Every year new successful products hit the market and we commonly see and know about those successful products. While these successful few are the result of effort and focus, these products and many failed products all started with good ideas. As a product innovator, you may believe all that is required is a good idea but there is much more required for commercial success.
Commercial success is not defined as a good idea, but as the ability to make a profit on the idea. Your early efforts to bring an idea to market must be focused on answering that key question of “can my idea make money?” For an idea to make money, a sufficient number of customers must be willing to pay a high enough price (when compared to the cost of producing and selling that product).
How do some small businesses manage to grow and thrive while others perennially struggle and miss opportunities that come their way? It appears the most successful business owners display some clear patterns and habits.
Here are 8 secrets for achieving growth even in a poor economy:
Grow to survive – Many small or local businesses assume it’s best to reduce offerings to survive tough times. While this seems intuitive, sometimes the answer is to do just the opposite – to grow. Before cutting back and shrinking your business, consider first whether additional funding might help.
Check your ego – You know your business inside and out, but that doesn’t make you an expert at running it. Smart business owners only know what they know. Don’t be afraid to ask for advice and then, take it.
Cash flow continues to be a major issue for the transport industry throughout 2014.
Trade credit is imperative to stimulate economic growth. Without it, small business in particular, does not have the working capital to run their business. However, slow payment of invoices restricts growth and has a negative effect on business confidence.
On average transport industry clients take 52.5 days to pay invoices. Typically, big business companies that employ over 500 people are the slowest to pay. On average they take 56 days to pay.
When you consider that wages must be paid weekly, fuel must be paid usually within 14 days and with lease payments on trucks and trailers there is a substantial gap between paying out all of these expenses and getting paid by clients.
The Australian manufacturing industry is facing tough times. While we have seen the highly publicised decisions of leading automotive companies, there are thousands of Australian manufacturing companies facing exactly the same issues.
These include exposure to international competition, the cost of labour in Australia, reduced overseas investment and the strong Australian dollar. All of these factors make it increasingly difficult to continue to be viable.
For businesses that will survive, maintaining a healthy cash flow will be a major consideration. Continue reading