Month: June 2021

The viability of a business is measured by its long-term survival and its ability to sustain profits over a period of time. A business is able to survive when it is viable because it continues to make profit year in year out.

A business demonstrates its viability by making a profit every year of its existence. Some say a viable business is one “with legs,” and the Cambridge Dictionary says something with legs can continue to exist and be successful for a long time.

When a business loses its viability, it loses its profitability which is always difficult to recover. Thus, stay tuned with us as we show some tips to build a viable business.

Business Viability is tricky to define and create, but there are some key factors to making a business viable.
Compare these factors with your business and consider the ideal steps that suit you in increasing your business viability.

Creating viability is a two-part process. First, it means creating a marketing strategy by knowing who you are, who you are selling to, and who else is selling to them. Second, it means having your business financial house in order(through proper bookkeeping of course).

To create a marketing strategy that will make your business viable, you’ll need to have 5 key information:

First , Your Unique Selling Proposition: Having a unique selling proposition (usually called a USP) is a first critical factor in having a viable business. You can go through our previous post to identify ways to create one for your brand.

Remember you can always reach out to us for all your #businesssupport needs, as we remain committed to your business growth.

Increasing your profit is very important to growing your business. If you expand your business but continue to increase your costs, you won’t actually have any money left to invest in your business or make a profit.

So while you’re looking for ways to grow, pay close attention to the costs associated with running your business and getting your products or services to customers. Lowering these costs can be an effective way to give your business the cash flow it needs to grow and stabilize. There are two main approaches to cutting costs:

Stopping the production of low-earning products or eliminating low-performing services.

Improving your revenue through new marketing and sales tactics.

• Identifying gray areas in your business and introducing new business techniques that will make your business process smoother, better, and more cost-effective. E.g If delivery service is a huge problem for your customers, considering that they have to pay for high delivery services within the state where your business is located, you can consider owning a branded delivery bike to help ease off extra cost for your customers. This gives you extra cash flow as well.

However, remember to be careful not to cut costs in a way that impacts your customer service or employee satisfaction. Happy customers and enthusiastic employees are both key drivers of business growth. Cutting costs in these areas will ultimately harm your business’ ability to expand, even if they give you more cash flow in the short term.

Still, on ways to expand your small business into a large one, our second step is leveraging on referrals. These customers are already your target market, which means that people in their social or work circles are likely to be your target market as well. This makes them a strong access point to new customers.

However, assuming that your customers are recommending your business isn’t going to increase your customer base. You have to actively seek referrals. Depending on the type and size of your business, you can:

• Ask satisfied customers if they know anyone else who would be interested in your products or services.

• Incentivize referrals- via discounts, money back, etc.

• Encourage customers to share and tag your brand on social media.

This way, you are assured of continuous sales for your business.

Spending Money To Grow Your Small Business is another way to expand your small business: The benefits of spending money to grow your small business include:

• Developing a new product line, re-positioning your brand through new brand items.
• A proportionate savings in costs gained by an increased level of production.
• Increased capacity to attract qualified team who can further improve the organization.
• Expanding geographically to take advantage of opportunities in other markets.
• Access to a wider variety of financing (at a lower cost) from banks, financial institutions, crowd funding (esusu, cooperatives).
• Eventually becoming a public organization so that shares in the business can be bought and sold on a stock exchange, giving ownership an opportunity to sell shares and recoup their investment.

It is important that small business owners have an expansion forecast in their timeline. This way, as the profits come in, you work on keeping a clean record to aid a quick expansion process, which will further boost your sales and make your brand formidable.

What are your expansion plans? How do you think we can work with you in achieving this? You can reach out to us to further discuss this.

For the first year of successfully running a business, most business owners are focused on survival.

Prioritizing the growth of your business via expansion is one of the best ways to increase the chances that your company will not only last but also contribute to your economic well-being and a stable financial future.

One way to successfully expand your small business to a big one

Recapturing Your Existing Customer: As one of the major ways to business expansion. It is important to note that getting new customers is not the only way to grow your business. Most times, the customers you already have are your best bet for increasing your sales, and studies have found that improving customer retention also improves the value of a business/company. Customers who have already purchased from you once are more likely to do so again, especially if they have a positive customer service experience. All you need to do is capture the contact information and shopping preferences of one-time customers. Then, use that information to set up marketing systems that we previously discussed in the past. This will convert them into repeat customers. Today, ask yourself if you are getting it right with customer retention, if not work out ways to do this. We are happy to support you with this.

A unique selling proposition also called a unique selling point is a statement that presents your product or service better than competitors. It is essential for business owners to understand their USP because it is a meaningful way to set their product apart from those of their competitors and encourage people to buy the products or services.
Your USP contains the one feature of the product that most stands out as different from the competition, and is usually a feature that conveys unique benefits to the consumer.
As a business owner, you must identify your unique selling point. Stay connected as we introduce more content that will aid your business growth.