Starting and growing a business is impossible without making clever financial decisions and planning long term. To increase your personal and entrepreneurial income, you will need to plan for rainy days, and continue improving the value of your business. From investing in the latest technologies to spending on research and development, branding, and marketing, there are several tasks you will have to take care of before you could call yourself a success. Considering your options and getting the most value for your money is a good principle that can take you a long way. Find out more about building business equity below.
1. Property Investment & Location
The first and most important decision you will have to make when you establish your business is the area you want to work in. If you choose your location right, you can get closer to your customers than other companies. Consider buying your business premises on a mortgage instead of leasing or renting it, so you can build up assets and equity that you can use as a security for future investments.
Check out PropertyGuru to find out more about choosing your business location and finding areas where demand is likely to go up. Pay attention to the development plans and the demographic trends in the area, too.
2. Focusing On Growing Markets
Once you know what you would like to do as a business owner, you will have to specialize in areas that are on the rise. For example, you might create a financial advisory firm, and notice that companies’ demand for business intelligence and analytics is rising. This gives you an opportunity to tailor your business to your potential customers’ needs, and offer more than other companies. You can provide financial analytics, audits, and market predictions for free on a monthly contract, and secure long term business.
3. Building A Talent Pool
Investment in your own and your employees’ skills and qualification is also important. One of the greatest assets in your company is knowledge. As it is intangible, you can use it over and over again to create a competitive advantage. The better training you provide your workers the higher their job satisfaction will be and the more likely you will be to retain talent. This will reduce your recruitment and human resources costs, while making sure that your customers are getting the best possible service.
4. Maintaining Your Reputation
Another important asset in your startup business is your reputation. You need to focus on building and maintaining it, or you will lose out. Reputation management is an important task, and with the rise of social media and internet review site use, you need to monitor your brand’s image and customer attitudes. Make sure that you conduct customer satisfaction surveys and make improvements based on the feedback from your market. This will not only help you secure a greater market share, but also maintain your reputation.
5. Growing Your Market
Instead of waiting for your customers to walk through the door or search for the products you have to offer, you might want to grow your market by creating demand. When Apple came out with the idea of the iPad, nobody had a clear demand for the product, as it didn’t exist. Build an appreciation and excitement about your new products or services, and show your potential customers how it can make their lives easier. This will help you grow your market during economic downturns, and when there is an increased competition.
6. Minimizing Running Costs
If you buy your production equipment technology and your business premises, you will save on regular monthly outgoings. It is important that you minimize your business costs, and focus on what is necessary, instead of splashing out. This attitude will help you through quiet times, and allow you to spend more money on growing your business long term. Compare property and commercial mortgage prices, finance options, and keep your regular outgoings to the minimum.
7. Improving Productivity Every Day
Successful business owners don’t sit tight and run the same operation for years. They actively seek opportunities to improve their business and productivity. They encourage their employees to learn new skills, provide them with the essential tools and training, and invest in future technologies to serve their customers better. You need to look for ways of serving your customers better, creating more value, and increasing your profitability.
8. New Technologies
To build long term assets, you will also have to look out for opportunities to invest in new technologies. This means signing up for industry magazines, attending conferences, and keeping an eye on the latest publications. You might be the first company to use one particular technique or machinery in your country, and provide a better quality service for a lower cost to the customers, and this will help you position yourself on the market as a leader and not a follower.
9. Research & Development
The best investment you can make in your business is in research and development. The good news is that some of your investment will give you a tax rebate, while helping you stay competitive on the market. You might think that R&D is only relevant to chemical and drug companies, but it is not. You can conduct a market research, customer satisfaction survey, or do a trial of releasing a new product. In the end, you will be presented with valuable information about your business position which - itself - is a business asset. If you invent a new technology or working method, make sure that you protect your copyright, so other companies cannot use it without your authorization.
Enhance Your Equity
Whether you are starting a consultancy firm or a manufacturing business, you need to focus on building value in your venture. Focus on future technologies, business intelligence, and competencies that will improve your productivity and profitability long term. Reduce your running costs and increase the value delivered to your customers, so you can build a valuable and reputable brand that focuses on customer satisfaction and continuous improvements that create a competitive advantage.
I hope you enjoyed this article about how to build equity in your new startup company and increase your chances of success.
Interested in more articles about growing your new business?
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