Business Growth: 5 Ways to Make Your Business More Competitive

Business Growth 5 Ways to Make Your Business More CompetitveIt’s a difficult order to make and keep your business competitive in today’s world. Prices keep rising, customers are hard to find and even harder to keep, and the technology required keeps changing.

It’s no wonder that 80 percent of firms go out of business in the first 18 months. Below are some of the most common reasons for this failure rate.

  1. Failure of Leadership
    Poor decisions occur throughout the professional world. Look at the result of poor decision-making for the sports heroes, Lance Armstrong or Mike Tyson. Start-up owners are just as likely to crash and burn in this same way. Although the publicity may not be the same, the results are. Poor decision-making and weak leadership lead to ultimate failure.
  2. Inability to Communicate Clearly and Concisely
    Many entrepreneurs work very hard to come up with points of differentiation from their competition, but then cannot communicate these differences in a clear, understandable and compelling way. They must learn to communicate using these three points:
  3. Starting Your Business for the Wrong Reasons
    Some of the worst reasons to start your own business are the following:
  • Be clear about who you are and what value you bring to the customer.
  • Be concise in your message.
  • Be compelling, using words that actively persuade customers to take the action you want them to take.
  • You want to make a lot of money
  • You want more time with your family
  • You won’t have to answer to anyone else

The reasons above are completely backward. Money comes slowly at first at with no predictable schedule. You will probably have very little time away from your business and you will be answering to bankers, accountants and customers all day, every day.

  1. Capital Is Insufficient
    Sufficient operating funds to keep the new business running is essential. Nearly all entrepreneurs underestimate the amount of start-up capital needed, along with an overestimate of revenue from sales. Remember, it will probably take one to two years to get the business going. You need enough to cover all costs, such rents, leases, salaries, etc.
  2. Failure to Take Advantage of New Financial Structures
    Financial solutions can help business owners afford voice, video and data equipment in a method different from traditional leasing.

    Companies like TAMCO are built as a rental agreement that is an operating expense (OPEX) lease that bundles all the related equipment into one convenient monthly payment. The major advantage is that it unifies communications and Information Technology equipment.

Growing your business is hard especially with the business world constantly changing and technology evolving. It is hard to compete with other businesses. However, if you follow the five tips above about what not to do will give you a competitive edge in this already competitive world.

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