Text: Kathi Clarke. Article from Your Business Magazine.
Over the next six issues, we’ll take you through the steps to building a successful business and maximising the return on your effort…
South Africa is still pushing through an “economic winter” and many businesses are battling as a result. The science and art of building a business that survives – and yes, even thrives – in these conditions can, however, be taught. It all starts with you; make sure that while you build your business, everything you do is done well, or at the very least better than your competition. Building a bigger, better business, starts with a bigger, better you.
Will I ever get the life I envisaged?
Many business owners start their ventures because they are great at what they do. However, your talent or technical ability is just one part of a successful operation. Learning how to sell what you do and hiring the right people to do the job for you are two key tasks that you will need to master.
Many would-be entrepreneurs startup because they think business ownership means they will have plenty of free time and earn a lot more than employment allows them. But during the start-up stage, when money and time is tight, you will find yourself juggling a variety of tasks. Before long, you will no doubt also find yourself working longer and harder than you have ever done before. The struggle of coping with day-to-day operations and paying the bills on time soon overshadows the dream of free time and wealth.
What if something happens to me?
What keeps many business owners awake at night is the worrying thought of what will happen to the business if they fall ill. At the heart of this question is the hard reality that the majority of registered small business owners in South Africa are actually “job owners” without whom the business ceases to exist. This means that they don’t actually own what would be classified as a business, i.e. a commercial, profitable enterprise that works without its owner. Instead, you are self-employed. If anything happens to you, the business won’t last. And this is what makes the early stages and the processes you put in place so important.
You don’t have to be sick to get better
At the other end of the scale we have the successful business owners who are generating a healthy profit, employing a dream team, dominating markets nationally and internationally – and making a grand contribution to the country’s GDP. While this is cause for celebration, remember you don’t have to be sick to get better. Consider your legacy and the impact your business can make on society as a whole. Struggling SMEs need to learn the art of survival, while successful SMEs need to stretch themselves and embrace their full potential if we have any hope of impacting our economy for the better.
Building a great business happens on purpose
Building a successful business is a purposeful task and while it is not easy it can be simple, and a few good habits and strategies consistently applied can make a real difference. It’s not so much knowing what needs to be done; it’s more a case of what you do with what you know. It will take time, thought and energy, but with the right tools and guidance it’s very possible to prosper.
Two rules of engagement for success
1. Test and measure:
You can’t fix what you don’t know, so building a business capable of thriving in any economic season relies on great measurement. Understanding what has worked and what has not – and why – are critical to growth. Key metrics are mandatory.
2. Adopt an investment mentality:
Penny-pinching when it comes to matters that will yield a great return on investment won’t cut it in business. As the age-old saying goes: you have to spend money to make money. Yes, letting go of your hard-earned cash can be daunting. But if you adopt an investment mentality and keep the long-term picture in mind, you’ll find it easier to make the right decisions about where to spend your money and time. Plan well, avoid waste and always demand value.
Six steps to massive results
In the next six issues of Your Business, we will take you through the steps to building a successful business. We will look at how to establish a great foundation and develop an “unfair advantage” over your competitors by creating a niche for your goods and services – you don’t need to compete on price alone.
We’ll consider how you can do more with less and what leverage looks like through an entrepreneurial lens. We’ll wrestle with how to build a winning team and unpack some of the keys to great leadership to ensure that you don’t have to continue doing everything yourself.
We’ll wrap the series up by looking at how to exit well, whether by selling up, bringing a GM in or duplicating your winning formula by franchising.
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