We at Rekopane Dot Biz are going through a transformational phase where we are implementing systems and business structures. We have re-designed our business model and added muscle by fostering new business-partner relationships. This has already paid off through internal business development, new business opportunities as well as through innovative products that we will soon be launching.
It is unfortunate that some 80% of entrepreneurial businesses will not get to experience what I call ‘organic growth’. The mere 4% of businesses who make it beyond the 1st 10 years achieve this because they’ve systematically or naturally gone through the stages below. These stages will apply to a business, product or service:
1. Proof of concept
Entrepreneurs are known to be innovators, problem solvers and even trouble makers in some instances. This stage I call proof of concept does not begin unless you have an idea, but even fools and lazy people have ideas so we are not going to qualify the idea stage as the initial stage.
Once you have your idea you have to prove that it will be worth your time, effort and other people’s money, before you waste all of these scarce resources on a worthless idea.
Just because you came up with an idea and your numbers make sense on paper does not mean it will work, you have to prove it. Take your idea (concept) to market but bare in mind what your objective is - to prove if your concept (business idea) will work.
2. Brand development
Once your concept or business idea has been proven, then you can justify investing in brand development. Following with this step makes sense for 2 reasons:
I. Proving your concept first gives you the true research data you need to improve on your offering.
II. Proving your concept 1st and interacting with your target market will help you develop a brand and marketing message that you know has a better chance of reaching your target market. While proving your concept you will experience which marketing messages and selling language works with your customers. This will therefore help you develop a brand and marketing communication that’ll reach your target market.
Cicero says: “To win my heart you must think my thoughts, feel my feelings and speak my words”. It is through communicating in the words of your customer that you will be understood. And it is by being in contact and selling to your target market first that you will truly be able to know how to craft your brand and marketing message.
3. Systems and infra-structure development
Smart entrepreneurs don’t just take risks but calculate their risk and therefore start their venture with very minimal risk. This normally translates to low capacity in the initial stages. In other words, because you started small, by the time bigger deals come to your table chances are that you do not have the capacity to deliver on them. This could be because you don’t have enough staff, big enough machines or you just don’t even know how to tackle this new beast of a deal.
Don’t stress because this is the right approach. In his book ‘Lose the business plan’, Allon Raiz has a chapter called ‘Where’s the washing’. Here he uses an example of a lady entrepreneur who wants to start a laundromat and therefore believes she needs loads of money to buy washing machines needed for big laundry jobs. Big washing machines don’t come without a big loan or a large financial investment. But what if the big jobs never come? How will you pay for the big loan then?
The lesson here is that you should use your own washing machine to start out and when the big deals eventually come, then only should you get the bigger washing machines. More importantly you will need to have a system to help you sell, find and service the big deals. If you don’t have well formulated systems to help you run your business then how do you plan to train new staff, who or what will guide how you do business, how will your business be run if you are not around? Systems will help guide all the activities within your business.
In part 3 of ‘In pursuit of Business Intelligence’ we will cover systems and infra-structure development in more detail. We will complement this part by featuring a local guest blogger as well as by interviewing an international expert on this subject, so stay tuned.
4. Service excellence
It doesn’t get any simpler, make your customers happy and they will make you wealthy. Happy customers will even pay you up-front if you ask nicely. But that is if you are brilliant at what you do and, more importantly, that you deliver excellent service.
Service excellence is what customers’ desire the most and is made up of:
I. quality products and\or service,
II. friendly and competent staff,
III. after sale assistance,
Study what your competitors are doing and what keeps their customers going back for more. Speak to some of those customers and find what makes them happy about the service they receive there. Find out what else they’d appreciate. Survey your customers and find out what else you could be doing to improve on your service to them and implement it.
Commit to continuously improving your standards of service and you will be a sure winner. Treat your customers like the kings and queens they are. Keep your suppliers happy and continue to develop the people within your business. This will contribute greatly towards service excellence.
The above is a process that needs continuous revisits and improvement. This process has helped us to become a better player in our field of business. See what will work for you and share how you’ve achieved ‘organic growth’ by commenting on this blog.
Regards
KK Diaz for Rekopane Dot Biz