It is said that 90 percent of startups or small businesses may fail within five years. This is virtually true as you may have seen many startups fall in the previous years. And truthfully, more small businesses will fail this year and the coming years.
One mantra that can help you as an entrepreneur to remain resilient in your business is to recognize that “Progress is a Process.” This mantra has enabled many entrepreneurs to continue striving even when their businesses are not making profits after a year or two.
An entrepreneur once said on twitter that business is like Beans and it requires a long time for Beans to be cooked in the fire. So, for a business to progress it requires various processes. Instead of concentrating on profit, put your efforts into the growth process.
Every business has its break-even point. It is only when the business is above the break-even point that profits are earned. It takes time for business to achieve this.
One business that is yet to make a profit and is well known in Africa is Jumia. Although profits are not earned after more than ten years of operation, the business is measuring its growth year-to-year.
If you see growth or progress as a process. It enables you to focus on the process rather than profit. What are some of the business progress to focus on? Let me take you through three business growth you should concentrate on.
Instead of focusing on profit, you should focus more on sales. The more sales you make, the faster you reach the break-even point of your business. One way to focus on sales growth is to have a structure that displays your business monthly sales. This will help you brainstorm ways to grow sales.
Many businesses that are yet to earn profit usually boast of their customer base. More customers mean more revenue for the entity. And eventually, more profits. Think of ways to meet customers expectations, have a good customer service program and always observe customer perception.
As your business is yet to earn a profit, think of cash, cash, and cash. Getting cash to grow your business should be more important to you. I wrote about cash is king mantra. Knowing the importance of cash will help you see profit in a different light. Also, ensure you measure your cash growth on a monthly basis.
Furthermore, check if the business cash can meet daily operational expenses, buy more inventories, and invest the remaining in a mutual fund or other short and long term investment platforms. In addition, think of ways to cut down operational expenses.
Profit is not the only important aspect of a business. The business mantra “progress is a process,” when nurture in your heart, will help you focus on other aspects of progress and growth rather than profit. This will have a double effect. That is, keeping your business and eventually earning the profits you deserved.