For a business to last a long time, it must be sustainable. However, some entrepreneurs lack thorough knowledge of sustainability. This makes it extremely difficult to build a sustainable business.
Although the path is not an easy one, significantly as a firm expands and becomes big, the business, on the other hand, has much to gain in the long run. A sustainable business survives and rewards its owners and shareholders.
According to Peter Bankole, the Director of Enterprise Development Centre, Pan-African University, here are the ten ways to build a sustainable business.
1. Opportunity recognition
Knowledge is essential when it comes to recognising opportunities. Although expertise will assist you in identifying opportunities, not all chances are feasible.
Therefore, you must have a nose for problems to spot an opportunity, as these are sometimes embedded in problems. Indirectly, you are satisfying a need while attempting to solve the problem.
So, when identifying opportunities, take a demand-driven approach. You need to solve a problem to fulfil demand.
2. Cooperate governance
This is where your board of directors plays a role. They act as watchdogs, ensuring that you and your business choices are made in the company’s best interests.
Having them will help you be accountable no matter what. The executive and non-executive boards of directors are examples of cooperative governance.
The executive board of directors is an administrative body chosen by business shareholders to determine strategy and supervise the company. These individuals are also employees of the organisation.
A non-executive director, on the other hand, is a member of the board of directors of the company. The non-executive members are not employees; hence, they are not involved in its day-to-day operations.
They act as independent advisors and are involved in policymaking and planning. Their responsibilities generally include monitoring executive directors and working in the interest of corporate stakeholders.
Setting the stage for your business development is what scaling a business entails. To do this effectively, you need to know your capacity and capability.
This will help you develop without restriction. Therefore, have a plan in place for growing your business. In business, you may either scale up or down.
4. Go digital
The entire world has become digital. You need to integrate technology into your business to keep it running. Otherwise, you’re setting yourself up to fail.
Many businesses, however, are slipping behind as the world goes digital. According to a report, 30% of organisations effectively manage a digital transformation.
This will only grow more challenging as digital technologies advance and customers abandon businesses that do not function online.
Therefore, organisations must embrace and adapt to digital to compete and prosper. Going digital will enable you to add new value to your business models and improve customer experiences and internal capabilities.
No man or entrepreneur is an island. You must collaborate with others to sustain and keep your business afloat.
It is a powerful tool to employ. The relationship you make and the many ways you collaborate with people you meet may help you grow your business.
By leveraging your internal and external collaboration, you develop ideas, identify solutions, and accomplish common company goals. This, in turn, will promote open, honest, and fruitful communication.
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Reinvesting more in your business is one way to ensure its survival and development. Apart from investing time, learn to reinvest your profit into the business.
Making millions does not mean you need to relent and indulge in luxuries. When a business starts to make money, you have only one choice – put the profits into the business by reinvesting to yield more and sustain it.
7. Problem-solving mindset
Problems are unavoidable, and no business is immune to them. A problem-solving mentality will assist you in identifying and resolving issues. This way, you become not only an asset for your business but also a valuable resource for friends, family, and coworkers by providing answers to difficulties.
Also, this skill will assist you in overcoming various business challenges and making more money. If your business is not solving a problem, it will go into extinction.
8. Belong to an ecosystem
Don’t be a jack of all crafts who knows nothing. Define your specialisation since it will help people associate you with a specific group.
Every market has its community. This will promote networking, business development, and personal development, which may be used to expand and sustain your business.
9. Day one mindset
Never forget where you started. Always keep in mind why you started your company. This will keep you in check and going even when you’re feeling down.
Also, invest the same energy you did when your business was just an idea. Don’t relax, don’t relapse.
10. Succession planning
From the day you start your business, have a picture of who your successor will be. You don’t have to wait until the company is large to think about who will take over.
The individual doesn’t need to be a family member as long as they are capable. If you don’t have one yet, find and place the person in the post one year before retiring. During this period, sit back and supervise.