With only 50% of startups making it past the first 5 years, equipping your business with the right startup strategy to sustain and grow your business will be key to its success. The balance between investment and productivity is always a juggling operation for any business large or small.
Businesses Directors should be open minded as to how they shape their companies. After all – what you started out producing in the infancy of your business, isn’t necessarily what you will be selling in 10 years’ time. Similarly, who you primarily sold to when you first set up isn’t necessarily who you will be selling to in 10 years’ time. To be sustainable, businesses often need to change and then re-adapt their startup strategy depending on several aspects, these may include:
- Trends – As trends change so too does the requirement for different product styles. It is worth keeping in mind that what may be suited to one buyer isn’t necessarily suitable to another. Understand your customers and the market in which you operate in and look at new ways of working including new products and services which are emerging. All of these aspects will help the business to keep up to date with changing trends and meet demand encouraging you stay ahead of the competition.
- Location – Throughout the lifetime of a business, a change in location can arise for a variety of reasons. A company may outgrow their original location and require a larger premises, a decision may be made to move their business because there is a better demand for their services somewhere else and wish to be more visible / customer facing. Alternatively it may purely be a cost decision to save money which may determine whether or not a business should relocate.
- Technology – Technology is continually evolving. Investing in new technology can help the business in many ways and allow companies to move with the times. Technology can improve productivity, CMS systems help to streamline customer services, Digital marketing programs could improve sales and build the business profile whilst Account technology helps to evaluate costs, sales targets and investments within the business.
- Costs – One of the most challenging aspects of running a business is cost as understanding the balance sheet is imperative. It is good practice for businesses to regularly evaluate and fine tune where necessary. Fixed costs, staff and suppliers can all be tweaked based on necessity and demand to help maximize profits and keep the business sustainable.
- Up-sell Opportunities – Whilst your business may start out with a core range of products, you may soon get asked by your customers for other related items. Up-selling complimentary products or providing bolt-on services will help to boost your business sales. Remember that the little amounts of revenue here and there, soon add up to a greater sales target at the end of the month!
- Re-evaluate competitors – Checking up on competitors from time to time will help you to evaluate how your own business is performing. Check competitor websites for information as well as social media pages to review how much successful engagement is taking place with their customers and carry out a mystery customer investigation to review competitor service and pricing. All of this will help your company to recognize where it can improve and what is running successfully.
Calling all business start-ups, your insurance should be part of your startup strategy!
Have you recently set up a business or are you looking to set-up in the near future? Here at Crendon insurance we provide cost effective commercial insurance packages for start-up companies. Based on your service or product we will tailor a start-up strategy insurance package to suit your company.
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