HOW BUSINESSES START TO GROW RAPIDLY
INTRODUCTION
All businessmen start their businesses with one major objective, that is, business growth in terms of finance and there are other business objectives as well. There are some businesses that they have financially grown very quickly and others are slowly growing while some other businesses collapsed. Formal education teaches many strategies to grow businesses. But we cannot see any tangible growth in Sri Lankan businesses. Even though we have plenty of educated graduates and other scholars, the situation is getting further and further deteriorated. This article talks about this issue in a different perspective.
BUSINESS GROWTH
Business growth can be explained through different criteria. It can be financially, market share, market knowledge, new business development or any other criteria. Here we focus on financial growth only. Every businessman try to achieve financial stability/ growth in their businesses. A business starts with a very small capital, within few years, jumped into very larger scale business with larger capital component. This is the dream of any business owner.
Current strategies followed by businessmen
To achieve this financial growth, business management education teaches us many strategies. But the problem is still they are trying without questioning fundamentals that they have learnt. Because, education has taught us to believe what education says and then act on it. Then what happen is, our students believe what education teaches us, without self-exploring these subjects. Therefore here we have to come into strong conclusion that we have to adjust current business fundamentals according to the realities of current businesses.
HOW BUSINESSES ACHIEVE SUCCESS?
We can see there are many businesses in the market have achieved success. But the problem is, how they have achieved that success. Once scholars study this context, they found many reasons for these success. They thought it is about the right product, right place, good quality products, people management, technology and many other practices. But here the confusion is, managers apply these practices but still no any positive results. Here the question is whether above practices are right or wrong.
The answer is all above practices are right but the way we have understood and the way we have practiced those principles in the businesses are wrong.
Once we study all successful businesses, it seems all theses businesses have achieved financial success in a gradual manner. These businesses have developed step by step manner. This is what education teaches us. Even financially grown businessman also think that they have grown their businesses in a gradual manner. But with 95% of businesses, this is not the reality. If we closely study, these financially grown businesses, one major fundamental can be identified. That key point is, one day of their business history, they have received a bigger order or a financially strong customer for their businesses, and from that point onwards, they have started growing their business financially. If they couldn’t get that particular customer or that order, forever they stay small or medium scale businesses without growing their business.
Therefore every businessmen need to strongly understand this principle. Once you start your business, you need to find a strong customer and need to capture value from that customer for a sufficient period of time. With this your businesses become financially sound and business becomes very well known. If we listen to stories from successful businessmen, most of the time they do not reveal this business turning point or they talk about it without any gravity. The reason is, sometime they are not aware about the real reason of their financial success or if they reveal that point, that will really waterdown their motivational story. So they keep on talking other business growth strategies and how they were dedicated for their business throughout the history.
SUMMERY
This article talks about a business dilemma faced by our business community. Every businessman wants to drive their businesses towards financial success, but only very few drive their businesses towards success. Therefore we need to understand there is a problem in our business education. Because how many things our managers learn though business management education, every years there are business management workshop organised by companies for their employees, but still, we cannot see many developed business. The answer is, most of the financially grown businesses, have started achieving their financial success from a particular point. That is in their business history, at a particular point they have received a larger order or a larger scale customer. With that order, the business has received a sound financial position. If any business have not received such sudden order or a customer, that business may be still lagging behind or struggling. Therefore businesses need to understand this fundamental and be tactful to find a customer who can change the business upside down financially.