Bizzalley's Business Q&A
Bizzalley's Answer-The goal of every business is to control the largest percentage of the market that they can handle. Hence, business owners are constantly seeking ways to increase their market share. Ordinarily, we would think that by simply expanding the production process, we would be heading in that direction but the truth is: even though increased production will reduce the cost of production, this may not necessarily translate to increased sales. There are measures you could take when expanding your business, however, that would definitely result in the increase of your business’ market share. First, ensure that your expansion is bringing something new into the market. This will compel your customers and those of your competitors to choose your product/service because you are offering them something that no one else is. Also, you can expand by acquiring one of your competitors, this way you already have a customer base without having to start marketing from scratch.
Bizzalley's Answer-The ultimate goal of every business owner is to be successful. However, there will be times where things may not be going as planned. If your business is ever in that place where efforts are not being equally rewarded, giving up should definitely be the last thing on your mind. Your first step should be determining where your major problem lies. Are you marketing your business right? Are your prices too low? Do you know your customers well enough? When you are able to honestly appraise yourself and your business, you should be able to identify your major problem areas. Now go back to the drawing board, take business courses if you have to, invest in aggressive marketing, use social media to your advantage, adjust your pricing and in little or no time your business will be on the rise again.
Q)What external forces are threatening my business?
Bizzalley's Answer-All business breakthroughs are borne out of calculated risks. So if you’re one to avoid all forms of risk, then maybe entrepreneurship is not for you. As a business owner, you will need to put your time, your resources, your reputation and sometimes your relationships on the line for an idea that may or may not be successful. Worst part is, not all of these risks (even the ones that have been carefully calculated) will pay off; do not let this deter you. However, if the consequences are way more than the potential rewards, then that might be a business risk you want to think twice about taking.
Bizzalley's Answer-Before there are products before there are employees, there is capital. For first-time business owners, putting together the resources to begin is not always the easiest thing to do. That’s why you need to explore several financing options that will that drive your business to debt. One of the newest and most popular ways to raise capital is through crowdfunding. With platforms like Kickstarter and Gofundme, you can get people, family, and strangers alike, who believe in your business to pool resources together. There are also the options of venture capitalists, angel investors, and business loans.
Bizzalley's Answer-We all know businesses that were household names ten years ago, but have gone under today. As a business owner, longevity ought to be one of your greatest concerns. In order to achieve this, you have to be willing to take the necessary risks in order to stay relevant. Pay attention to industry trends and make sure that your business is on the right side of things. Use technology to your advantage, make innovation your goal, engage your customers and consistently create value for them. If you pay attention to all of this, your business will remain relevant even after ten years.
Q)How do I recognize growth opportunities for my business?
Bizzalley's Answer-In business, nothing is ever guaranteed. You have to constantly seek out opportunities for growth and sustained profitability in order to stay relevant. Doing this would require intentional planning efforts. First, you have to develop and define a system for searching for and identifying opportunities. This system would be reliant on your business’ goals and strengths. Next, you would need to study the market, analyze customer demands and how they are currently being met, and evaluate brand value propositions as well as your competition. Going through all of these processes will help your business recognize new opportunities and how to create plans to maximize them.
Q)How can I reduce business expenses without compromising on product quality?
Bizzalley's Answer-Since profit is the difference between revenue and expenses, by doing the math you would realize that a reduction in expenses would result in increased profits. However, the last thing you want as a business owner is to sacrifice quality for profits; it won’t take long before the cracks will start to show. One of the ways to reduce costs would be to up your negotiation game. By getting the best deals on raw materials, you are able to reduce production costs while maintaining quality. You could also consider reducing your product line. If you have products that are not doing as well as the others, it may be time to get rid of them and focus on your best sellers. Also, you may need to reevaluate your operating procedures. This will help you identify processes that are obsolete or no longer as effective. Finally and very importantly, use technology to your advantage.
Q)Is my business scalable?
Bizzalley's Answer-Is your business equipped to handle the ever-increasing market demands? This is a question that every business owner who is gunning for posterity needs to ask themselves. To achieve this, you have to work on gaining more customers without having to proportionally increase production costs. This would require strategic financial planning, understanding your fixed and running costs, and determining what would be required of your business at the end state.
Bizzalley's Answer-No one can give you a specific time frame because only you know when your business is ready. The most important thing is to do your research, make sure whichever it goes (win or lose) your business can handle the costs of diversification. Finally, don’t stray too far from your path. If you’re diversifying your business, make sure to do it with related products.
PS: you may want to consider expanding your current business instead of diversifying, the ball is in your court.
Bizzalley's Answer-Before you think of diversifying, you need to be succeeding in your current business. That would provide a solid foundation for the diversification process. You also need to study the market you are planning to venture into and connect the dots between your current business and the prospective one. Finally, leverage on the facilities and processes that you already have to make the diversification process a smoother one.
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