It can be exciting starting a business, which is why we cover how to get an online business running in our free webinar training. But unlike many people who have started their own online businesses, it becomes apparent that it takes a lot of work to make a company succeed and also keep it going. For those of us who do have new online businesses, it can be challenging figuring out ways to market the business and help it grow. That is true of any business, but especially new companies. Below are some tips on how to build a new business so hopefully, it’ll become a strong and profitable one.
Purpose
To develop an effective business Fast Company says you need a goal which means you should have a plan of action of how to set up a successful business. It means staying organized and effectively managing everything from the customers to drive sales effectively.
Every company needs to pin down “why we do what we do.” That’s the company’s North Star, guiding every aspect from recruitment to customer management to product development and sales.
A strong purpose drives growth and profitability. For instance, an investment in the Stengel 50 (a list of the world’s 50 highest-performing companies) over the past 10 years would have been 400% more profitable than an investment in the S&P 500.
In order to achieve sustainable success, companies must repeatedly reexamine their sense of purpose and make sure the organization serves it well. An authentic and inspiring purpose allows for:A constant, consistent sense of focus
A strong emotional engagement both within the company and with its customers and partners
Continuous, pragmatic innovation
Sales and marketing experts often talk about “unique selling propositions,” or “USP,” which Entrepreneur defines as the “factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition.”
A company’s authentic purpose gives rise to its USP. When a business has a clear vision, it’s easier to create products and services of value. Revlon founder Charles Revson, for instance, always used to say that he sold hope, not makeup.
Hire the right people
After your business takes off, it’s up to you to hire the right people. That may seem easy, but it actually takes a lot of time and consideration. Carefully think about what type of employee would be a good fit for your company and make an employee profile. That should help you have a better idea to put together a fantastic hiring process.
Forbes discusses how a business will have a hard time growing if you don’t hire experienced people or at least employees who are willing to learn and grow. Your company depends on the people you hire to make sure they’re good at what they do.
Without the right people, a business can’t grow and it certainly makes it difficult to sustain momentum over time. Business is about people and without the right people a business can’t grow and mature. Oftentimes, this requires an organization to refresh its talent pool in support of the organization’s business model and the unique needs of its clients.
Reassess your talent and ask yourself this question: Is your current talent pool servicing your clients and identifying the right opportunities to create and sustain business growth? Are they enabling their passionate pursuits in search of endless possibilities in their work?
Owner freedom
Of course, owning a business is an exciting time, but it’s also a huge responsibility. That’s why Inc. reminds owners that it’s excellent having creative freedom, but you should also be willing to let go of some of the power when the right type of employees show they’re capable of taking over certain aspects of your job.
For many entrepreneurs, releasing control over part or all of the business can be challenging. And that's normal. After all, your business is something you've worked hard to build and maintain. To help give your business the best chances for success, step back far enough where the business can carry on without direct owner involvement. Dependency on the owner robs the business of its autonomy, which can hinder efficiency.
Owning a business for the long haul can be hard work and a challenging experience, but for many, the reward far outweighs anything else. Adopting these nine habits for fueling company success can help steer your company toward long-term success.
Wise decision making
Wise decision making is imperative to keep things running smoothly. Forbes discusses how vital problem-solving is and figuring how what went wrong and how to fix it. The decisions you make now will affect everything going forward, so you need to figure out a solution.
Problem-solving is the essence of what leaders exist to do. As leaders, the goal is to minimize the occurrence of problems – which means we must be courageous enough to tackle them head-on. We must be resilient in our quest to create and sustain momentum for the organization and people we serve.
When an organization has the protocols, the standard operating procedures in place to solve problems and make sound decisions, they have enabled the ability to anticipate the unexpected to assure that circumstances don’t force their hand.
It’s difficult to sustain growth when you operate in an environment where people are constantly being overly reactive, rather than proactive. Sound decision making is a matter of good judgment and the ability to identify good timing and depth – to assure that momentum is created and never disrupted.
Content
How is the content on your site? Not only is it imperative to have compelling content on your blog, but your website should also shine. That means having a talented copywriter make your website product descriptions sound incredible. Entrepreneur offers some other tips below:
Always remember that content is king. Wherever you post content — website, blogs, social media — make sure its viable. Publish your content regularly. It can be anything, but at least some of it should be related to your industry niche, and your content should also be relevant to your potential customers. Post things they'll be inclined to share with family and friends. Also make sure your posts contain keywords that SEO will pick up so your site ranks higher in searches. Remember, too, that your potential customers like more than just text content. Images and videos really catch their attention and help them feel like they're engaging with you. Publishing a “how to” guide is a great way to start off. People like guides to help them with things. Making it downloadable is even better. You can also add an “opt in” form to have them submit their email in order to download it. This way you'll be able to gain their e-mail address.
Consistent Sales
After your online business takes off, it’s not yet time to relax. Keep the momentum going, as Fast Company suggests by developing a strategy so you can keep the sales up. Look over the scalable sales model below on how to work on current and future customer purchases.
Creating a unique product and brand isn’t enough. It takes repeatable sales processes to create a scalable business. It’s one thing to sign up a few customers; it’s another thing to design and implement sales processes that can be successfully deployed again and again at ever greater scale.
You’ve created a scalable sales model when:
You can add new hires at the same productivity level as the entrepreneur or the sales leader.
You can increase the sources of your customer leads on a consistent basis.
You have a sales conversion rate and revenue that can be consistently forecast.
The cost to acquire a new customer is significantly less than the amount you can earn from that customer over time.
Customers get the right products in the right place at the right time.
A repeatable sales model builds the platform to scale. But it can take a lot of experimentation and intensive research before you hit on one that’s truly sustainable.
Inc. also emphasizes sales and how important it is to make sure recurring transactions are taking place. Monitor what is causing the most sales and try to repeat the same actions to continue making money.
Sales are a necessary part of creating profit. Recurring sales help establish predictable and steady profits. Selling a job at a time or doing one-off projects can pay the bills yet leave the future unclear. Creating quality sources of recurring revenue such as memberships, licenses, maintenance and more can help businesses sustain for the long term. To start, check around your industry and see what's working for other business owners.
Join us during our free webinar training to learn more business fundamentals and how to continue having a profitable business online.
Sources: Fast Company, Entrepreneur, Forbes, Inc.
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