28 Jun What Makes a Business Successful? 5 Key Factors to Remember
Many entrepreneurs have a great idea and start a business with a vision of a straight and smooth road to financial success. But the road to profitability is more like a mountain pass – it rises and falls, hitting dips, bumps, twists and turns along the way.
A great idea is just the start. To run a successful business in the UAE, you need people with exemplary planning and organisational skills. Having great people and efficient systems in place from the start is essential for the future success of any new business. The following tips will give some pointers on what you need to run a successful operation.
In respect to the other blog, yes looks good with the exception of the hiring talent – it’s a bit contrary to another blog we did with WIR recently whereby we discussed outsourcing to get the best talent at a more affordable and practical way.
1.) Good management is key.
A great product doesn’t create and sell itself. A successful business doesn’t just come from a great idea and a lot of capital, it needs solid management to grow. You need to be organised. Organisation is all about management, and great management can sell anything.
Good management is a technical discipline, something to which you must apply yourself. Analyse your business the same way a management practitioner would. Learn about the systems of iconic brands and how they structure their businesses and replicate what you can.
2.) Be strategic.
A business takes time to grow. As the owner/CEO, it’s easy to get caught up in the day-to-day running of the business. But at this early stage, it’s essential that you use your time effectively. Outsourcing is becoming an increasingly popular option for businesses at all levels. There are so many talented freelancers and companies that can bring their expertise to your business and enhance what services you provide.
During the early stages of your business, look to outsource tasks that you don’t have the time or expertise to complete. It’s a far cheaper option than employing full time staff. It gives you back your most valuable commodity – your time – and keeps your costs down, which is essential for every new business.
3.) Track your cash flow.
One key thing that so many young businesses neglect is cash flow management. Staying on top of your accounts receivable (sales) and your accounts payable (expenses) will give you vital information on where your business is performing well and the areas that need improvement.
Put together a cash flow budget with a few different scenarios, such as best case, worst case and different assumptions. You can’t predict everything, surprises always happen, but do your best with what you know. Establish an accounting platform now, and use software if necessary. Make sure you can tell where every single cent has gone. Once you’re on top of the cash, the planning process is easier.
4.) Put strong processes in place.
People are the backbone of any organisation, but your processes are equally vital. ‘Process’ is the series of actions you take in order to achieve an intended outcome or result. Within your business, you need to put in place clearly defined processes for each area of business – processes for raising capital, strategic planning, recruiting and training staff, research, product development, product testing, sales marketing and so on.
Train your staff thoroughly so your business processes become second nature to them. Efficient processes will stop the need for micromanagement and free your time to concentrate on moving your business forward. Regularly review your processes to make sure they are still working efficiently and adjust them if they are not.
5.) Get technical.
Technology is essential for two reasons – customers expect it and technology has become much smarter and accessible than when you last checked. There is countless tech available to help you operate more efficiently. People can only do so much, and in a highly competitive business climate, utilise the huge amount of tech that saves you time and money.
At Vital Corporate Solutions, we help you with company formation in Dubai, trade licence renewal, changing sponsors, and more. Get in touch with us today by calling 04 432 3959 or email us at firstname.lastname@example.org.