Business strategies to adopt in sustaining a Business in this hardship economy

A report by the Manufacturers Association of Nigeria stated that unfavourable economic conditions, capital scarcity, and subpar business practices cause about 80% of Small and Medium Enterprises to fail before their fifth anniversary. These factors have also impeded the expansion and evolution of micro-businesses.

The factors are not limited to:

– Strategic planning and efficient finance management: These are crucial if you want your company to stay out of the 80 percent of SMEs that fail before their fifth anniversary.

Business strategies to adopt in sustaining a Business in this hardship economy
Business strategies to adopt in sustaining a Business in this hardship economy

Strategic planning entails setting clear objectives, developing a vision for the future, and regularly reviewing and adjusting plans to align with market trends and business goals. Financial management, on the other hand, focuses on budgeting, forecasting, and maintaining a healthy cash flow to avoid potential financial pitfalls and ensure profitability.

– Effective customer relationship management: This is another essential element of business sustainability.

For recurring business and favourable word-of-mouth to flourish, strong relationships with clients must be established and maintained. Sustaining business success is largely dependent on customer satisfaction and loyalty, which are fostered by providing exceptional service and understanding consumer wants. Businesses can maintain their competitiveness and adaptability to market needs by adopting a customer-centric approach.

– Innovation and Adaptability: Companies need to constantly innovate to stay relevant in the ever-changing commercial world. This entails making improvements to goods and services, adopting new technology, and being flexible.

Adaptable businesses can take advantage of new possibilities and react quickly to changes in the market, which helps them stay resilient and competitive.

– Operational Efficiency: Maintaining a business also heavily depends on operational efficiency. To sustain high production and profitability, processes must be streamlined to increase efficiency and cut costs.

Process optimisation, technological investment, and ongoing staff training can all help achieve this. Businesses can prosper in highly competitive markets by implementing efficient procedures, which not only boost productivity but also improve profit margins.

– Effective Risk Management: keeping a business afloat requires effective risk management. Businesses can overcome uncertainty by identifying potential risks and putting contingency plans in place.

This entails keeping emergency money on hand, diversified revenue sources, and regulatory compliance. Long-term sustainability is supported by organisations that can limit negative impacts and preserve stability through effective risk management.

Understand Your Business

Seun Alley, the CEO of Fez Delivery, recently spoke about recognising the clear purpose and goals of your business at a panel discussion on business financing at the ‘Grow with Renny Conference: Maximising your twenties’.

According to her, “What even makes a business viable? Do you understand the business? Do you think that if you give this business another three years then, you will start making a profit? What are you selling because the business may be viable, but may not be viable for you?.”

Frank Yeboah

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