There may not be guaranteed routes to success of a small business, but there are important methodologies like survival and success factors and enhancing customer value that can be applied to your business.
Important factors for business survival and success:
Delivering perceived value to the customer and creating profit are the key factors for the survival of a small business. Let us consider example of a mobile cleaning service where you can make an easy entry without threat of serious barriers. You are required to invest in cleaning equipments which are normally available at modest costs. You don’t have to spend on numerous staff and costs of premises. These overheads can be taken into consideration as you grow.
The costs of service delivery are mostly labour intensive, while material costs are minimal. In order to manage these costs, keep labour resource at minimum level in the initial stage and expand it with the growth of customer base. This will enable you to sustain reasonable levels of net profit. By trying to achieve net profit in excess of capital raising cost, you will be comfortably able to manage cash flow during high growth.
Delighting customers:
Your ability to satisfy customers beyond their expectations is almost within your control. Your business capability will be judged by customers from quality of your products and services and how they are made to feel during the process. Their buying decisions will be guided by their good feelings and your response to their problems, if any.
You can add value to customers’ buying experience by paying attention to various elements such as perceived value pricing and confidence that the supplier will be at their doorstep in case of any difficulty or future need. You can get competitive edge by adding positive attributes that include your staff’s empathy, integrity, enthusiasm and commitment to provide best service to customers.
Factors for maximizing success:
Innovation and effective marketing are the drivers for maximizing growth. Strive hard to be creative and present innovative products and services to your customers. Your skills, qualities, attributes and values are unique to you and no one else will be able to duplicate exactly what and how you do and deliver.
For effective marketing there are many tried and trusted concepts you may like to consider:
What process are you employing for creating opportunities of up-selling and cross-selling?
How are your customers segmented for marketing purposes?
How do you use testimonials of customers for sales growth?
Keep these things in mind and see your business continue to grow over the years.
