Economists estimate that by the year 2020, the economy will finally recover from the effects of the Great American Recession of 2007 where the US housing bubble burst and global financial crisis plunged the country in dark days. With this in mind, small businesses will have the opportunity to make the next big leap. Startups and small enterprises can take the chance to improve their standing in the industry. By figuring out certain things like how to manage vendors, which contracts to accept and which not to, who to assign certain tasks to, etc. they can easily gain the edge against their competition and stay on top.
It has become a common occurrence for businesses to have lean months and have good months. This is just a natural phenomenon. However, if your business is consistently on the rocks then that is a tell-tale sign that you should internally examine your business strategy and weed out any ineffective aspects.
When it comes to business, staying afloat is one thing. Moving forward is another. What good would it be if your company is regularly just breaking even and cannot stand to scale and grow? If your business is always in this precarious situation, then even a minor disruption in the market will put you in a dire situation.
To effectively run a business, you must always be two to three steps ahead, always forging forward, planning the next course of action. Here are five sure ways on how to effectively run your business.
Stick To The Business Plan…Until The Market Says Don’t
There is a saying that the market is just like the sea, volatile, always changing, dangerous, and most importantly, cannot be captured. Whatever you do, no matter how successful your company has become, you will never be able to dictate the market. You can only influence them. What this means is that you should humble yourself and follow the trends of the market instead of remaining steadfast and stubbornly refusing to get on.
Hundreds of thousands of businesses have died due to their refusal to get on with the times. Perhaps the best example of this would be Blockbuster. The mega-company used to be a global brand with thousands of stores worldwide. Unfortunately, the rise of internet streaming and its exorbitant late fees that they refused to waive spelt its demise.
Reward Your Employees
Many business owners think that any extra expenditure on their employees outside their monthly wages is unnecessary. This is not so. By providing your employees with great benefits, you are boosting the overall morale in the office which multiplies the productivity tenfold. Praise and incentives for a job well done will cost you very little but will result in a lot of good benefits. Regular team-building exercises will not only provide your staff with an avenue to relax but also improve their teamwork and communication.
Trust Technology
It is a well-known fact that there are a lot of things that technology can do so much better than humans and as it turns out, management is one of them. There are now a lot of applications and software available in the market that can replace human agency and provide you with better services.
For example, vendor management software is quite known for helping businesses control their vendor base while also getting a full visual of each vendor’s performance leading to better decision making. A time-tracking software, on the other hand, allows company employees the option to work remotely. If you want to make it big this decade, you need to stop looking at technology as an expensive luxury but as a helpful support to your company
Aim For Customer Satisfaction
When it comes to making business decisions always aim for what will please your customers the most. After all, the point of a company is to satisfy its clientele. Your profits may dip at first but once you’ve gained a loyal customer base, you will understand why it’s important to fulfill all of your customer’s needs and wants. Marketers have also found that a referral by a family member or friend works so much better than advertisements. The only time your customers would refer your brand is if they, themselves, are happy with your product. If not, they won’t stake their name on it.
Track Everything
This might be a troublesome step for most but this is an effective way of determining which aspects in your company are problematic and which ones are working perfectly. For example, tracking your cash flows will allow you to understand your expenditures and whether you should spend more or less. This will also tell you whether you are earning enough to scale your organization.
On the other hand, tracking the performance of your assets (ie. human resources, contracts, vendors) provides you with valuable insights such as who are underperforming and must be laid off and who needs to be rewarded and taken care of more. It might be information overload at first but it is definitely worth in the long run.