Growing A Business

During this section of the Business Start Up course we will take a look at the various options that are open to you when growing a Business.

The importance of quality customer service

As soon as you start your business, and especially when you begin trading, make sure your customer service is of the highest standard. In order to build a successful business you will need to build a good name. A successful business cannot be built on repeat business alone. Therefore it is essential that you obtain new customers. Naturally this can be done via advertising, but the best form of advertising is free and this is achieved via ‘word of mouth’.

A satisfied and happy customer is likely to recommend you to one other person, whereas an unhappy customer will tell ten other people about their bad experience with your company. Therefore, the only effective way to build a good reputation is to build quality customer service.

This can be achieved in a number of ways. First and foremost the product or service that you are selling must be of high quality. Customers expect a good service for their money, and rightly so! Take your time to ensure the product you are creating or the service you are providing is excellent. Think about the paying customer and how you think your product will be viewed by them. Trial your product or service with an anonymous person and ask them to provide you with feedback, both good and bad.

If you have a contact telephone number on your website or on your advertising material make sure it is accessible during your stated working hours. If customers get through to an answer phone then they are less likely to call you back. The same rule applies for email contact. State a time within which you will reply to customers’ correspondence and make sure you stick to it. For example, email contact details that state a response will be provided ‘within 48 hours’ are not good for a business. In this ever changing, fast world that we live in, people want answers immediately. Therefore it is important that you respond to them quickly, efficiently and promptly.

It is inevitable that you will, at some point, receive complaints. How you deal with these is extremely important. Even when you know that the customer is ‘trying it on’ in order to get a refund, it is still advisable that you try to resolve the issue and make their experience with you a pleasurable one.

Always have the interests of your business at the forefront of your mind and do not at any point make the complaint personal. Of course you will want to defend your business and you shouldn’t apologise for errors that are not your fault, but always try to resolve an issue and offer a full refund if you think it is warranted.

Market Research

To succeed as an entrepreneur you must attract and retain a growing base of satisfied customers. Market research is predominantly aimed at convincing people to try out or keep using particular products or services.

As a business owner and entrepreneur you should carefully plan your marketing strategies and performance to keep your market presence strong.

Any market research should be based on the importance of customers to your business. Essentially, effective market research has two important principles:

1. All of your company policies and activities should be directed toward satisfying your customers needs.

2. Profitable sales are more important than maximum sales.

To make best use of the principles above you should:

• Determine the needs of your customers through market research;

• Select specific markets to serve through targeted marketing;

• Determine how to satisfy customer needs by identifying your market carefully.

When you decide to carry out your market research you should concentrate on the following 4 key areas:

• Products and Services
• Promotion
• Distribution
• Pricing

Products and Services – Find out from potential customers exactly what they want. This can be achieved by speaking to friends, colleagues or relatives. You could pay a market research company to carry out the work for you but this can be expensive.

Promotion – How are you going to find out where to promote your products and services? Find out from your potential customers where they usually look for your type of service. Is it on the Internet, in the yellow pages or on the TV?

Price – What is the maximum price your customers are willing to pay for your product? This is very important. You may find that your customers will not pay as much as you think they will, in which case you will have to revisit your pricing policy.

Distribution – How will you distribute your products and services? Ask your potential customers how they would expect to receive or obtain your products and services. Whether it is via the Internet, through mail distribution or simply for sale through a shop, it is important that you understand what your customers want.

Where there’s a will there’s a way!

Determination, especially in the early days of your entrepreneurial career, is very important. You will undoubtedly come up against a number of difficulties and hurdles on your way to success and it is during these times that you must not give in!

You may find that you come across some negativity along the way too, this must be ignored. When I started my business I can remember quite a few people putting down my idea and stating that they felt it would never work. That was enough to drive me on and prove them all wrong!

If you have the determination, the will and the drive to succeed, then you can.

Remember, it is during the testing times that you will need to be at your sharpest!

Don’t be flash!

Flash means crash! So many entrepreneurs go out and buy the fastest and most expensive car with the investment they have obtained, which was intended to help them start their business. This is a usually a big mistake. Many of them want the status that goes with being a director and want a car to match their social standing.

Do not go down this route as all you’ll be doing is increasing your chances of failure. By all means purchase the car, clothes or other material accessories you desire when you can afford to buy them, but make sure you keep aside plenty of money for rainy days and problems that you might encounter in the early years of your business development.

The last thing you should be doing is buying expensive cars with the money you have borrowed or obtained for investment. If you really want expensive material items then work hard for them and set yourself goals to help you achieve them.

To move onto the next section of the Business Start Up course entitled 'How to write a Business Plan', please click here.