GROWTH After combining all the factors above, it is important to grow the business to a desired level. The business has to grow from its original level which is the local/national level to a multinational business. The growth is all about patience, It’s possible to combine all the factors above and still not be able to make a business multinational. The key to the growth of any business is goal setting. These goals serve as a guide as well as a motivation to work hard and to keep track of mile stones that have been met in the growth of a business. There are various factors involved in growing your company, some of these includel Relationship with customers: While we don’t particularly agree with the “customer is always right” phenomenon, we do believe the customer should be treated with respect. The customers are the main source of income of the company and for that reason, it is necessary to gain their loyalty and trust thereby securing their purchasing of you product. l Relationship with Staff: The staff can be referred to as the heart and soul of a business, while we say the customers keep the business running, the staff make it run… The staff are dedicated to satisfying the needs of the customers as well as the demand of the CEO (who is also a member of staff but higher).
Ever so often, the staff should be rewarded with raises or promos. The CEO should build a decent relationship with the staff he is directly in contact with, thereby teaching them to show the same level of respect to their subordinate. This way, a culture would exist in the company and it would make the running of the company smooth.l Choice of location: The location is a very important factor in the growth of any company. As a CEO or Leader of a business, you want to be in a location where your business will thrive and even take over the entire market. The whole idea is to be in control of the market and get sufficient recognition to grow into a multinational business.
l Franchising: Depending on the type of business, franchising is a good idea. It lets you run your business under a different management whilst gaining publicity. l Legalization of business: From the very moment you start your business, it is important to have all the legal document needed for the existence of the business. It ensures that you’re protected by the government and it also builds trust in potential alliances.
l Form alliances: It is important that you form alliances with businesses that’ll help yours grow.These alliances are symbiotic, both businesses help each other get better. Merging with or acquiring another business expands your market to the business merged with or acquired; their customers become your customers.
l Diversify: It is important that your business is ready to adjust it’s strategy when is begins to grow. As a growing business, you will begin to target other markets. A particular strategy might not work in all markets, so, for every new location or market, a new strategy and business plan should exist to ensure success in that location. l Win a government contract: As long you are able to provide services or a product needed by the government, endeavor to sign a contract with the government. The government is usually willing to invest a lot of money in its projects , this increases your revenue by a significant amount. l Expand to the internet: The internet is one of the best places to gain popularity, there are millions of people surfing the web especially social media, so builing your online presence would increase your market and automatically giving you global representation. WHY COMPANIES FAILEven after considering all of these steps in building a multinational business, some companies still fail.
The following are reasons why this occurs: l Lack of proper planning – Businesses fail because of the lack of short-term and long-term planning (Goal Setting). Your plan should include where your business will be in the next few months to the next few years. Include measurable goals and results. The right plan will include specific to-do lists with dates and deadlines.
Failure to plan will damage your business. l Leadership failure – Businesses fail because of poor leadership. The leadership must be able to make the right decisions most of the time. From financial management to employee management, leadership failures will trickle down to every aspect of your business. The most successful entrepreneurs learn, study, and reach out to mentors to improve their leadership skills. l Poor management – Examples of poor management are an inability to listen, micro-managing – AKA lack of trust, working without standard or systems, poor communication, and lack of feedback. l Lack of capital – It can lead to the inability to attract investors.
Lack of capital is an alarming sign. It shows that a business might not be able to pay its bills, loan, and other financial commitments. Lack of capital makes it difficult to grow the business and it may jeopardize day-to-day operations.l Poor location – Poor location is a disadvantage that might be too much to overcome. If your business relies on foot traffic, location is a strategic necessity. A poor location might make your customer acquisition costs too high. l Poor financial management – Use a professional accounting software like Freshbooks. Keep records of all financial records and always make decisions based on the information you get from real data.
Know where you stand all the time. If numbers are not your thing, hire a financial professional to explain and train you to understand, at least the basics. l Lack of focus – Without focus, your business will lose it the competitive edge. It is impossible to have a broad strategy on a startup budget. What makes startups succeed is their ability to quickly pivot, and the lack of focus leads to the inability to make the necessary adjustments. l Personal use of business funds – Your business is not your personal bank account