Every year, thousands of new companies spring up all across the United States. Many are successful right from the start; most, however, fail for a variety of reasons. Perhaps the market for products or services in an industry niche is crowded with competitors, or financial missteps force a business to close its doors soon after opening. Prospective business owners and budding entrepreneurs have many tools at their disposal to help ensure a successful business launch, but the most important aspect is to arm oneself with the knowledge needed to thrive in a competitive marketplace.
Giuseppe Grammatico is a business success story. In 2007, he identified a market niche he could capitalize on and launched his own company. Starting out as a locally-based commercial cleaning service in the New Jersey area, he transformed the company quickly, growing it to become a regional powerhouse in its field and expanding it to include millions of dollars in revenue and hundreds of employees. With his experience in the business world, including a lengthy career as a financial planner and investment broker, he was able to make smart decisions that supported the growth of his company. He understood that there are five critical keys to building a successful business from the ground up.
First, the product or service one offers in a new business venture must satisfy an immediate need in the community. He focused on the many office parks and businesses in his area and realized that there was not a suitable commercial janitorial cleaning service available. If customers need a product or service NOW, launching a business to meet that need makes great financial sense.
Next, it is critical to offer the very best quality one can at a fair market price. Too many new business owners get greedy, pricing themselves right out of the market or cutting corners in quality in an effort to maximize profits. These are huge mistakes that can doom a company before it has a chance to grow. Strive to offer products or services that provide customers with the most value and do not compromise on quality in any way. This help builds trust among your customers, keeping them coming back for more.
Controlling and protecting cash and financial assets is another important step in ensuring a business can thrive. Smart business owners understand that cutting overhead costs while maintaining quality keeps cash flow positive. Budgeting and careful analysis of business expenditures help maintain control over costs; bookkeeping and accounting software can assist with the complex task of tracking money coming in and going out of the company.
He discovered that a good way to expand his business operations with a minimum of risk was to move from a locally-operated business model to a regional franchise model. He was able to sell 65 individual franchises in his company across the greater New York City/New Jersey region, expanding operations and boosting revenue dramatically. Exploring business model options, then, is a good way of identifying potential opportunities and moving to capitalize on them – business models need not be static and must be allowed to adjust to market demands.
Finally, a business cannot grow without sales and marketing. These are two time-honored strategies to bring in new customers; marketing attracts visitors to a physical business or e-commerce website, while sales transforms those new faces into paying customers. It is vital to market your products or services across platforms; today’s most successful companies leverage the power of social media marketing and other non-traditional means to penetrate new markets and keep revenue flowing. On the sales side, delivering products or services in a timely fashion is crucial. Selling only what a company can actually deliver is another important aspect; too many new companies oversell their manufacturing capacity or ability to handle new client accounts, and the quality of their service suffers as a result. He has made a name for himself as an entrepreneur and business leader in the New Jersey region. His knowledge of market conditions and his strong marketing skills will continue to provide his company with ever-expanding opportunities.