Small
businesses, which are the engine-rooms of any economy that wishes to see the
light of day, have had a very agonizing battle for survival and growth. In the
21st century, challenges being faced by small businesses are becoming tougher
by the day. The following measures should be put in place to stay afloat:
1. A Sound
Business Plan.
A sound business plan is very instrumental for the survival of any small business. It serves as a guide to notch up a firm’s goals as contained in its Mission Statement. There should also be a survival strategy.
A sound business plan is very instrumental for the survival of any small business. It serves as a guide to notch up a firm’s goals as contained in its Mission Statement. There should also be a survival strategy.
2. Have a
Foresight:
Foresight is the ability to see things before they transpire.It can also be defined as ' Seeing the end from the beginning'. With this intuition, a manager stands on a better position to invent a new product or idea. Most innovations, in years gone by, arose out of foresight. Developing this intuitive gift has to do with your interaction with people who are creative in what they do. You should also peruse motivational books.
Foresight is the ability to see things before they transpire.It can also be defined as ' Seeing the end from the beginning'. With this intuition, a manager stands on a better position to invent a new product or idea. Most innovations, in years gone by, arose out of foresight. Developing this intuitive gift has to do with your interaction with people who are creative in what they do. You should also peruse motivational books.
3. Sound
Financial Management.
Finance, which is a very sensitive issue in any business organization, should be properly managed. The proper keeping of books of accounts is very necessary for business growth. It can be used as measure for checking fraud and error. Financial resources, if prudently utilized,
bring about increase in the wealth of a business.
Finance, which is a very sensitive issue in any business organization, should be properly managed. The proper keeping of books of accounts is very necessary for business growth. It can be used as measure for checking fraud and error. Financial resources, if prudently utilized,
bring about increase in the wealth of a business.
4. The
External Business Environment:
These are factors outside the control of management. Any management worth its salt is anticipated to react adequately to them. They can make or mar the objectives of a business concern. These factors can take any of the following:
a. Legal Environmental Factors.
b. Social and Cultural Factors.
c. Technological Factors.
These are factors outside the control of management. Any management worth its salt is anticipated to react adequately to them. They can make or mar the objectives of a business concern. These factors can take any of the following:
a. Legal Environmental Factors.
b. Social and Cultural Factors.
c. Technological Factors.
5. The
Global Economic Depression.
Since the advent of the global economic depression in the third quarter of 2009, so many small businesses have shut down. Survival strategy should include the following:
a. Increase in the quality of product or service.
b. Customer satisfaction.
c. Decrease in running cost.
d. Be up to date with technological changes.
Since the advent of the global economic depression in the third quarter of 2009, so many small businesses have shut down. Survival strategy should include the following:
a. Increase in the quality of product or service.
b. Customer satisfaction.
c. Decrease in running cost.
d. Be up to date with technological changes.
Business
failure in the 21st Century has been triggered by some environmental factors.
Business managers are required to fight tooth and nail in order to stay afloat.
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