Vic Bageria is the UAE Chapter President of Entrepreneurs Organisation (EO). EO UAE Chapter is a global, reputed hand-selected group of entrepreneurs who have scaled their businesses in the region and have established themselves as pioneers and leaders in their space and contributing to regional impact.
Vic shares his expertise on some of the valuable lessons for taking your business to the next level.
How to add life to small businesses?
As we already know, small and medium-sized enterprises (SME’s) face many market difficulties due to the ever-growing presence of competitors and challenges in the form of changes in customer trends and preferences. Statistically, over 75 percent of small businesses fail within five years of its launch. Therefore, it is critical that companies continuously monitor the environment for upcoming opportunities and threats to capitalize on the market quickly.
However, a number of startups has increased over the years. According to a recent market study, over 25 percent of the respondents start new businesses as they prefer to be their own bosses. In addition to environmental scanning, companies must also follow other steps such as active and effective management of corporate resources as well as employee training and development.
Over the years, there are many books and studies that have helped entrepreneurs gain valuable insights on the industry and successful business practices. This knowledge has helped them successfully grow and survive in the market for over the years.
Below listed are a few of the lessons that have positively impacted business growth.
Effective Management of Corporate Resources
It is a must that leaders must continuously track and allocate sufficient resources for the efficient completion of business operations. As a result, the company can avoid wastage of resources and duplication of tasks. A vital life lesson to learn is to focus on the task at hand rather than trying to solve multiple problems in one go. A stressed-out leader becomes an obstacle for conducting day to day tasks effectively.
Most small businesses fail because they lack practical goal setting strategies. Many companies try to achieve a multitude of goals in a short amount of time and thus, lose focus of the main picture. As a business owner, it is crucial to create long-term goals and then small-term plans to achieve it over a span of time. Scheduling and target setting play an essential role in witnessing step-by-step completion of the company’s mission and vision strategies.
Choosing Your Battles
A dominant behavioural trait that has been noticed in many business owners is the lack of time and other resources to capitalize on all the factors present in the market. As a result, owners invest in opportunities only to abandon the idea later. In the highly competitive and dynamic industry, it is crucial that businesses choose their battles as they can’t act on every market threat and capitalize on every opportunity present in the market.
Employee training and development
As a business owner, it is essential that firms hire the right people with the right attitude and skills for long-term achievement of goals. Therefore, companies must rely on channels such as current network and social media to locate the diverse talent present in the market. Also, it is crucial for businesses to generate high engagement and motivation rates. Promoting a positive and welcoming corporate culture, recognizing and rewarding employees as well as promoting teamwork and personal employee growth plays a vital role in high employee engagement.
Deliver a solution, Not a Product
Promote the model of generating a solution to a current problem present in the market. These solutions add life to a business and promote a positive corporate image in the market. According to research, over 90 percent of the products launched fail within a short time and around 45 percent consider the lack of need for that product as a significant reason for the market failure. Therefore, retailers must invest in optimal environment scanning strategies to identify gaps in the market and provide solutions to fulfill them successfully.
Investing and Financing
Alongside successful marketing and advertising strategies, it is vital for businesses to create a proper budget and investment strategy. Statistically, over 30 percent of the small businesses fail due to the improper allocation of funds and lack of money for future use in the company. Therefore, businesses must maintain a proper budgeting plan that allows them to manage funds and prepare for any future contingencies. Also, they invest in events and other programmes to further improve networking skills, gaining insights on current trends and preferences as well as hiring the best talent.
The startup ecosystem has witnessed s steady growth, and with the ever-rising government initiatives and programmes, it has become simpler for small companies to survive and grow in the industry. Moreover, technological advancements and rise in other innovative ideas have improved the overall corporate landscape, thus playing an essential role in successful developing a culture within a business.