While some business managers are complaining of depreciating profits, inability to repay loans and declining demand for their products and services, others are smiling to the bank on a regular basis.
In some cases, business managers have experienced both booming and declining business returns at different times.
In order to remain competitive, experts advise entrepreneurs to show determination for success by coming up with new strategies.
Increase your marketing expertise
To be on a par with leading professionals in a chosen venture, experts advise that competency has to be built.
According to the Managing Director, Bandel Enterprise, Mrs. Joke Olawale, a business manager should be knowledgeable in all areas of business management.
“In marketing, the use of targeted messages and a combination of marketing techniques have a wider reach than limiting yourself to one method. The way messages are crafted in business promotion also plays a huge role,” she says.
According to her, every business is expected to solve people’s problems; as such, understanding how different categories of customers perceive their problems will help define your messages more clearly.
Olawale adds that proper understanding of their individual behaviour will help in deciding the right marketing techniques to use in reaching them.
In dealing with the supply chain, she suggests upgrading the system with advanced technology such as warehouse automation systems to improve efficiencies and minimise costs and inaccuracies.
She adds that important parts in the distribution network should be synchronised.
Olawale encourages the use of tactics that will integrate warehouses, production facilities, customers, location, volume and roles of suppliers.
According to her, the overall goal of improved distribution network should be in tune with every strategy implemented.
“Communication with all stakeholders is important in order to facilitate the supply and demand requirements and the movement of inbound and outbound products to their destinations at the right time,” she adds.
Be creative
Experts say innovation or new ideas are the lifeblood of 21st century businesses and are the number one driver for strategic partnerships worldwide.
According to them, developing new technologies and products as well as efficient and reliable processes at lower global cost should be sought after.
Find ways to earn more
In order to generate more revenue for the business, Olawale suggests finding ways to leverage the existing clients’ base to offer affiliated services.
She adds that spending more time to develop a new product or service, in line with the present business, and then launching it will prove more profitable.
As long as the delivery is satisfactory, she says the money will keep flowing in and more clients will be gained through referrals.
Minimise expenses
Experts say that a business owner’s ability to manage expenditure plays a key role in the survival of the business.
They say strategic planning, which involves a review of the company’s operations to find ways of saving money, should be adopted.
They suggest lowering the cost to suppliers and the provision of better training to employees, which tends to improve productivity. Strategic planning helps business owners prioritise marketing expenditure, so that money is spent where the greatest output is expected.
The Chief Executive officer, Business Craft Limited, Mr. Ade Israel, says that whenever business managers notice a gap in financial returns, the best thing to do is to analyse the expense and income and identify the loophole draining the organisation’s profits.
The Faculty Director, Soar and Heritage, Mr. Sola Adeyiga, says that savings on cost can be made by eliminating or reducing the factors an industry competes with.
He says, “Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale of economies kicks in due to the high sales volume that superior value generates.
“Eliminating factors that the industry offers but which do not really influence consumer buying pattern also plays a role in reducing costs.”
source: Punch
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