With so many “experts” saying how simple it is to grow a business, then there would be more Filipino entrepreneurs, right?
While we highly encourage making your savings work for you (kaysa tulog lang ang pera sa bangko), we also advocate for being realistic about your expectations when it comes to growing a business.
With almost 30 years of advising our clients on their businesses, especially when they come to us for financing, we’ve observed that there are four factors that could mean the success (or failure) of an SME or even large enterprises.
Here are 4 reality checkpoints that are worth taking to make sure your negosyo continues to flourish:
1. Does your business have real sales growth?
Selling your product takes top priority over everything when it comes to business growth. And not just making sales but making sales in less time.
Sales growth = more money in your pocket = more opportunities to reinvest and grow.
Avoid overcomplicating your strategy and focus on:
- Developing a fast-selling product
- Finding your target market
- Increasing your potential client network
If you’re still not growing after six months of trying, revisit your cash flow and see whether it’s still worth weathering the situation.
2. Are you working hard or about to burnout?
There’s a difference between hustling to build a business versus just working yourself to the ground.
The tendency when starting out is that you’ll want to do everything yourself because:
1. You want to oversee things since it’s your hard-earned money on the line (and that’s understandable).
2. You might not have enough staff because you’re not willing to spend more at this point
3. You prefer to work on your own terms and struggle with delegating tasks to other people
Entrepreneurs get more burnt out when they don’t feel or see any of their hard work pay off. “Work harder, not smarter” sabi nga nila.
Our practical advice is: As soon as you have the budget to expand your team, do it. You can hire people directly or hire contractors to help with everyday tasks.
3. Do customers care about your business’ mission and vision?
The quick and real answer is, no.
This is especially true for potential customers who have yet to try what you have to offer.
Remember, customers are after their own satisfaction and will only care for a product or service that supports what they also value. So instead of pitching yourself and what you can do for them, highlight their benefit from your business and make that your message.
This advice is more for the marketing side of your business:
You already have so many competitors offering similar products. Why should customers buy from you?
If you still believe that you deserve your potential customers’ attention without making any changes, then you might lose them. No additional customers, no sales growth (refer to item 1).
4. There’s no need to rush naman ‘di ba?
No and yes.
No, because rushing into something you haven’t really planned for is a bad idea, BUT…
Yes, you need to make the move of growing your business as soon as the opportunity presents itself.
Part of being an entrepreneur is knowing the value of taking risks. The longer you put off getting started, the longer it will take you to reach success.
It’s ALWAYS better to start before you think you’re ready than it is to wait for the supposedly “perfect” conditions.
Don’t have enough money to increase your staff or scale up production?
There are financing solutions for that, especially now. Existing businesses that have been running for three years have high chances of getting business loans to grow. You can even look into using current assets like your car or a vacant lot to fund your expansion.
Intimidated with promoting your business?
You’ve already had practice whenever you use Facebook or Instagram to post anything. Why not do it to make money? Plus, you can learn almost anything from the Internet!
You want to focus on other things other than your business?
Of course, you can still do that but you need a fixed level of commitment to really grow, make profits, and develop your products. Ano ang priorities mo?
In summary, be honest, objective, and realistic about your situation to make clear and concise decisions about your next moves.
Should you need help with a business loan, connect with us via Messenger, email, or visit one of our 70 locations all over the Philippines.