Unless you are starting a non-profit, the main idea behind start-ups is usually making money. This is why profitability should be in your top priories when studying the viability of your venture. However, what happens when you are so focused on profitability that you move too fast, only to find yourself failing in the long run?
Here are a few things all startups should think of before focusing on reaching profitability.
Who you decide to do business with is one of the most important decision you will ever make. When you associate with someone, they represent you and you represent them, no matter what you do. When you start your business, take the time to truly think about who you want to take on this journey with you. Choose a business partner who shares the same vision as you, who have abilities that make up for you weaknesses (you complete each other) and with whom you feel very comfortable with. Do not be so focused on making profit right away that you fail to make decisions that will guarantee your stability in the long run.
Loyalty is one of the key ingredients to a successful business. If your customers are faithful to your brand, it will not only provide free publicity through word of mouth but it will also bring in more customers. This is why you should focus on delivering great customer service. Yes people might get excited about your business at first because it’s new and they love the hype. However, the hype of the beginning does not last and i is not what it takes to create something sustainable. You must focus on the rate at which your customers come back to you for goods/services. Only then will you be sure of stable incomes. Customers are not the only people who’s loyalty should be important to you. It is also very important to develop strong relationships with your suppliers. You will get many advantages such as:
- Lower costs
- Better quality control… and more
When you deal with the same suppliers throughout the years, it benefits your business financially but also, your costumers will be able to trust you more as your products will respect the same quality standard.
Your target market’s buying power
If your target market’s buying power is low, it is important to think of a strategy that will help you bring the cash in. Or this might be a sign that you have targeted the wrong audience. It is important to let your product/service have a testing phase before making big moves. Doing so will give you time to adjust. Sometimes, the idea is good but does not fit the target market. Taking the time to do so will help you make your product even better so that it gets a higher chance to sell in the long run.
Ann-Sophie Ovile, Writer, Shortstints