There are certain factors which I think a startup company must possess and practice to overcome the storm of fierce competition which it will certainly face.
Your output must add value to your customers
Customer retention is an important phenomenon that businesses watch closely. A successful company has its customers return again and again for its product or service. This is achieved if the customers think it is worth consuming again that company’s output. They must believe that output is of value to them and solves their problem, fills their belly or quenches their thirst. If your output as a company or business does not add value to your consumers your business is not going to be around for long.
Have at least as much asset as your debt
An inexperienced business person usually chooses to use their asset to produce their output. They strain their business by not operating if they do not have the cash or do not own inventories. They are hindering themselves by not making use of a genius resource, which is debt. You do not have to own all the cash that you or your business needs to keep its wheels turning - so borrow money. A drawback of this mechanism is that experienced business people over use it. Once you become aware of this mechanism and are well versed on how it works make sure you do not go over edge and make your business not viable to continue to operate.
Have clients; engineer your output to be consumed by numerous varied customers
A major drawback of the activities of people who lack business knowhow is that they do not target to have their output consumed by numerous varied customers. For any business to be viable customers are key, so engineer your output to be consumed by many clients multiple times.
Yosief K. Afewerki
Financial Consultant
