In the majority of cases, the success or failure of a business depends on the knowledge of the market. Having clarity on the consequences of an action can take you towards success in the fastest possible manner. Keeping that in mind, here are 10 essential business tips for you to help you run a business successfully.
1. Hire the right person at the right time
A go-getter kind of person with expertise, strong network and deep industry knowledge can prove to be a disaster for the growth of your business if he is inducted at the wrong phase of the product life cycle. There are the three stages of the commercialization process and there should be different criteria for selecting people at each stage. Here is how to select the right kind of individual for the three stages of business development:
Scouting: Scouting is the starting stage of a business where business development is the prime concern and focus. Scouting may include identifying the points of leverage and providing the internal team with the feedback on trends. During this phase, a company should hire people that have the ability to work with the product and engineering teams in tandem.
Testing: At this point, the company knows the market perceptions and can provide scalable inputs to their team for further expansion of the business. Individuals with analytical skills should be hired extensively at this stage of business as they can set up a framework and examine the data for scaling up the business further.
Scaling: This is the phase where the data collected from the earlier phases is used to validate the further course of development. This phase witnesses the replication of the successful deals, brought by the business development team and the formation of a support structure.
2. Business development is not sales
The process of business development creates and identifies the partnerships to bring in the revenues, increase the distribution of the product and enhance the product portfolio whereas the sales department solely focuses on driving the revenue. Therefore, the team you are hiring for business development must not always be sales oriented.
3. Post-deal management is crucial
Accountability and proactive management are the two major factors that contribute towards making a deal successfully. If it is not possible for you to allocate the necessary resources that will support a deal, think twice before making a commitment.
4. Quantitative vs. Qualitative
For some businesses, the qualitative value proposition is the only criteria for business development. This makes it difficult for such businesses to survive in the long run.
Businesses promising to offer just better user experience and engagement are not likely to get good returns on their investment and this is true even in the case of a likable product or service. Businesses should work towards deriving the perfect mix of quantitative and qualitative value approach with key ingredients that result in lower costs and more customers.
5. Internal support system is essential for business development
A business development team should be able to engage the internal resources in order to meet the expectations and goals of the business. The lack of internal support system can also initiate the ugly blame game if things go haywire.
6. Establish a framework for assessing opportunities
In order to ensure support from the entire strata of the team, it is very important for every team member to understand his key role and the responsibility attached to it. Before a deal is signed, its importance for the company and impact on the revenue stream must be clear in the minds of team members that are responsible for implementing things.
7. There should be no legal issues
A legal agreement codifies a business arrangement and includes terms of what will happen if things do not work out well. In order to assess the business risk vis-à-vis the business opportunity, the business development and legal counsel need to work in tandem.
Apart from having a great product or service, making a business profitable requires coordination among the team members and understanding of the market. Bringing in the right person at the right stage and following the above-mentioned guidelines will surely help you keep your business on the right track.
John Chen is a travel writer currently located in Bangkok, Thailand. He likes writing about Thailand and he writes not only about traveling in Thailand, but also about business, culture, education economy and food. If you want to start your own business in Bangkok and need an office, visit Servcorp.