality. It has to have a philosophy whereby its people can get what they want and provide the services that the business needs from them, which is to keep the promise to its customers every single time. The people need to understand this rule and be measured against standards and expectations set.
8. Your business is an idea. It is either a good idea or a bad one. If the latter then you need to get out as soon as possible as there is no point in continuing. This will gradually wear you down and put a strain on your relationships both in and out of business.
9. No-one knows your business like you do. If you can find people who do then you are in the wrong business! You need to inspire, train and coach your people so that they want to know what you know about your business. When your people know as much about your business then only will they be able to improve your business. Until that time they are a negative influence on your business.
10. A business must mean something if it is to make a difference in the world it serves. A business means something when the results it produces makes a difference to the lives of its customers and its people. Therefore businesses are set up so that the results help people achieve their goals and in doing so the business will realise its goals.
These vital sapects of any business will ensure that a business will continue in the long run.