10 Key Learnings Entrepreneurs Should Keep In Mind To Accelerate Growth In 2021
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In order for a business to thrive in emerging markets, decision-makers must acknowledge competition that grows at an exponential rate in today’s digital age. Businesses no longer have the luxury of being the sole provider for their goods and services. Similar to any other global crisis, 2020 was a challenging year for the world economy, which is why it is vital that entrepreneurs exercise following learnings to ensure the growth and sustainability of their business in 2021.
Re-definable organizational structure: Organizational design is imperative for businesses as it is crucial to how a business operates and performs. Problems that arise with the structure of management can trickle down the chain of command and affect salespeople who work communicate directly with customers. As the business grows, products begin to change. The business needs to adapt and restructure. The market is constantly changing therefore the business must be adaptable.
Develop core competencies: In order to be a cost leader in the low-end segment, one must focus on improving the automation level and creating as much awareness as possible. To be a niche differentiator in the high-end segment it is imperative to improve product/service design every year and invest in human resource.
Transparent performance evaluation system consonant: Set up a performance evaluation system consonant along with every reward systems. Implement a robust execution assessment framework which ought to include: extensive screening, as intense yet achievable quantifiable targets structured to incorporate dynamic interest of those being assessed.
Employee retention: Government, institutions and organizations across the world are emphasizing on the importance of employee retention. For any company loss of workforce means loss of production and hence profitability. It is therefore far more expensive to hire a new recruit and orient and train him/her than it would be to educate and train an existing employee to take on a more diverse workload.
Indisputable compliance programs: Ethics and compliance policies need to be applied effectively across all departments and sections of an organization. The cumulative sum of executives, middle management, top management, chairperson and the board of directors constitutes representatives that act as company ambassadors. This is a pretty substantial spectrum and therefore offers several variables which must be controlled at all time.
Double down: Businesses must make the best use of capital by investing in core products. The risk and cost of acquiring smaller, niche companies seldom result in profit. Alternatively, investing capital in research and development of new products is also not a realistic approach to tackle the problem of declining sales growth because it will require years of expenditures and testing before new products reach consumers, and personal tastes and customer needs are volatile.
Establish digital synergy: A company needs to reel back its capital if it is engaged in infrastructure before the business starts to bleed to a point where it is at the threat of going under. With the current socio-political climate, rechanneling a company’s to develop digital synergy is all the more important. The investment can be channelled into data analytics and offering discounting goods and services.
Patience is key: In addition to effectively executing digital transformation, it is also imperative that a business focuses on delivering a well-designed product. Postponing product launch can be an opportunity to focus on product development and will allow entrepreneurs to make crucial strategic decisions regarding factors like marketing and labour. Constructing a new time frame can help businesses circumvent quality issues.
Generate value: In the current market climate, it is very easy to lose perspective, and many businesses make the mistake of focusing on short term profits. Budding entrepreneurs must focus on developing the value of the product/service without being sidetracked by every fluctuation in the revenue stream.
Focus on free trade approach: The current political climate is not conducive for-profit maximization but an entrepreneur must remember that it a free-trade economy is the most stable and prosperous institution.