It may not be so obvious that while a large number of businesses are coming up, a substantial number are also dying off. Despite the various economic and social challenges across the economy and the globe, entrepreneurs ought to thrive towards business sustainability and also take conscious measures to ensure the growth of their business. The metrics of business sustainability involves meeting the needs of the society through appropriate products and services.
A business is successful when it interacts with the environment successfully and satisfies its customers on a long-term basis. There is a difference between a company having a sustainability plan and for a business to actually be sustainable and you could also integrate some sustainability measures into your operations if you have no existing one. Here are some strategies to harness in order to build a sustainable business:
Make an appropriate choice of product and market: Build a product, test it, make some tweaks and ensure the market potential is feasible and profitable. Based on the reviews you get from your customers after using your product and services, make adjustments to ensure you offer the best to your paying customers.
Ensure resources are adequate to pull through before and after a breakeven: Resources must be adequate to provide the product to meet the needs of the market. Break-even analysis depends on several variables: It could be the Selling Price per Unit of a product or the Total Fixed Costs required to produce the first unit of a product or the Variable Unit costs that vary directly with the production of one additional unit. This could be achieved through an effective budgeting and control system.
Exercise the capabilities to manage and co-ordinate the use of the available resources and talent to meet your customers’ needs: This could be achieved through the establishment of feasible goals, business strategy and Key Performance Indicators: This would ensure you stay focused on what you what to achieve as a team and as a company. Businesses fail as a result of poor coordination of the internal operations of the organization and inabilities to manage finance properly. Ensure all resources used must be accounted for. Set targets, if it fails change strategies and methods of execution. Also, invest in talent capacity, having in mind that a good business is as good as the employees.
To be continued
