Are you sure the director? 8 signs your business will take off

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Good business is based on a good idea. But it alone is not enough: an entrepreneur has a long way to go before being successful. Together, we figured out what a businessman needs to make his company flourish.

1. You have found your competitive advantage

The idea may seem unique to you, but most likely there have already been entrepreneurs before you who have tried to do something similar. An analysis of the achievements and mistakes of predecessors will help you formulate a simple and clear explanation of what consumer problem the product solves and how it differs from other brands' offerings.

You can use a value proposition template to find out what your prospective customers want. It is a scheme that helps the entrepreneur to put himself in the shoes of the buyer and sort out his thoughts and feelings. The businessman has to understand how the product is useful for the client, what tasks it helps to solve and how to push the consumer to buy.

A value proposition is not just an inspirational slogan out of touch with reality. It is important to rely on facts and speak in a language that the buyer understands. For example, if you are opening an eco-goods store, tell them that you choose cosmetics and products based on the composition and expiration date, and make sure that the goods are in recyclable packaging.

2. You are serious about selling

A business is unthinkable without sales, but for the success of a business it is not enough to sell at least somehow. Use modern tools: CRM-systems, IP-telephony, platforms for email-mailings.

A CRM system will help you assess how many potential customers you have and what is the specificity of each. It will be easier for you to control the work of managers and build a sales funnel - the path that a client goes through before purchasing a product or service. This way you can subtly stimulate the customer's interest in the product.

Add sales scripts. With them, employees will not have to re-invent typical conversations every time they call potential buyers cold. Sales professionals will know exactly what to do and when, and will be able to provide clear answers to customer questions.

If you are making an innovative product, do not delay entering the market - start selling as soon as the test version is ready. This will allow you to assess the needs of users and get feedback.

3. You are in charge of financial planning

A financial plan is needed to calculate a positive balance between income and expenses, at which it makes sense to do business. It allows you to account for cash flow and ensure the smooth operation of all business processes for profit. It is necessary to take into account profit and costs at all stages of business development, even at the start.

With the help of a financial plan, you can understand how much money needs to be invested in starting a business, how much investment to attract and where to send money in general. Do not forget to include in it the taxes to be paid at the end of the calendar year.

Keeping track of how much money is spent on developing your business is easier if you have a separate card. For example, it is tied to a company account - so there is no risk that you get confused about where personal money is, and where is business funds. With the help of this card, you can pay with suppliers, make large and small purchases, pay for business and travel expenses. And in order not to be distracted by the next payment, set up automatic payment: it is convenient to pay for taxi rides, mobile communications and other regular services with a Mastercard business card.

The program allows owners of Mastercard business cards not only to carry out the necessary financial transactions, but also to accumulate bonuses for purchases. They can be exchanged for offers from partners. For example, for two bonuses, Yandex. Business gives a discount on the first launch of an advertising subscription, and the upSWOT service provides access to an analytical platform for small and medium-sized businesses that helps to collect, analyze and predict financial performance.

4. You know your client

You can come up with an ingenious product, but fail because there were no customers who are willing to pay for it. This is one of the main reasons startups fail - there is simply no need in the market for what they do. In order not to waste time and money in vain, do not be lazy to carry out custom development, that is, to receive feedback from potential consumers. You can collect feedback already at the idea stage. For example, Dropbox started sending out demo videos about a product even before it was even born. This helped not only to get positive ratings, but also to attract investors.

To understand whether a product will be in demand, it is not enough to ask your friends' opinions - they will certainly support you in any endeavors. Find out what your target audience thinks. For example, if you are making an educational application for teenagers, then you need to conduct interviews with them, teachers and parents.

5. You have built a strong team

“Great things in business are never done alone, they are done by a team,” said Steve Jobs. When people share experiences and knowledge, they can cope with difficult problems and find creative ways to solve problems. Like-minded people will support you in difficult times and help you realize your ideas.

The team does not always need stars - sometimes there are enough "good people" who will take a responsible approach to work and effectively interact with each other. Be sure to think about the interchangeability of team members. There should not be situations when everything is kept on one person. He can go on vacation or quit, and then the job will stop.

Try to have employees of different gender, age, worldview and culture on the team. By giving everyone a unique experience, they can come up with more creative ideas and make the Diversity wins: How inclusion matters / McKinsey business more profitable.

6. You are ready to change

Businesses need to be able to adapt to changing reality. Last year, for example, many companies switched to remote work - they had to build new business processes very quickly. But, in addition to difficulties, new opportunities have appeared, for example, you can hire employees anywhere in the world.

Changes are needed not only in times of global crises. Many well-known companies drastically changed their business model, because the previous one did not bring profit and attracted few customers. For example, YouTube was once a video dating service, and the founders of Android planned to create an operating system for cameras. Changing direction can seem like a waste of money. But in reality, abandoning a failed idea saves money that you would spend on creating a hopeless product. To find new opportunities for development, you need to decide on time to make changes.

7. You are optimistic

Entrepreneurship involves constant risk, and the chances of success are frustratingly low. Statistically, 9 out of 10 startups fail, and only 1 in 100 becomes a unicorn company with a valuation of over $ 1 billion.

Traditional business is less risky, because there are ready-made and already proven schemes of work, but this does not guarantee that everything will be easy and simple. This is why the optimism of the founder is important. It gives rise to a propensity for action Optimism, coping, and health: Assessment and implications of generalized outcome expectancies / APA. People who think about the future in an optimistic way are able to generate ideas on how to make dreams come true. In business, this kind of thinking will help you come up with new products and find new customers.

eight. You manage your funds efficiently

While the first success can be dizzying, it is important to maintain your sanity and spend your money wisely. A good entrepreneur constantly invests in the development of the company, but knows how to resist the temptation. For example, he will not move into an expensive office just to amuse his vanity.

Also, an entrepreneur needs to form a financial reserve of the company, which will allow it to survive difficult times. To accumulate money, you need to regularly set aside a certain amount of net profit - for example, 10-15%. The reserve fund will help businesses to withstand serious problems like a crisis, calm in the market or a pandemic.

Convenient financial instruments will help reduce business expenses. According to the program, each purchase over 500 rubles paid with a Mastercard business card will bring one bonus, and for registering this card you will receive 15 bonuses as a gift.

Bonuses can be exchanged for discounts and offers from partners. For example, for two bonuses, you will receive a 70% discount for a month of working with the Ecwid service, which allows you to create an online store without programming skills. Another two bonuses will cost the activation and setup of an online cash register from MTS, the same is the discount for the services of the Finguru accounting service, and for Mastercard clients, Finguru has a special offer - access for 30 days to professional online accounting consultations.