Building a Sustainable Business
Sustainable > Flash In The Pan
Are you looking to build a business? If so, it's essential to build a sustainable business, one that's built to last. Often, entrepreneurs get caught up in the headlines about businesses with hyper-growth rates. Pondering how can I replicate these results? But don't be fooled by short-term results, fueled by outside money or poor business models. The truth is, it is NOT sustainable. You don't want to be a "flash in the pan," and you don't have to be if you apply some wisdom proven to create a sustainable atmosphere. Are you ready to learn?
Wisdom Tip #1
Be Nimble.
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. A small river named Duden flows by their place and supplies it with the necessary regelialia
Wisdom Tip #2
Listen to your customers.
The pandemic showed us that human decisions and economic trends can flip quickly. From the great resignation to remote work, consumers have changed their behavior. Entrepreneurs need to listen to their customers to develop personas and segments to better understand their unique pain points and needs.
Ask for customer feedback.
Start customer advisory boards.
Track your critical KPIs.
You can be quick enough to take advantage of consumer trends and pivot your offering to meet these new realities from this data.
Wisdom Tip #3
Listen to your employees.
Employees who know they are heard are more engaged and productive. When staff members have a voice, they're willing to use it. One study found that, while companies are looking for new ways to improve, 82% of their staffers have ideas that could help achieve their goals.Keeping an employee's unique perspective becomes necessary for the survival or success of business operations due to changing conditions like increased competition from other companies who are also listening closely because it pays off big time! Help out those workers trying hard but stretched thin--it is essential both physically AND mentally before anything else begins.
Here To Help.Wisdom Tip #4
Budget, budget, budget.
If anything, the pandemic has taught us is that revenue streams can dry up overnight. Your margins are threatened more than ever from supply chain delays government regulations to inflation pressures.
It isn't easy to know when your business will be profitable and what resources you might need without a proper budget. It can also make operating within one's means more challenging as unexpected costs arise.
A detailed analysis that includes all probable expenses helps identify available capital for future growth opportunities while estimating how many dollars should go towards fixed or variable cost components to achieve maximum returns on investment.
A well-thought-out financial plan provides clarity around these topics: predicting revenue streams, deciding which type(s)of assets best fit company needs, and whether debt or equity financing is required.
Wisdom Tip #5
Own a brand position.
Too many businesses try to be all things to all companies. But the most successful brands are very targeted in their message, market, and the problem they are trying to solve. Sometimes it takes a leap of faith to focus on a smaller audience. But positioning your business is the fastest way to grow and utilize pricing power.
Wisdom Tip #6
Retain your key employees.
High employee turnover is a significant headwind to business sustainability. If you constantly replace key team members, you delay success in lost hours in training. These lost opportunity costs will make it harder to build a sustainable business. Investing in your key managers makes the life of the entrepreneur easier.
Internal training, streamlined processes, and improving efficiency are the key to scalability. This will allow you more time for external growth while still achieving results.
Wisdom Tip #7
Be authentic.
Many big corporations and entrepreneurs act more like chameleons, changing their belief systems based on the audience or the timing of the day. You are a leader when you lead with your heart and not just for the sake of it. Your true colors show in how others perceive you, so be authentic. Your employees and your customers will see this passion and follow it. Foster an environment that's infused with curiosity by rewarding those who go against traditional norms or follow their passions - because we all need more inspiration now than ever before.
Wisdom Tip #8
Partner wisely.
This is true from every relationship you get into in business. By your choice of co-founders, investors, outsourced teams, and vendors (ex: your accounting firm), your decisions will impact your odds for success.
Always surround yourself with those that will make you better.
In Closing
Don't sacrifice your future for a short-term expansion strategy.
A sustainable business has fewer bumps in the road, from buying out a disgruntled founder to an investor with timelines that don't match yours or the market. Closing A sustainable business is one where profitability and growth rates are in harmony. Running a sustainable business involves using your resources economically, where cash flow and budgeting lead to long-term success. Sacrificing the future for a short-term expansion may not always be the best strategy.
We partner with aspiring entrepreneurs to put them on the path to sustainability. Feel free to reach out to see how we can help you achieve your dreams.
Contact Us.