A growing business firm truly represents an indispensable part of any economy. This is due to a simple reason that it is a hotspot that can generate several employment opportunities for the minorities, women, seniors, and others. Even in today’s highly competitive marketplace, these businesses certainly do not tend to survive very easily. However, they do set up a framework to succeed financially and professionally by implementing the five C’s. Although new businesses are vital for any economy, they only thrive if they manage their operations in a better way via these C’s. Let’s explore these C’s now!
It is obvious that no customers, no business! Any new business, therefore, focuses completely on acquiring and retaining customers who are truly the lifeblood of business by generating the proceeds for running the business. This topmost priority can be tackled with several ways that tap the power of technology and market trends. They include advertising, promotions, discounts, telemarketing, and networking. Advertising uses various media to reach both old and new customers, such as e-mail, local newspapers, sites, directory ads, trade publications, and internet listings. Many businesses offer discount coupons, referral bonuses, and gifts for different levels of purchases. A specific form of advertising is branding that is designed to boost the reputation and awareness of the firm, although it is a costly measure. Networking at the chamber of commerce events is also a good medium of attracting new customers, especially for business-to-business services such as insurance and consulting. Telemarketing is also a common technique through which many residential services are offered quickly and conveniently.
Without enough finance, no business can run properly. A growing business certainly needs access to capital for several purposes, such as financing an office space, purchasing new equipments, expanding inventories, acquiring labor, and so on. In order to gain capital, it is vital for a business to establish a good relationship with lenders such as banks with a proven record of competence and trust. Only such relations go a long way to act as assured capital source for the business before a need for loan arises.
The lack of this C is one of the biggest limitations for a new or upcoming business to succeed while expanding in a new niche or market segment. Just because, the venture is new, it is not looked upon as a well branded one like its big rivals. Moreover, the promising customers of new businesses may have doubts with regards to the staff competence, future sustainability, and genuineness in terms of customer service or after-sale service. In order to build the desired level of credibility, testimonials, personal service, references, professional presentation, certifications, and word-of-mouth suggestions from existing customers do help.
This is one strong area that can speak in favor of a growing business to gain credibility. Consistent commitment in terms of service and quality can make such a business overcome its bigger competitor, irrespective of the niche, rival’s popularity, and product or service dealt with! The stress here is on the world ‘consistent’, which means exceptional service and quality throughout the lifespan of the business. This is one way to beat your rivals, whether small or big.
Without a good credit standing in the market, there is no way for a new business to flourish financially. Credit availability and management are vital for obtaining favorable payment terms, taking advantage of discounts, controlling cash flow, preventing cash-on-delivery issues, establishing relations with new vendors, and having a better goodwill in the market. Having good credit helps in bridging the short-term difference between the payables and receivables because of growth or seasonal time.
Author Bio: Ruby Warthen is a software developer who serves a famous Information Technology outsourcing company. Her current project is about creating financial asset management systems that are to be used by many institutions. You can follow her at @RubyPWarthen or https://twitter.com/RubyPWarthen.