How much to scale
Yesterday I was centering my article on the unattended issues of low means. I learnt a lot in the process even as the writer. This is one of the reasons I love writing. In the process I am forced to brainstorm and improve my level of knowledge. How many times have I come to realize hidden potentials and unlockings that I have had to add to my daily businessing. I am becoming a book for myself. Maybe I will be spending some days rereading my old articles, to me, they mean a lot to me.
Moving forward, I am going to center on something still close to management but this time a more focus on business. Just as said yesterday, we miss so many signals and stay depressed until insight comes. I am aiming to become a TOP class entrepreneur, it will take time and continuous learning though. Without doubts, this long term entrepreneurial investment will be worth it.
So I was going through some of the flaws I am seeing in my business. I talked about the issue of advertising some days ago. It is on sector that needs huge attention. To add more to that, if this can be done well, then what I am focusing on will manifest rapidly. So what is my focus? How I can scale my business to a big brand in a couple of years.
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The first question to answer here is, what is a primary grower of a business? Is one word, revenue. How much do you make at the end of the day, week and month?. Of course this tallies too to where we can be at the end of the year. So let's break it into the needed fractions, how much should my business generate in a day to hit the necessary targets? I have to be sincere with myself, we are behind our target. It was something I discussed with my co-partner last year when an argument rose up concerning our poor returns.
He felt money was coming in and was not showing in out business pause. What he missed was this, aside from what comes in, how much is our daily expenses. Secondly, this cashflow happened within the period of November and December, so how was business running during those earlier periods of drought? An insider will always know more. It is my duty to manage business and I know how much I have to put into expenses even when nothing is coming. In short, opening a business premises is an expense on its own.
Of course, that inflow died down during January and he has come to realize what I was saying. It boils down to consistency, what is the minimum we have to make daily? Are we making it?, if no, then we remain vulnerable. There are no two ways about it as business cannot scale on a long run. Any business that doesn't hit its minimum daily target is awaiting its extinction. This is the current situation I have to seriously address, I didn't come this far to start over.
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It is better I do what is right on time. Without doubts, the current economy is making business look somehow burdensome. We are facing a slow market in the presence of so many forgone alternatives by potential customers. Nevertheless, I have to admit that if I can do better in this season then there is a future for my brand. I decided to do some addition and subtraction for the year and find out our minimum daily targets. Indeed, expenses are very high. One of the best thing to be done would be to shift price to balance this odds yet, that can't be done.
The reason is because we are a growing business and can't influence prices to such a high level. Taking for instance, our Network providers just increased the price of data by 150%. Customers are grumbling yet they still have to buy. I am even inclusive, I need data to keep business active, if I choose not to comply then business will be affected.
Big businesses always have a hedge. I guess they've done their needed calculations on how to stay on a tangible profit and have applied it. It's ALL centered on scaling, without that they may not be able to meet up with their business target maybe in the next five years.
To conclude, let me add, numbers don't lie and when you fail to admit this, especially as an entrepreneur, you will get punished. Standing the test of time is about generating the needed revenue to stay ahead of every seasonal or economic curve. I hope to put all needed strategies to meet this target.
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