Business survival is of utmost importance for most companies. Even with superior products, a lack of profits can devastate even well-established firms.
Staying afloat as a business does require doing something, but that does not translate to long-term success. To achieve long-term success, your focus must change from simply surviving to marketing your company.
1. Profitability
Profitability is critical to the survival of any business, as its income and expenses determine how much profit can be earned each month, with results recorded in official books as an indicator of financial health and operational efficiency.
While surviving is great, entrepreneurs should avoid staying in survival mode too long as this could lead to other problems, such as market share loss. To do this, entrepreneurs can analyze their competitors’ strengths and weaknesses to develop strategies that maximize profits while avoiding costly errors that could cost more in the long run.
2. Reliability
Business survival means your organization can pay its bills, potentially generate profits, and position itself for a secure future.
Remember that taking calculated risks is vital to creating a promising future, so avoid giving in to fear or other emotional responses that prevent you from following your passions. Mismanaging risk can include overreacting to low risks, disregarding actual threats, and becoming too focused on short-term considerations.
Note that even a seemingly reliable business can be devastated by an emergency, so having a contingency plan and emergency funds aside to assist during tough times is crucial.
3. Growth
Staying afloat as a business means paying bills and possibly turning a profit, while growing can make your company more competitive in your industry and increase market presence. Growth strategies may include customer retention initiatives and digital transformation options; competitors’ strengths and weaknesses must also be carefully considered so benchmarks for future success can be set accordingly.
Financial consultant John Gillespie likens businesses in survival mode to critical-care patients, suggesting they’re vulnerable and subject to unpredictable ups and downs. To prepare themselves for future growth and stability, Gillespie suggests businesses move from survival mode by investing their profits back into marketing, research & development projects, or other projects, enabling growth. However, this doesn’t happen quickly and requires proper training and access to expert advice.
4. Reputation
Fashion brands, video game developers, and technology firms often start as businesses with innovative ideas that promise to revolutionize a specific market. But offering groundbreaking products or services alone won’t ensure business survival; diversifying revenue sources is also necessary for business success.
What happens after an organization is founded is up to them; keeping expenses low, prioritizing customer satisfaction, and reinvesting profits into the business will all play an essential role in long-term success.
Successful companies also prepare themselves financially for unexpected costs, creating an emergency fund in emergencies. While existing is one level of success, true greatness lies in positioning oneself for an optimal future with proper planning and guidance from advisors.
5. Sustainability
Sustainability is an umbrella term encompassing three pillars – environmental, social, and economic. From an environmental standpoint, sustainability refers to efforts to limit natural resource exploitation and pollution.
Socially, sustainable efforts aim to promote an equitable distribution of wealth while giving access to quality food, water, and shelter for all. Additionally, this pillar includes developing social services like schools and healthcare facilities.
To achieve sustainability in business, one must reduce unnecessary costs while increasing efficiency. Investing in employees and communicating regularly with them to ensure everyone understands what is expected from them will also keep employees motivated during the survival stage. Furthermore, be sure you have good legal advice and an accountant on board who can offer guidance.
