4 WAYS TO CREATE A SUSTAINABLE BUSINESS MODEL

About three years ago, I and a friend decided to start a business selling women’s shoes around campus. We discussed briefly what we would like to do, got in contact with a distributor and went over to the warehouse and bought 120 pairs of high heels in bulk on the agreement that we would pay the other half of the money for the shoes when we had been able to sell 60% of the shoes. The business did not work out and we made magnificent losses. We didn’t bother to understand our market before getting into our business and we had no inventory management system in place. Since then I’ve worked with a couple of start-ups and wised up substantially about what features a business needs to be sustainable.

Learn How to Pivot

Having a business plan is the most efficient way to start a business up. However, the environment in which your business exists is naturally dynamic and a static plan will not survive the long-haul. In the face of changes, learn to pivot and adjust to the circumstances around; do not (I repeat do not) remain rigidly tied down to your business plan. Remember that when you originally drew up the business plan, you made certain assumptions may have changed.

To Fund or Not to Fund

Getting funding for your start-up is one of three pillars in ensuring sustainability. Many businesses do not survive because they do not have enough money to fund their operations.  But, getting funding without managing your finances could prove futile. Small businesses have a lot of room for growth and when this growth is not properly estimated and funded, businesses can easily grow bankrupt. If you do not have expedient knowledge of financial management try any of this financial software that could help you out. That being said, do not spend an excessive amount of time chasing after venture capitalist and angel investors. Whilst seeking funding form these private equity lenders, make sure to make time to meet with potential customers.

Product Development is Important

Funding is important but developing your product and your business model is also more important. At the early stages concentrate on making a minimum viable product. Keep the product light on features and the team of developers conveniently small. In the next stage, tailor the product to fit the market the best it can possible. This is a time to play around with features amongst a couple of customers known as early adopters.

The Importance of Marketing

Lastly, marketing is important and should not be overlooked. Immediately, your business might not have enough manpower or money to market physically. Luckily for you, these days, digital marketing is both cheaper and wider-reaching. Moreover, if you do not know how to start digital marketing, you only need to Google the topic and try a couple of tutorials out to see what method will be the fit for your business.

Sustaining your business is important so consider these things as you are managing your business. These tips were acquired from my personal experiences and may not necessarily be the exact cause for your circumstance so get to know your industry and your market well. Are there any other sustainability-related issues you have noticed that weren’t mentioned here? Let us know in the comments below.