Enterprise

Business growth services key investment in start-up success

Boss

Business development services like staff training is important for small as well as larger firms. PHOTO | FILE

Last week, I met one of my business teachers who quit teaching to start a consultancy. As we chatted, he kept lamenting the high number of potential businesses around that are stuck on the ground because their owners don’t want to go an extra mile to seek professional advice.

As I reflected on the discussion, it occurred to me how most business people view services such as staff training, product development and market research as an expense rather than an investment. It is not surprising for a business person to spend Sh1 million on business premises, stock or producing a product and still view Sh10,000 spend on marketing, advertising or staff training as unnecessary expense.

Any successful entrepreneur will tell you one of the key pillars of success is business development services (BDS).

Essentially, BDS refers to non-financial services provided by public and private suppliers to entrepreneurs who use them to efficiently operate and make their businesses successful. They include training, consultancy and advisory services, marketing, information, technology, and business network promotion.

There are two types of BDS operational and strategic. Operational services are those needed for day-to-day activities, such as effective management or accounting software, information and communications management system, record keeping, and compliance with tax and other legal regulations.

These services are very important in ensuring a smooth and efficient system which saves time and money as well as timely and accurate retrieval of important information.

Strategic services are those that are used by the entrepreneur to address medium- and long-term issues in order to improve service delivery, win customers, be competitive and take advantage of opportunities as well as take care of threats.

For example, strategic services can help an enterprise to position itself in the market, expand, develop new products and be competitive.

Most business owners either are ignorant of availability of, or do not think that they need to buy the services of BDS providers, such as technical or management training, market research, public relations or relevant soft and hard ware as control and efficiency tools. Others think that such services are the preserve of big companies.

Basically every business requires software or a system that enables the owner to monitor stock, sales, account receivables and account payables at the click of a mouse. It is important to training your staff and yourself even if you are one or two.

Most postmortems of failed business reveal that prior to failure owners or managers did not gain clarity and control in key areas such as sales and lead generation, product development, timely market information and accounts receivables and accounts payables.

Fortunately with good training and use of appropriate tools and software, some of which are available at low cost or freely downloadable from the Internet, anyone, regardless of education background can learn and be in control of their business operations.

It is almost impossible to succeed in any field without seeking the knowledge and expertise of others. All successful people are avid readers and knowledge seekers from those who know better than them. BDS ought to be part of the capital requirement for every business. They are the only investment that guarantees the security of others.

More often than not when business is in duress, owners look for extra capital, loans or ways of cutting expenses to stay afloat. However, that could be the least of all requirement of a turnaround strategy. A little bit of marketing, better controls of stock, better service delivery or repackaging could be the Midas touch.

Mr Kiunga is the author of ‘The Art of Entrepreneurship: Strategies to Succeed in a Competitive Market’, and ‘The 7 Pillars of Financial Success’. Email: [email protected].