We have seen many big companies collapse in the current economy, but others continue to grow from strength to strength. Sateesh Kamath, the Chief Finance Officer (CFO) at Safaricom, shares tips on creating a lasting enterprise.
1. Work on the basics
The first thing you need to do is to define what your purpose is to ensure long term focus of all those involved in the business. Ensure that everyone is clear on what that purpose is and how to achieve it.
Then create a conducive environment, where passionate and purpose driven employees and partners can thrive.
Work on a business model that is sustainable, profitable and more importantly, priced within reach of your target market. You must not forget to carry along the community around you. No business has ever succeeded in a failed society.
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2. Make customers happy
The key to having happy customers who will refer others to your business is putting customer and purpose at the centre of all decision making. We have learned that the best way to keep customers, staff and partners happy is being true to our purpose, and our purpose is transforming lives. Deliver relevant products and ensure that you are positively impacting those you interact with, whether in the market place or by simply responding to customer queries. When you purpose to meet the needs of those who use your services or products, the result is not just a satisfied customer; you also enjoy increased business.
3. Enhance your operational efficiency
Operational efficiency is key to the growth of any business. You cannot grow a business by being wasteful, but at the same time, neither can you do so by under investing. Managing costs means getting more productive with the same costs. By being cost efficient, you save precious resources that help you stay ahead of the curve when it comes to investing in new product lines and areas.
4. Hire passionate employees
It been proven time and again that the key difference between a hugely successful business and others is the quality of people you employ.
Passionate employees driven by clear purpose will constantly challenge themselves to do more, therefore ensuring the success of the organisation in so doing, their own success. Treat them well, motivate them and give them incentives, and they will in turn treat your customers well and do their best in growing your business.
5. Have a connection with the community
There is a growing global movement that believes that businesses cannot succeed when the societies around them fail.
You need to ensure that as a business, you are playing a role in building the community that is around you. Do not just aim to profit from them, aim to also give back and make an impact. Business will only grow if the communities we operate in prosper socially and economically, and part of this is also dependent on the conservation of our environment.
6. Partner with others
No business is an island, and partnering with others can yield more results than simply trying to outdo every other business. For great things to happen, people must come together.
One key lesson we have learned though our 17-year journey is that for us to succeed, we must be able to learn from those around us. We have consciously built win-win relationships with many partners in business technology, financial institutions, NGOs and service providers.
7. Embrace technology
The rapid progress in IT has opened up several new possibilities for technology to be used for strategic or operational advantages.
The most immediate is the possibility of a business to serve millions of customers miles away by using technology to expand its reach. Technology has also made it possible for businesses to take advantage of online solutions to increase productivity.
8. Utilise tax breaks
There are a number of tax breaks available, depending on the business and the activities one is carrying out. These incentives are given to businesses in order to encourage investment and help businesses grow, which spurs economic growth. To get the best out of this, get professional advice from tax experts who will help understand which tax breaks are available for you and how you can utilise them.
9. Have integrity
Your business practices need to be beyond reproach every step of the way as you grow. Credibility is built over time, and one of the best ways to have loyal customers and build your customer base is to develop a reputation for ethical practices.
This guarantees that there you will have a business to run tomorrow. Taking shortcuts is a sure way to guarantee that your business will implode in future.
