Building a business that lasts beyond a business owner is the dream of most entrepreneurs, with the exception of those that have an exit plan. For example, some entrepreneurs start up a business with the plan to build and sell off the business, but it is still important to make conscious efforts in building a long lasting business.
Investors will only invest in a business they believe is long lasting whether by equity or debt or buying out the business. Every investor wants to be sure they can recoup their investment in folds over time. One way is to create a business model that can replicate its first success. A business model must not only be viable but should be successful in different phases of its existence. It must quickly be adaptable in different market conditions, phases of expansion, change of employees, location, economy, weather etc. these are some of the factors a business must be able to replicate its success in.
A business should be adaptable and thrive in different phases. Business models go in and out of fashion periodically. Market trends and customer behaviors if properly studied can help make plans that will ensure a long standing business. An entrepreneur must follow the market consumption trends and tune the business to the market trends.
Pushing productivity in a business is a great way to successfully build a long lasting business. An entrepreneur must continually improve on productivity by measuring the efficiency of key factors in the business. Factors for productivity are technical (mechanical), organizational, personnel, management, location, etc.
For personnel and management factors affecting productivity, a business owner and all team members must learn to be organized and work together to carry out important tasks and achieve all goals set to ensure maximum productivity. We have established in the past that strategizing should be a continuous process in business. To successfully build a long lasting business, an entrepreneur must also continually refine its strategies and processes. A strategy for a business to be unique, profitable, gain customers, retain customers, be innovative and lead the industry, won’t always hit the nail over time.
It is important to reevaluate these strategies from time to time to ensure it’s still working effectively and refine where necessary. A strategy to retain customers can be to send them messages every other week but must be refined if this is done by every other business as this can become annoying to a customer.
Reinvent your business from time to time to give your customers something fresh and stay relevant in their minds. That’s why most social media apps reinvent their functions regularly. There’s always some exciting new feature every couple of months to keep customers using the apps. Driving consistency will help build a long lasting business. A business’s offering should be consistent enough to win the trust of customers anytime and every time. Ensure the best qualities of service and product offerings are consistent and should only evolve for a better and more accepting version.
One must develop talents within a business and delegate to them to build a long lasting business. Develop talents that will keep the business afloat, organize leadership within and keep talents current to the needs of the business.
As the business evolves, capable hands will be needed in different departments to run effectively. Talents that could be delegated work responsibilities and would execute in the best way possible. Build the dream team that will execute the company’s plans at any given time. There can be incentives for talents that execute excellently.
Continuously build to expand the business. Expansion can come from introducing new products or product genres, services, location, etc. expansion can simply mean giving room to grow. To successfully build a long lasting business, a business must not remain comfortable where it is. Always push for expansion of some sort and of course that which the business can handle.
Ensure a positive cash flow at all times. It’s important to run your business with a healthy balance sheet i.e. positive cash flow always. This will foster expansion in different ways and at the least not running the business down. While expanding, balance growth and profitability with positive cash flow and always be investor ready. As the business grows, capital will be needed to facilitate expansion. Having a good line of credit will help prepare your business for eventual investment and help ease fund sourcing. Practicing effective cost cutting will also help with positive cash flow.