Important Elements to Build a Successful Business
It’s great that you have decided to build a business. But wait a minute are you also worried like Aaron?
It’s a talk about six years before.
One of my friends Aaron wanted to establish a business. He was having no idea how to kick-start his business journey. He kept holding his dreams since long time.
Since there are endless factors associated with building a business. It was nearly difficult for him to get a clear idea. But later on, we connected together and started building a business.
So we identified some key potential elements for building a business. These important elements were those key pillars for building a potential business.
Here are those important elements for building a business:
-Target Market Segment
-Running (Operational) Capital
-Supply Chain Management
Human Resources are the most important element for running a business. The future growth of your business depends upon your human resources.
Therefore you should focus on building a potential team to grow your business.
Here is an integral structure for human resource at every business organisation:
-The priority level bodies include Board of Directors, CEO, CTO, CFO, etc.
-The managerial level executives include HR Manager, Marketing Manager, Business Expansion Head, and more executives.
-The operational level executives include employees working at different operational levels in different departments.
Target Market Segment
Target Market Segment comprises the whole of your target customers. A large target market segment will result in more revenue collection.
Here are some small activities you can perform to capture your target market:
-Use different methods to interact with your target audience. Keep regularly updating your platforms
-Respond actively to enquiries and approach them to buy your products
-Train your customer support executives to maintain a closer association with them. Direct them to focus on problem solving approach while dealing with them.
Write catchy emails, offers, quick calls, etc. to engage with audience.
-Consider solving the disputes (if any) or problems of present customer in a positive manner. Bring back for regular customer by creating trust among them.
So all of us want to grow, expand, and circulate our business. It all happens with the help of our networks and partnership.
We need to keep good associations and fruitful relations with our partners.
Here are the different partnership associations you must maintain closely:
-Distribution Partners: A product or service reaches to masses with the help of distribution. Distribution partners play important role in growing your business.
Keep connecting them and increasing personal touch by rewarding them with gifts, personal visits and featuring them under your business domain.
-B2B Channel Partners: Many corporates do business to business deals for purchasing products in bulk or marketing it after further value addition.
Maintaining a good relation with B2B Channel Partners can be more valuable for your business.
-Resource Partners: Every business requires raw materials for operations. So by maintaining strong bonds with resource partner, you will be assured with quality resources at handsome pricing.
Revenue Streams is the basement for business growth. It is the most necessary part which manages all business expenses and generates profits.
As a growing business you should develop multiple revenue streams. Any shortage of cash flow can create difficulties in running your business.
-You can define your revenue streams and generate more ways of earning profits.
-In the other way round, ask businesses who are having similar target audience to cross sell your products too.
Give them exclusive pricing and have long term deals.
Market Forces are very fluctuating in nature. The demand and supply for each product goes high and low. But you can make some approaches to be constantly running in this market fluctuation.
-Make a competitive pricing to attract more audience.
-Use the gifting or lucky draw techniques to create buzz in the society
-Feature your top priority customers whether business or individual.
-Promote your customers and they will make your business grow.
Running (Operational) Capital
Many businesses depend upon revenues to adjust in running capital. Avoid doing this big mistake.
We cannot ensure heavy revenue throughout the year. Many challenging factors may keep your revenue fluctuating.
The lows of revenues may create difficulties for managing your business operations. So start maintaining at-least 6-8 months of running capital in hand.
-This should include your salaries of employees, rent, taxes, allowances, raw materials, cost and various bills.
The profitability of a business also depends upon the cost of raw materials.
Definitely a high cost will lead to low revenues. So managing raw materials cost becomes important.
The quality of raw materials is another important factor which can impact your business.
-You can start buying your raw materials in bulk to slash down your prices. It will also reduce bits of your shipping charges.
-Try to buy your products from trusted supplier to ensure best quality raw materials.
-If you want to ensure best pricing and quality, then maintain exclusive long term deals with your raw materials supplier.
Do not hesitate to have some deals which can give you exclusive benefits.
Supply Chain Management
A product or service without distribution is no-where to go. Supply Chain Management is a process of moving a product to customers by different mediums.
How to ensure a smooth supply chain management?
-Give third party inventory for your products on top platforms like Amazon, Flipkart, etc.
-Give distribution rights to people dealing in your business segment. Example: If you are a book publisher, then you can give distribution rights to a popular local book store.
-Maintain exclusive business to business relations with courier companies. The brands will offer you an exclusive quotation which will be much less than normal rates.
I will suggest you to connect with Blue Dart or DTDC for the same.
-Create your small stores or hubs at places with heavy demands. You can easily meet all the requirements in short time.
So the above were the important elements for building your business. As we are now aware of it, so I’m sure you will be giving primary focus on the above.
A management enthusiast, an avid reader and a traveller. The world is a beautiful place so I keep travelling, spending time between nature, on the riverside and gaining new experiences.