How To Keep Your Business Running
The whole essence of starting a business is that you want something that generates income for you on a regular basis. However, most business hardly survives to the point where the income becomes regular. Most Business die not because the idea failed but because the owner of the idea got exhausted.
My experience, as an entrepreneur both as a business owner and as a scholar, is that most entrepreneurs seem to have more than one idea and the moment one is instituted, they are so eager to move to the next. This is not such a bad thing only that it can defeat the whole essence of starting a business in the first place. They get overwhelmed, overworked and soon they lose interest all together.
Here is a short story:
There were two villages side by side which had water supply problems. There was a stream that ran through the boarders of these villages but it was quite a distance to where the villagers resided.
There were two business men one in each of these villages and they both got an idea of investing in tap water and bring the stream into their respective village.
Business Man “A” laid pipes that led the stream water to a tap in front of his house and there people came to fetch water and paid him. He was making good money and soon he started investing in agriculture. Eventually, he overworked himself trying to maintain both businesses then he fell sick, so sick that he couldn’t attend to either of his businesses and both died and he became broke.
Business man “B” also laid pipes and got a tap in front of his house where people paid to fetch. Soon he had enough money to lay pipes to strategic locations in the village, he employed people to man the taps and collected money. He also went into agriculture but he employed people to run the farm; he had poultry boys, those that ploughed, planted and harvested for him while all he does was to supervise both businesses. He was not overworked, and even when he was ill as nature demands, his money kept coming in because he had put a system in place to ensure that.
So what kind of an entrepreneur would you rather be? The one that does all the work and gets overworked or the one that puts system in place and money keeps coming whether or not he is there?
Entrepreneurs get overworked because the fail to put system in place to ensure otherwise. As an entrepreneur, ideas will keep coming but the only way you would not run yourself to ground is to employed people. The idea of “a one man business” is not that you run the business all alone, time has gone pass that era “of man can do it all”, you have to get hands to assist you.
It might seem expensive at first to employ hands or create a system, yes, it might deplete your profit at the initial stage but soon your profit will grow astronomically as your production increases with the more hands you have and a system that works.
Imagine a peanut burger maker that is able to make 10kg a day but with a demand of 25kg/day.
1 create a system: If he is able to split the process into say three stages. 1. Mixing of the ingredients, 2. Combining recipe with peanut and frying 3. Packaging and Distribution.
2 employ people: To preserve his secret recipe, he could insist on doing step one alone and employed two other people to man the two other stages.
In no time, without being overworked his output will quadruple producing over 40kg/day (increasing economies of scale), which allows him to meet current daily demands and at the same time open his business to new markets. Read Your time your life
Do you know the beauty of creating a system that works?
- You get to have more man hours (Read Your time your life; link above)
- You enjoy increasing economies of scale
- You can produce more, be more efficient, better quality, have more business outlets and multiple your source of income
- You do less and earn more
- Gives room for your creative thinking
To sustain your small business or to grow it, you have to start thinking of employing more hands and creating a system that works. That’s how to keep your business running.