How to Make Your Business Successful

A successful business is the best source of profits. 

One of the best money maker known to mankind is starting a business and becoming an entrepreneur. That's the reason why many people wants to start their own. They are motivated by the promise of profits, financial freedom and most of all, wealth!

But to be blunt, those promises and rewards will only come to you if your business is successful. And to make things worst, more than 80% of new business in the Philippines close down in their first five years!

You read that right bud! There are many reasons why Filipino entrepreneurs fails, but most of the time, it's because of big and tough competition, and mismanagement.

In reality, there's only a handful of entrepreneurs can make their own business profitable, and those who work harder and smarter can make their business a stunning success.

Now, the question is, how to make your business successful? What are the things you need to do? What are the traits you must possess? What are the things and negative traits that you should avoid to prevent your business from failing?

If you're still a budding entrepreneur with no real exposure on managing a business, then this post is perfect for you because we will now tackle some of the most important things you need to do in order to make your business successful.

1.) Money Management

Managing a business does not only require garnering more sales and raking up profits. You, as the owner must know how to handle your own and your business's finances.

Poor money management can easily bring down your business into the depths of oblivion. While managing your money efficiently can help save a falling business and eventually turn it into profitable one.

That's how important money management is.

Below are some easy but effective steps to manage your own and your business's finances.

• Create a record of your cash flow. List down your expenses, your sales, operating expenses and of course, your sales and orders.

• In operating expenses, you must include your own salary there. That salary will be your personal money.

• Avoid spending the money of your business. It is not yours anymore, it's your business's working capital.

• Create a budget, a personal budget and another one for your business.

• With these simple things, your cash flow will definitely improve.

2.) Choosing the Right Location

If you want your business to fail, then choose a bad starting location. It will definitely end your business in slow, agonizing way right before your eyes.

There are still some entrepreneurs out there who's impatient in selecting the right location for their business. It's either, their or a rush, cannot find a decent location and decided to settle on a place where there's little to no human traffic, and some are attracted to cheap monthly rent.

Selecting the right location for your business will take time and effort. It's better to avoid making hasty decision because it will cloud your judgement and might eventually lead to biggest failure of your business career.

Here are some things you need to consider in choosing your location.

• Visible human traffic, we don't want a business in the middle of nowhere. It is always good to start in a crowded place in order to attract potential customers.

• Target market must be present. If you are starting a steamed and fried siomai rice business, starting in a place where students or employees/workers on a budget passes by is a good start.

• Reasonable price of rent. Some place are expensive for a reason, but it the place you're renting is unreasonably pricey, then avoid it all cost. It's not worth the trouble.

• If the place you're trying to rent passes the criteria, then don't hesitate to grab it!

3.) Feasibility Study

Studying and researching is a must. A lot of new entrepreneurs neglect this part and start right away, but creating a feasibility study will save you a lot of time and trouble in managing your business.

By doing a feasibility study before actually starting your business, you will learn important details that can help you improve your plans. The study will also give you a foresight if you're business have the potential to become profitable or a legendary flop.

Here's how to create a simple yet insightful feasibility study.

• List down the things you will need to purchase for your business. This will give you a clear guide in the future to avoid buying the things you don't really need.

• Create a survey which is aimed at your target market. This is a good opportunity to study your potential customers, discover what they want, what they frown upon, and what will make them stay as a loyal customer.

• Using the data your gathered from the survey, create a product that will please your target market.

• List down the materials needed for your products. Their cost, cost of labor, total price of the product, how much are you selling it, and your possible profit.

• List down the cost of rent, possible price of electricity and water bill, and the permits you need to procure to operate smoothly.

• By doing these things, you'll have a clear insight of your starting expenses and operating cost. Also, you know the preference of your target market which is helpful in your future sales and garnering customer loyalty.

4.) Pay Yourself

The money of your business is not your personal money.

Many Filipino business's fail because they always forget this rule. Most of them spends the precious capital of their business like it's their own. They use it to pay their bills, pay for their kid's tuition fee, to buy the gadgets they desire, to purchase household needs such as groceries and toiletries, and more!

The spending of capital continues until the business starts to suffer... Inventory is going down, the sales starts to diminish because there's not enough products to sell.

Now they're wondering, "why does my business starting to fail? Where did I go wrong?"

Well, you're using the money of your business, that's why!

Giving yourself a daily salary will help you eliminate this destructive mentality. Pay yourself 350 a day for doing a great job and don't even dare to touch your capital.

Do this religiously for a month or so and the habit will stick around. You will see a big improvement in your business's cash flow and slowly, but surely, become profitable.

That's it! Knowing this four simple tactics will definitely help you boost your business to success!

You don't need complicated things in order to succeed, complication will just be a real burden for you in the long run especially if you're managing a small business. Proper discipline, smart money management, and right mindset will take you a long way ahead of the game. Grow slowly, grow with your business.

If you need to know what's the best business to start this year, be sure to check out my comprehensive list of business ideas in the Philippines this 2020. It will help you in choosing the best business that suits your budget and location.

Want to ask something? Need some advice? Use the comment section below and I'll respond as soon as I can.

Cheers!