In the days past it was conceived that it was the entrepreneur’s vision that drove a business to success. That vision was more oft than not a highly product-centric idea that was the base for a company’s growth. It was only later that people came to conclusion that the key to success doesn’t solely depend on the idea, but that the entrepreneur’s vision has several important aspects. Only by adhering to these principles can one make success and keep an enterprise on the top.
Base your Decisions on Data
In many ways your business decisions depend on your ability to track data and use it to make those decisions. Yes, it is true that running a business calls for that gut feeling, but your gut can use all the information it can get. Understanding the oscillations of key performance indicators (KPIs) and keeping the track will ultimately give you a basis for making right decisions that will drive your business through hard times.
Cash is the King
Contrary to a popular belief, the number one reason behind the bankruptcy of small businesses is lack of cash, not lack of profits. Besides sound cash planning, it’s important for you to understand the actions that affect your cash. The cash status in your business is affected by a number of levers, like buying inventory, debts collection, the time period in which your debtors pay you, loans that you have to pay back. Many prosperous business owners resort to cloud bookkeeping which provides them with instant reports at any time, from any location.
Listen to your Customers
Another key element of a successful business is that it talks to its customers. If you own a retail store, take time and listen to their needs and preferences. If your business involves online interaction, throw in a few survey questions after they check out, or email your customers a quick survey now and then. People in general like to be asked for their opinion. Invest in a telephone survey and be prepared to hear negative criticism as well. This is the only way you can truly understand how you can make changes that will satisfy your customers and benefit your business.
Develop a Talent-retaining strategy
Make your routine to regularly track talent in your area and invest in attractive programs and benefits for retaining talented employees. Use LinkedIn as a platform for tracking and recruiting talented workforce. It always pays off to establish a company culture. Think about the directions you want the company culture to develop, but also be ready to implement that culture into the HR decisions.
Keep an Online Eye
Even after your working hours, your business remains online. Make sure you deploy online alerts that will help you feel up the market and your competitors. Use free tools like Google Alerts to listen what is being said about your products or services. In the same way, you should be constantly aware of your direct and indirect competitors. The goal is to always be one step ahead of the competition and respond readily to a bad review a customer may give you.