Think, take action and take your business to new heights

27 August 2012 - When an entrepreneur launches a new business all he or she dreams of is success. However, once this success is achieved and the business is ready to grow further, many business owners just don’t know what to do.

This is a common challenge for owners who work in the businesses they have created; often they are too involved in day-to-day events and become frustrated because they know that new opportunities are passing them by. This was noted by the Business Coach on the Standard Bank-sponsored SABC3 series that examines and advises real business owners on the challenges facing small business.

According to Clive Pintusewitz, head of Small Enterprise and Enterprise Development at Standard Bank, the real art of being an entrepreneur is knowing when it is the right time is to start thinking about expanding the business. “Even more important is being able to think creatively and identify the correct steps needed to take the business to the next level,” he says.

“Taking the time to think about why the business was started, what market segments are served, and what makes services or products desirable to customers, will supply all the clues needed to put a business on a new growth path.”

The main things to think about, says Mr Pintusewitz are:

·         Whether the business can grow ‘organically.’ This is the best form of growth because it means being able to grow without having to make too much additional investment in the business.  You can grow business by:

-          Ensuring that a good customer data base exists. Once regular buyers are identified keeping in touch with the business via e-mail is easy.

-          Encouraging ‘regulars’ to spend more by offering a frequent customer discount or other incentives.

-          Getting existing customers to bring new customers to the store by offering incentives, such as small discounts, when a friend buys an item.

-          Trying to introduce a new service that will appeal to customers. This works well if it is a deal that is a natural follow-on from a service that customers use regularly. For example, offer a customer in a hair-salon a discount on a premier hair product you already stock if they have a style, cut and blow-dry.

-          Broadening the marketing reach. If most customers come from a particular geographical area, it often pays to see if what you are offering is available in other areas close by. If it isn’t, by making a small investment in additional marketing, you could substantially grow your customer base.

·         Benchmarking your business against a business that is similar to yours and is highly successful. This enables you to:

-          See what you have in common with the other business.

-          Assess what they offer. If they have product lines or services that you could also introduce, perhaps the time has come to consider doing so.

-          Look at their retail areas and see what makes them different or more appealing. Think about what could be changed at your business to make ‘browsing’ areas more attractive to customers.

-          Compare your staff against those of another business. You may find that when it comes to certain skills, such as product knowledge, their skills are better than those of your employees. If this is so, consider introducing training for your people.

·         Taking a critical look at the products or services you offer. It’s easy when business is good to overlook other opportunities. Often, by identifying a second- stream of products and services, an entirely new income stream can be opened. The most obvious example here is petrol stations that sell fuel, but also offer household items for sale in their own shop.

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“Most importantly, never lose sight of the fact that because your business is successful, you have already proved your business abilities. Growing the business further just means taking the skills you have already harnessed and using them to maximum advantage,” says Mr Pintusewitz.

To learn more about all aspects of building a successful business, consider accessing “Coach Yourself” modules online at http://thebusinesscoach.standardbank.co.za, where business issues, problems and challenges are all fully examined and explained.

  

Note to the editor:

In the 9th episode of The Business Coach, which aired on 26 August 2012, we saw that a lack of foresight can impact negatively on growing a business. The inclination of many entrepreneurs is often to concentrate on what they have achieved, rather than constantly look for new opportunities.

In the weeks ahead, SABC3 viewers on the Business Coach will see a number of different issues that small business owners experience.  Viewers can tune in at 4PM on Sunday, 2 September 2012 to see how an owner of a real enterprise faces the everyday challenges that could impact on the business. 

Anique Human
Project Worker
Magna Carta Public Relations