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Overview of business.
The term "Business" cuts across several disciplines. It's usually used to describe any activity that is entered for profit-making. This definition does not make "profit-making" the core purpose of venturing into business. Profit is seen as a reward for doing your business well. How well you do the business determines your level of reward (Profit). So, what is the purpose of a business?
Though it is very difficult to get the exact figure of the new businesses open yearly because of inadequate data, it has been reported that "Total human population of 40 Global Entrepreneurship Monitor (GEM) countries is almost 4 billion out of a world population of 6.3 billion; 63% of the world population is represented in this assessment. Among these 4 billion, 2.4 billion are in the age range of 18-64 years, which approximates the working years in most countries. Among these 2.4 billion, about 12% or 297 million are active in trying to get 192 million businesses past the initial launch and through the initial three years of operation.
Note: These figures may not represent the current figures.
In the U.S alone, Over 627,000 new businesses open each year, according to Small Business Administration estimates. At the same time, about 595,000 businesses close each year (latest statistics as of 2008).
According to the world bank, in Nigeria, over 86, 000 businesses are registered every year. This data is only for registered businesses. Several businesses are operating illegally without proper registration with the appropriate authorities. It has been reported that about 80 % of these businesses failed within one year of establishment.
Things you must do for your business to be successful.
I will be truthful to you as possible as I could. Business is a game of risk. In other words, it's for those that can take risks and are willing to take them.
A saying says "everything that you need is at the other side of fear." Do you know this is very true in business? If you can overcome the limitation of fear, you will most likely get everything that you need. Many people have been limited to what they're today because they were afraid to take action. They were not sure if their action could yield positive results and become profitable.
You must take action and take it now. You don't have to be like them but then, let me show you some tips to guide you in your business.
Do these and have a successful business
1. Business planning and Market Research.
Market research can be seen as the process by which we gain insight into how markets work and understand the current trends in a particular business field.
It's always important to carry out some market research before starting a business. This will help you to know the number of people using that product daily, competition in the market, how the users of the products get it whenever they need it, and many others.
Timely and adequate market research is needed to prevent business failure and to build a profitable business. Once you're done with the market research, develop a plan for your business. Ineffective business planning is one of the commonest causes of business failure worldwide.
Business planning is an effective way of preventing business failure. This plan is contained in a written document called "Business plan."
Planning your business helps keep you on track, prevents business failure, creates an environment for capital investment and capital expansion, gives partnership opportunities, identifies your strength and weakness, and so on.
2. You've to be up and doing.
Business is not a "start and rest" something. It involves your active participation to make it work. There is no enjoyment in it until it becomes stable. Sometimes, you will have to do everything yourself to make it work.
People will rarely give much attention to your (new) products and services until you have convinced them of the benefits and worth of using them. This means that you have to know your products more than your potential customers to be able to convince them. You may also have to be the one looking for your customers especially if you're just kick-starting your business.
3. Don't look at it this way
Many businesses have failed because the business owners didn't understand the main purpose of a business. Many entrepreneurs think that the core purpose of starting a business is to make a profit. NO! That is not completely true. What is your take on this? If so, what is the purpose of business? The purpose of business is to create customers and have them keep coming. If you fail this, your business may likely fail in no time. Once you have successfully created your customers and have them keep coming, you will start making profits. Hence, the purpose of business is to create and keep customers. Making a profit is the reward for creating and keeping your customers.
4. Marketing
This is often time, a very difficult aspect of a business. Finding the right people to sell your products to is usually not easy. In a situation like this, many have found their selves engaging in a promotional campaign for their products.
The task of bringing your business before your target audience could be a daunting task and resource-demanding. There are many companies like ours that do promotional campaigns and help clients to promote their products. You should always use your social media accounts to your advantage.
Invite your friends and family to become the customers that will buy from you. Ensure to treat them well so they can make recommendations to their friends and family and bring you referrals.
5. If you want to gather honey, don't kick over the beehive.
1. Don't make your customers feel like you're better than them. If you do that, they will not come back.
2. Don't promise what you cannot offer them. If you do this, they will lose trust in the system.
3. If you want your customers' loyalty, develop a genuine interest in their needs.
4. Ensure that your products satisfy their needs. Customers' satisfaction is very important in every business. If they're not satisfied, they may likely not coming back to buy from you. If they're satisfied, they may not only come back but also, they will refer their friends and family to come to buy from you.
I hope this article helps you and your business.
Don't hesitate to get in touch.
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