Every year a large number of people start their own business and become their own boss. This thought itself is heart-warming and attracts most of the jobless people to start a business of their own. But this isn’t totally true that only jobless people go for entrepreneurship. Last few years have noticed a massive increase in entrepreneurship by youth who even had a good job and settled life. The reason behind this is -their urge to earn more and to become their own boss.
But the fact is 80% of the new business fail within a year itself and the rest have a 50-50 chance to succeed and make profit in the next year. Indeed it will not be wrong to say starting a new business whether small or big is a risky stuff. There are many important things which should be considered and done to convert a small new business into a successful one. Let us have a look at some of the top formulas of success.
Success Formula for Small Businesses
Attention and Analysis for Your Business
When you start a business lot of attention is needed to analyse the market place. First and foremost thing is to keep your eyes open and know what is going on in market regarding your business product, what’s the trend and rates. Read local newspaper for any news which can keep you updated. Knowing your competitors is also a part of your analysis. Knowing your competitors help you to plan your business accordingly.
Evaluate Feasibility of Your Business
Only because you saw a need for that product or service you intend to offer it. This doesn’t imply you can sell that product profitably. Sometimes, the reason behind nobody is offering that product can be because there’s not enough of a market for that particular product. So count the numbers first (approximately).
Operating your own business whether small or big is rewarding in many ways.
- It provides you job security. (You’ll never be afraid of your boss letting you kick out.)
- It’s a good way to make money.
- It allows you to spend your day according to you doing something which you can enjoy and be proud to do. By using this, your odds of success will increase exponentially.
Combine the three elements- Talent + Culture + Extreme Customer Focus. You have to work hard to get your entire team execute your plan with discipline. A question to be asked is: “What percentage of companies that know how to succeed in the marketplace, who have a great strategic plan? The point is having a plan is never enough, efficient execution of the plan is even equally important? This is possible when you hire great people for the work, create an amazing atmosphere/culture, and always do a job of listening to your customers — if you can’t install a high level disciplined execution in your work, you will not be able to succeed.
The Financial Leverage Formula
Probably the most common and best route to a profitable business is the financial leverage formula.
Explaining how this formula works requires a bit of arithmetic. You need to understand the arithmetic to see why this formula works—and what happens when the formula fails.
The financial leverage formula works on an economic principle: If you borrow money from a bank which charges you, say 10% as an interest and you reinvest that money in something that pays you, say, 20%, as it increases your profitability by 20%.
So, when you have a proper plan for your business it’s good to borrow from any bank or NBFC as this can increase your profitability by multiple times. For borrowing there are many options available to you in form of different banks’ lending you Business loans at affordable interest rate. Now a days adding to this option line of credit is also available from which you can borrow according to your requirement.
Your Passion = Your Success in Business
This part needs to be broken down into sub parts. When one is passionate about his/her – job, business or career many things happen
- Work Harder: You need to work harder and in more passionate way to achieve success in Business.
- Work in a Smarter way: Only hard work is not sufficient your need to work smartly too and need to have a creative mind for solving business related problems.
- You need to be Better Focused: Studies are the proof that when you enjoy what you do, you will not be easily distracted. Thus, procrastinate is not an issue. You can stay focused for extended period of time when your work is according to your interest.
- Tend To Set Bigger Goals: Start setting your business with small goals on monthly basis and after you achieve them successfully move towards bigger goals for year. Setting goals motivate you and makes you passionate to work hard in order to achieve them.
- Your Business Attract People: When your business is going good. Many people find it attractive to join you and earn profit. You may get an angel investor for your business which can help you earn more profit.
When you decide to start a new Business or even if already have one try these business success formula in your business. It will definitely add to your profitability and growth in business. Keep reading this blog for other financial tips and suggestions.