Big Questions from Business Owners Like You
On The Money Show with Bruce Whitfield, Pavlo Phitidis set out to answer some big questions from business owners, like you:
Martin from Randburg asked: How do you know if your big idea is a good idea, or not?
Before you begin implementing your big idea as a business owner, you should consider:
- Where did this idea come from? Did this idea evolve from something you’ve experienced, or did you pick up on a tip when someone spoke to you about something related to your idea?
- As a business owner, you must consider the long-term viability of your idea, and find out if you truly solving a problem by implementing this idea.
- Is the problem you intend to solve big enough for you to create a profitable solution? Does your intended target market experience this problem consistently enough?
- Who are you solving a problem for, and just how big is your intended market? How will you reach them?
- Who else is solving this problem and how will you, as a business owner, solve it differently?
Once you’ve begun implementing your business idea, you’ll need to continue considering several factors, with a clear mind, as you grow. As a business owner, you may need to adapt when your idea doesn’t work:
- Are your customers returning to buy from you again? Repeat sales are an important part of growing your business.
- If your product is a once-off type of sale, are your customers willing to provide you with references, testimonials, or to refer others to you?
- Your business’ rate of growth is a key indicator of progress and momentum. At 5 years in, you should be growing at more than 20% per annum. At 10 years in, you need to be growing at 35% or more. And, at 15 years in, your business needs to be consistently growing by 25% or more.
- Consider how you are spending your time: if what you do every day hasn’t changed since you started, it’s time to adapt the way you run your business or change your business entirely.
Sicelo from Benoni asked: How do you decide whether to invest in a piece of equipment?
As a business owner, big investments into equipment are essential. Before you buy that equipment, however, you must consider:
- The timing of your purchase: Is now a good time for your business to be buying equipment? Is the exchange rate favourable if you’re purchasing imported equipment?
- The capability, skills, and support your business needs to make full use of the equipment.
- Have you run the numbers? How will the cost of the equipment be offset by your business’ ability to grow?
- Your customer base: if you have numerous consistent customers, it’ll be easier to survive the bump if one falls away. But, if you have one big customer upon whom you rely for a large portion of your income, it may be a little too dangerous to make a big investment into equipment right now.
Andrew from Lone Hill asked: How do you get the right people to do the right thing, at the right time?
Employing people is vital for your business’ growth but, as a business owner, it may feel like you must do everything yourself, to ensure that it’s done correctly. Here’s how to get past that:
- Don’t employ people to perform a job. Rather, employ operators who can plug in to your business.
- To do that, however, you must build your business so that it’s operator-ready. Build your business systems so that you can teach, train, and measure, each part of it, and ensure that those systems are driven by the experience you want your customers to have.
Are you a business owner with a burning question? Aurik can help you answer them, as we help you build your business into an asset of value.