The 3 Critical Elements to Business Success by Institutionalization
No one starts a business to just "get by."
Nowadays, more and more entrepreneurs are starting businesses at a historical groundbreaking rate.
This means that you have to fight harder and hustle more if you're looking to be successful.
Thankfully, you don't necessarily have to reinvent the light bulb or be a rocket scientist to figure out some critical elements that will weigh in on the success of your venture.
When it comes to having a dynamic and successful business - branding matters most.
In my previous article - I described the idea of standing out and being authentic. This is 100% true and it directly reflects on your brand.
With so many choices, a customer is given the opportunity to "explore" and selectively choose whom they wish to do business with. Is yours one of them?
Branding can consist of many things. It's not only about your logo and slogan. It has to transcend into the value and mission of your business. Your core philosophy!
And:
Your business needs to demonstrate that is able to consistently provide value to your customers. Only then will your brand resonate and be considered a powerful asset.
Many businesses heavily rely on doing business "on the go."
Although it may sound like a good idea, you are risking everything on the line. No one can build a reliable and profitable business without having some structured dependencies.
What are the systems that can be created?
From a more elevated perspective and bird's eye point of view, systems can be anything from how to acquire new leads to creating dependable sales funnels that consistently generate revenues for your business.
It's important that you take your time and document them. And, it's also as equally important to test them to make sure that they are dependable and can yield the outcome that you desire.
Objectively, the end game of any business is profit. And, lots of it.
Which means that you need to plan and create a budget that will help you accelerate your growth.
For many, they think that having a contingency budget in place is enough in case of financial pitfalls. That is, in most cases, not true. While contingencies are great, they do not do anything for you aside from being a cushion.
Here's the thing:
A lot of business owners tend to pour in good money after bad money.
What does that mean?
Simply put, they don't take the time to learn from their mistakes and believe that putting in more money into a system that is already flawed, will help them achieve better results. That is by far the worst assumption and mistake that a business owner can make.
Always align your finances in accordance to:
- A decent branding and marketing budget
- Funds that allow for beta testing and data analysis
- If you're hiring, at least 6 months of salaries covered (even though most say 3 months is enough of a contingency)
- Contingency money in case of miscalculated assumptions
- And, a series of other things that will depend on the type of business and industry that you're in
With that said, it's very important that you take your time and be realistic with the budget that you set.
In Conclusion
At the end of the day, if you're looking to create a business in hopes that one day you will attract a financial partner or wish to exit with great financial rewards, you need to follow the 3 critical steps that I've shared with you.
Remember, building a business takes time, so do it right and do it well.
#branding #business #funding