Building a System that Stands the Test of Time

For every business, there is a profit motive. So, apart from selling quality product or service, the successful entrepreneur is also concerned with how he can maximise profit without compromising quality.

Unfortunately, however, most businesses die soon after they are set up. Research conducted years ago revealed that more than 80% of businesses do not survive the first five years of their operation.

Reasons? Well, there may be many reasons for failure of many businesses, but in this article, I shall be discussing five reasons I have observed recently:

1.   Saturated Market

A saturated market is a market where you find too many suppliers competing with each other in meeting the demand of few consumers. A lot of people enter into a business simply because they see many people doing the business. But obviously, it is not easy for a newly set up business to thrive in a heavily competitive market. The solution could however be:

a.   It is either you map out a strategy for surviving the first five years of operation; or

b.   You enter a market where demand outstrips supply. In such a market, the demand for the product or service is so high and constant that the present suppliers find it difficult to meet consumers’ demand.

When you are operating in this type of market, consumers are much more likely to buy your product or service without YOU making much effort looking for customers.

c.   For most, if not all businesses, you cannot keep offering bad product or service and hope to survive or thrive in the business.

There is no way you can convince an unsatisfied customer to buy more products or services from you in future when the product or service you sell to him makes him unhappy.

Similarly, an unsatisfied customer is a ‘bad advertiser’ of your company. Once you sell any person a bad product or service, he goes around telling people who care to listen that you sell bad products. This will go a long way in affecting your business.

To stand the test of time, let people know you for the high quality product or service you render.

2. High Price

When it comes to pricing, you can hardly beat customer to it. Customers are very mindful of their hard-earned money and many of them would not buy any product until they go round to find out the prevailing market price of the product they want to buy.

If your product price is far higher than the prevailing market price, the chances are, you may not find many customers buying the product from you. Therefore, you need to avoid over pricing your product. Always charge reasonable price for your product or service so that you can stand the test of time in the market.

 3. Waste

Little things, they say, matter. As far as your business is concerned, the little money you make from your business regularly counts a lot. Aggregation of the little earnings makes a huge amount.

To thrive in your business, you must develop a strategy of ensuring that those little money you earn constantly from your business are not embezzled, siphoned or wasted.

I visited a business centre sometime ago at Sky Memorial in Wuse Zone 5, Abuja (November 2011) to print a two-page document and I was surprised that their price is not only low,  I was also issued a receipt for that little N60 transaction for the two-page document. Instead of charging N100 per page, they charged only N30 per page, and they issued me a receipt for it!

Holding the receipt in my hand, I began to wonder why they should issue receipt for such little transaction. It then occurred to me that this is a way of curtailing waste and embezzlement as well as being accountable.

Sometime ago, I also visited the Abuja office of one of the most successful lawyers in Nigeria. This lawyer has many lawyers working for him. As I stepped into the premises, I saw a notice placed at a very conspicuous place on the entrance to the storey building which grabbed my attention.

The notice is a strong warning to clients which says: DO NOT GIVE YOUR MONEY TO ANY LAWYER.

As I ponder on this warning, I came to the conclusion that this warning is a way of covering the loophole of fraud, and ensuring that the business thrive and stand the test of time.

If your business must thrive and stand the test of time, you should invent a strategy aimed at curtailing waste and embezzlement. Don’t just rely on your staff, set up a system of accountability and try to cover every loophole and prevent your business from sinking.

4. Build a System

Business is all about building a system. System here implies putting things in place so that your business will continue to thrive even when you are away for some time.

System varies from business to business. A large establishment may require complex system for it to thrive. A simple system may suffice for a small supermarket. For instance, all that is necessary to run a small supermarket is to employ one or two honest and intelligent salesgirl or sales boys who will put price tags on all the products they sell, provide trays in which shoppers place all the products they want to buy and then issue receipt upon payment.

These days on the Internet, many businesses are run on autopilot. While the internet marketer is fast asleep, his blog/website continues to make money for him round the clock. People buy products on his blog/website and pay on the spot, while the products are sent to them online or via courier service as the case may be.

For your business to thrive and stand the test of time, work hard to put up a system that will continue to generate income for you even when you are way for some time. Strive to build a system today. And until I come your way soon, go and live victoriously!