Laying the foundation for developing a new business.

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Founding a business is a dream to many but it never comes easy to take the leap and start  one, since there are several things that need to be considered ahead of time. It starts with deciding what business to establish, market focus and how big it’s going to be before setting up a business plan that will succeed.
The first and the most important step in building a new company is deciding what is going to be sold and what product or service of value to offer to the existing market, that will make people to pay for it. It’s great to identify beforehand how large the market is, to capture the market and to execute business plans effectively.

It’s inevitable to invest more on skill and experience to build a business that will lead a product or service into the hands of customers. As first impression means everything, recruiting the right people who can deliver is vital in carrying the new startup to successful a future. Obviously, not every vacant position at a startup should be filled quickly as it could be overwhelming to the new business increasing expenses.

Instead, investing more to popularizing the company products and hiring those who are absolute a must have who will develop a solid plan to the startup is relevant. If funding is a challenge, as it always is in a new company, making employees co-founders will save the new business from financial stress. This methodology is growing in most African countries through sale of stock to equip a company financially.

Although starting a business is never easy, with well thought laid out plans, it is always possible to successfully establish a business that will sell on the market. Originally crafted and well executed approach of business idea can set any startup on the path to success. The important thing is to spend ample time planning through the business idea before spending any substantial finance.

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The same can apply when already established companies plan to further develop a new market for their existing products and services. A company may want to broaden its geographic base to include new customers, either within its home country or in international markets by expanding distribution channels.

Such market development growth strategy requires a working knowledge of the new markets and the ability to identify gaps in the marketplace, that can be addressed with the company’s product or service. A good example of such companies is Jumia Travel, which expanded to  various African countries including Ethiopia.

It developed itself growing through a market penetration strategy, one that is designed to give any company a greater percentage of the market share. This type of strategy usually brings competitive advantage through pricing, promotion, distribution and customer service. On the other hand, market penetration can be achieved by increasing customer usage through incentives targeting the existing and new customers.

Top-performing companies often maintain a dual focus meeting and exceeding profitable growth objectives and outperforming competitors. In order to achieve these goals, it is very important to have a strategic market plan and an efficient supply chain to deliver preferred products outperforming competition.

It is also vital that this strategic market plan addresses both internal and external activities. Such companies perform market research to find out customers’ needs and to provide better service than their competitors.

On the other hand, keeping track of what is happening within the global market is important to gather and track information on government regulations and policies concerning trade, technological advancements, current and future industry trends, as well as what competitors are doing to cope with the ever changing world. Collecting such information is for the sake of bettering service delivery and performance in the market.

Overall successful companies create a business which is customer orientated, that prioritize on the need of customers. Being aware of customer satisfaction in the services area does also require to create employee satisfaction. In the process, both customers and employees satisfaction is seen as a future success part, meaning if employees are presented with future perspectives of the company, then they would be truly motivated and engaged to create customer satisfaction and increase revenue of the company.

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