In New Zealand it is extremely easy to set up a new business and currently, there are many new start-ups being set up every day as most aspiring entrepreneurs believe it is the best/quickest path to profitability. The reality is, however, that just two out of every ten companies survive the first 18 months of operation. The start-up’s adolescence phase is highly unpredictable for those entrepreneurs who have no prior experience running a company.
There are a variety of reasons that a company will fail early in the company’s life cycle, ranging from unsatisfactory goods and services to bad recruiting practises. Getting a development strategy is crucial to any small business’ future, which is why we’ve collated a list of things you need to be conscious of if you’re trying to take your company to that next level!
1. A Marketing Strategy
A successful marketing strategy is the cornerstone of any enterprise, which can determine the success or failure of your company. But to develop a successful marketing strategy, you need to consider: your direct and indirect competitors modes of marketing such as conventional (printed newspaper and broadcast advertisements) and free contemporary modes (social media); and how you can meet your consumer base.
2. A Strong Business Plan
Any successful business owner would tell you a good business strategy is required. A quick search on google will show free company models so don’t panic if writing pages and pages isn’t necessarily your thing. At the very least, make sure that you have a checklist that includes your individual company priorities as well as targets and milestones to chart success.
3. Cash Management
Cashflow issues are the most widely reported explanation for firms shutting their doors. You can’t purchase the stock without the cash to pay for it, bring the marketing strategy into effect, pay staff, or invest in machinery. Whatever type of company you own, you need to ensure that you handle your money carefully, keeping a close eye on spending and sales.
4. Embrace Technology
It’s hard to argue that technology is king in today’s world. As such, your company needs to be ready and comfortable with technologies. This involves ensuring the website is compliant with numerous browsers and computers, and also offering payment options such as wireless card terminals and contactless systems. Technology will also increase the productivity of your company by managing your ecommerce platform and automating administrative work.
5. Customer Focus and Engagement
When it comes to your company, remember that your company is nothing without your partners or customers. You can quickly overlook this and concentrate on the numbers when investing in new goods or attempting to maximise profits. But, to be successful, you need your consumers to be at the centre of any decision, from the modes of communication to the types of payment you use.
Starting your own company can transform your life for the better but, you need to be prepared to plan and work hard to make your venture a success. Stick to your strengths and outsource those tasks such as bookkeeping, payroll or virtual administration so you can focus on your core business. If we can help in any way, please feel free to give us a call on 04 2329199 or leave your details below and we will be in touch.
