Maintaining a solid growth rate for a new business is the goal of most prudent businessmen. The Small Business Administration indicatess that only about half of businesses survive for five years. Creating a business that develops roots and grows in a sustained rate requires several organizational principles and, at times, plain luck. Thomas Jefferson once said, "I'm a great believer in luck, and I find the harder I work, the more I have of it."
Instructions
1. Develop products or services with longevity in mind. The original product does not need this longevity, but you must be able to logically see the next product that will replace it. If you can continuously place products or services at all points of the product life cycle, your growth rate will solidify.
2. Choose a business location with high visibility. You will pay a premium for this visibility, but it will keep your product or service in the forefront of your customers' minds.
3. Involve your business model in service and benevolence. You will better establish your reputation in the community if charity is an outgrowth of your corporate culture. This charity should be constant, not sporadic, such that people associate your business with the charity over time.
4. Establish a defined yet flexible policy manual. Be consistent. Include a communication plan to promote transparency.
5. Require and practice customer service excellence. Excellent customer service builds relationships with customers that drives long-term growth. Poor customer service hurts immediately and long term.
6. Train your staff effectively and regularly. Never stop training, especially on customer service and sales skills. Reward the staff for their continued improvement.
7. Price your product or service correctly. Keep in mind that prices for items in the growth stage can be higher than in the mass production or decline stages. Maximize profit by building a chain of elements encompassing all stages.
8. Manage inventory. Reduce prices or donate excess as applicable. Stagnant inventory costs money and hurts growth.
9. Market your product or service effectively. Be consistent and committed to a long-term marketing plan. Businesses tend to market more when business is good and less when it is poor. Consistent and diverse marketing builds sustainable growth.
10. Use tax law to your advantage. Use tax deductions where possible through dedicated bookkeeping. Take advantage of tax credits and grants for business expansion and equipment.
11. Protect your assets and your inventory. Loss prevention techniques should focus on both external and internal shrinkage. Strong sales and great customer service do not matter if deposits are not made.
12. Evaluate and review your business constantly. Even when business is good, evaluate your processes and employees. Note and promote what works. Remove what does not.
Tags: customer service, product service, your business, your product, your product service