Businesses fail for may reasons. Lack of customer service, leadership and vision and strategic planning are the three primary reasons businesses fail. Whenever one of these things is not doing well business success is unduly affected.
Customer Service is essential as without it a business's capability to generate sales is adversely affected. You need to have employees who can understand the needs and wants of the customer. This encourages customer loyalty and retention. In addition to this, you need to have products and/or services that promote customer retention and/or serve a particular market niche. Loyalty programs can help preserve customer loyalty up to a point. Any product/service that attracts a particular customer segment can help increase loyalty. But it the combination of these elements that has a long lasting effect on keeping customers loyal and adding new clients.
Good Leadership is essential as it is the driving force within your organisation. It will determine the direction your organisation goes and how quickly it can accomplish its vision. This is because your leaders are responsible for managing your staff and implementing ideas, processes and systems that will lead them to the destination they envision for your organisation. Regular communication is important so it is in sync with your own vision, ideas and processes otherwise you may end up at a completely different places than the one you had intended.
Vision and Strategic Planning are the final cornerstone in this puzzle. This is because you can have all of the above but if you don't know where you are going you won't know where you will end up. Vision should be over arching, you should work out the end point you want to be at that correlates with your vision. Say for example, you want your business to focus on customer service (this is your niche) and that you want to have a five percent Return On Investment within five years (this is your end point). Your vision is related to customer service but your strategic plan is focused on the five percent Return on Investment, but your strategy will determine how you will get there. This in turn is related to your vision of being a customer service focused business.
Managing these three areas well will help make your business a success. Customer Service needs to be the focus of your organisation. This will help ensure your revenue continues to grow. Leadership and Vision are an integral part as well as they will make sure you are headed in the right direction. Keeping these three at the center of your business will help you and your business succeed.
Customer Service is essential as without it a business's capability to generate sales is adversely affected. You need to have employees who can understand the needs and wants of the customer. This encourages customer loyalty and retention. In addition to this, you need to have products and/or services that promote customer retention and/or serve a particular market niche. Loyalty programs can help preserve customer loyalty up to a point. Any product/service that attracts a particular customer segment can help increase loyalty. But it the combination of these elements that has a long lasting effect on keeping customers loyal and adding new clients.
Good Leadership is essential as it is the driving force within your organisation. It will determine the direction your organisation goes and how quickly it can accomplish its vision. This is because your leaders are responsible for managing your staff and implementing ideas, processes and systems that will lead them to the destination they envision for your organisation. Regular communication is important so it is in sync with your own vision, ideas and processes otherwise you may end up at a completely different places than the one you had intended.
Vision and Strategic Planning are the final cornerstone in this puzzle. This is because you can have all of the above but if you don't know where you are going you won't know where you will end up. Vision should be over arching, you should work out the end point you want to be at that correlates with your vision. Say for example, you want your business to focus on customer service (this is your niche) and that you want to have a five percent Return On Investment within five years (this is your end point). Your vision is related to customer service but your strategic plan is focused on the five percent Return on Investment, but your strategy will determine how you will get there. This in turn is related to your vision of being a customer service focused business.
Managing these three areas well will help make your business a success. Customer Service needs to be the focus of your organisation. This will help ensure your revenue continues to grow. Leadership and Vision are an integral part as well as they will make sure you are headed in the right direction. Keeping these three at the center of your business will help you and your business succeed.
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Read this article where you can find out all about reasons that businesses fail and how you can stop your business becoming another statistic.
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