How to Build a Conducive Business Environment in 2019
Building the right conditions for a business to thrive is essential. A fast-growing company can achieve several things which include gaining prosperity around the world. It is therefore vital to understand what your business requires to obtain high rates of growth. What are the factors that provide a conducive environment?
World Economic Forum recently conducted a world survey on entrepreneurialism on more than 1,000 entrepreneurs. They found out that three factors are the enablers of business growth. Here are the factors that will create a conducive environment for your business growth:
1. Access to Markets
This factor basically concerns the ease with which your business develops relationships with its clients. Building a good customer relationship is any business lifeline. By establishing a good customer link, you start building your access to the markets. It is a gradual process that requires high diligence. It entails finding people who believe in your products or services.
It is about driving business into new territory. How to win these clients is hard and expensive. You may opt to either do it yourself or use other people. The latter approach is the best. The kind of people to have, are those who understand your expertise, product or service and are excited about what you do. Connect with them and offer them value. In return, they will touch other people who will benefit the business.
Building strong relationships is a long-term process which won’t happen in one-time meetings. It necessitates a solid plan to grow those relationships. You can apply these tactics to build your relationships and win great access to the market.
Create a Healthy Relationship with People Around You
These are business colleagues, partners, professional acquaintances and other people you meet while transacting business. Such contacts are potential customers on the wait. To turn the networks of contacts into customers you only need to add value to the relationship. Treat them like your business-life depend on them.
Utilize Communication as the Contact Spot
Here you need to be more outgoing. It’s not only about handing over your business card, and in fact, no one will remember you from it. Engage people in networking events, make connections and later do follow-ups. For instance, you can send “nice to meet you” emails. Here is the trick: It is rare to meet people at the exact time when they need what you offer.
Thus, make people think of you when they need your product or service. What will make you stay in their minds? Keep your network of connections warm all the time.
Email is a Powerful Tool to Keep Relationships Strong
Remember your follow-ups on events meetings was able to add contacts to your email list. What do you do with such contacts later? A straightforward way is to send a brief email newsletter to show your prospects why they should buy from you. You can convey tips and advice through emails to keep in touch with your customers.
Email marketing is a cost-effective way to build customer confidence in your expertise. You can use it to forever stay in your customer’s minds.
2. Human Capital
Human capital refers to factors of production that constitute knowledge, skills, habit, personality and social attributes. Your workforce investment should improve production. How do you make your human capital grow your business? You must invest in it to pave the way for flexibility, mobility and forward-looking. The way to achieve overall human capital is first to identify the skills gap. Then, strengthen the transfer of expertise.
While hiring the best people is important, bringing out the best in them is more important. Your company can achieve this by providing new hires and other employees, the opportunity to learn and grow. For instance, you can offer overseas postings or have rotations across different corporate functions. Such approaches will equip them with skills in their current responsibilities and also prepare them for future leadership roles.
The fastest growing companies go an extra mile by incorporating in their strategies, the anticipated economic and industrial changes. They also consider the leading business trends. Such methodologies if applied in your business will not only enable employees to manage their work responsibilities. They will also help fulfill their personal goals more effectively.
The benefits that your business will reap from such undertakings include increased innovation, lower turnover, and high productivity.
3. Access to Funding
Your business might look to expand geographically to access new customers and increase presence. This will require funds, and so access to funding is essential. Your company may also need funds to fulfill large orders from clients. Such an order would require substantial upfront cash which would mean seeking financing.
If such an order is regular, it means a promise of significant revenue. Therefore, your company should hunt aggressively for funds wherever available. Different avenues are available to attain funding, and you can use more than one option. You can take a fund depending on your desire to be in debt and the amount you need.
The types of funding available include:
Such are available from financial institutions like banks. They use determining criteria such as credit history and business track record to offer loans. Where you lack a previous track record, they may request for some form of security.
If you are highly innovative and have a prospect of good growth, you may attract this kind of funding. Here the funder provides financing and obtains an equity interest in your business. Equity financing is also worth considering where you don’t qualify for debt finance. You can benefit from investors who are willing to take the risk along with you.
Venture Capital Funds
There are wealthy individuals and financial institutions who can provide venture capital. This funding is usually in the form of Equity. The venture capitalists will require significant returns on the investment. They can exit within five years.
The three elements will play a significant role in driving your business growth. They are the ultimate environment necessary to foster development. They outstand factors like the regulatory framework and cultural support. Embracing the above three elements will ensure business thrives.