In the world of business it is all about growth. In this world you’re either growing or you’re dying, so get in motion and grow. Many business owners in Nigeria are beset with confusion on just what to do to better their business conditions. Many do not have a clear answer as to what has gone wrong or why their business isn’t seeing progress. It takes the sight of an eagle to see beyond what’s obvious to understand applicable principles of growing a business in Nigeria.
Most people fail to realize that inasmuch as for a business to be successful, huge capital must be invested, in reality and as a matter of fact, this is not the only criteria for success, nor is it the major factor to consider in growing your business.
Focus on free cash flow
A small business needs to define their free cash flow. Businesses typically calculate free cash flow based on what is left over after all necessary financing expenditures are paid and non-cash items are adjusted on the net income. When a small business owner starts to think about business decisions from a free cash flow vantage point, new opportunities and perspectives are gained. More specifically, growth opportunities become more apparent. Where many business owners lose sight of this important consideration is when they make huge capital investments into infrastructure that has large depreciation costs and little long-term value is created. Having a balance sheet full of stagnant assets that add little long-term value creates a financially inefficient company.
Stay focused on the prize
We have always tried to be very strategic in our approach to growth. We set three year business plans, track against those plans, and modify them when necessary. I believe that if you don’t set goals you have no way of measuring yourself, your team and your company against some pre-determined objectives. When everyone understands in a very crystal clear way what the overall goals of the organization are, it allows everyone to rally together and take pride in successfully accomplishing them.
Passion is contagious.
When you love what you do it shows to the people surrounding you every day in the office, facility or production plant. Showing excitement and enthusiasm cannot be underscored enough in terms of how it relates to your team working harder, being more focused, and ultimately more successful at their job. This translates to a better end-product. The opposite can be said for someone who is an unhappy person, leads through negative motivation, creates a challenging work environment or frankly doesn’t love what they do.
Challenge yourself to always keep improving
Technology is changing the world we live in every day. In order to stay relevant, it is important to innovate, regardless of your industry, as well as want to get better. This could mean new programs, new thinking or new processes. I believe that you are either moving forward or you are becoming obsolete. At Formula, we are constantly looking at our way of doing things and looking for ways to improve our end product, improve our client relations skills, and become more efficient at what we do, which ultimately drives greater profitability.
TRADE QUALITY PRODUCTS
Quality of products is one of the basic factors that determine your trading relationship with customers. Quality products guarantee that your customers would shop and return to shop again and again and again. You can only understand the importance of quality to the growth of your business when you comprehend the extensive importance of customers to your business who are the fueling factor for your success just as kerosene is required to keep a handy lamp burning. The more kerosene consumed by the system, the more flames it produces and the more brighter the light shines. The more quality stuffs you trade, the more customers you attract and the more growth your business acquires.
Most grown businesses I know, have behind them, owners who are time conscious. They have entrepreneurs who value time as money and they allow this to reflect in all of their business dealings. If you are low on time management and you really intend to grow your business in Nigeria, then you must upgrade this attitude to a better one. Valuing of time comes in different forms. When you tell a client to come back on Wednesday to receive his orders, ensure that you have every necessary arrangements in place to see that he gets his placement on Wednesday because unknown to you, he may also have people to promise delivery of same goods on Wednesday, you know how the hustle is, in effect you would be failing not just him but many people if you fail him on Wednesday. This is one way of reflecting value for time. This gives you an accreditation and customers see you as competent, this also goes a long way in giving you referrals and referral sales.
COMPARE RETURNS WITH CAPITAL
If you intend to grow a business, consider the marginal difference between capital spent and income received. This helps you to see if you’re on the right track with your type of business and cost of sales. At the very least, 30% income after expenses is good business but anything short of that is living from hand to mouth. Then if you have a business that gives you 50% income, you’re rich! There are still businesses that could earn you 100% and 150% turnovers, those are “perfect businesses”. However, they might be quite difficult to locate or at worse almost impossible to find. Whatever the case may be, if your current business isn’t paying you enough, consider increasing your costs a little bit and also try out ways to reach more audience.
Be conservative with spending and expenses. The only justified spending you can have from your yet-to-grow business is reasonable comfort and spending on . Luxury is out of place for someone intending to grow their business, rather invest such luxury funds into your business and earn more and further returns. It takes discipline to be a conservative business man, it isn’t stinginess but it is starving for a purpose. Look for ways to expand your business. Watch out for loop holes in your business area in terms of economics and patch them up.
HIRE A PROFESSIONAL
Lastly on the list is professional advice. Every business intending to be successful needs professional advise. That is why these professionals exist, if there were no need for them, they would never be in the society. Seek for expert in your field and receive guidance from them. Business consultants are the category of professionals am talking about, basically am a certified and experienced business consultant with such services available to render to you at affordable charges, write me for any related advise. So then yes, you need counseling and guidance from professionals to guide your business to impressive growth and success.