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Facts About Business Set Up and Development Fails

Starting and developing a business can be an exciting and challenging endeavor. Whether you are an aspiring entrepreneurs or an established business leaders, understanding the facts about business set up and development is critical for success. In this article, we will share some insights that can help attract readers and provide valuable information for anyone interested in business world.

 

Some Facts on Business Set Up and Development

Let’s take a look at some interesting data related to business set up and development:

  • According to the Small Business Administration (SBA), about 20% of new businesses fail within their first year, while around 50% fail within their fifth year.
  • A survey conducted by Gallup found that 85% of small businesses rely on word-of-mouth referrals for customer acquisition.
  • Research by CB Insights revealed that the top reason for startup failure is the lack of market need for their product or service.
  • The Global Entrepreneurship Monitor (GEM) reported that around 100 million businesses are launched globally every year.

Whether you are in the early stages of business planning or looking to take your existing business to new heights, staying informed and adapting to the ever-changing business landscape is crucial. Use the facts and insights mentioned in this article as a starting point to attract readers and provide valuable information for those interested in business set up and development.

The Steps to Set Up Your Business

Setting up a business involves various steps and considerations. It is essential to have a clear understanding of the process to ensure a smooth transition from idea to reality. Here are the steps of business set up:

  1. Preparation: Before legalize your organization, some studies need to be done including clarifying the business purpose, understand the market deeply, and assess financial capabilities. Especially for foreign investor, Indonesian market is indeed promising, but you need to understand Indonesian conditions and market, especially for regulations and local culture.
  2. Register your business: Registering your business with the appropriate authorities is necessary to operate legally. This includes obtaining the necessary licenses and permits, registering for taxes, and complying with local regulations.
  3. Set the goals and strategy: You may have made a draft about this during preparation. Now is the time to express it in the form of mission, vision, business goals and organization values that become the direction and foundation of the company.
  4. Build your business process, structure, culture, systems and technology: You may start a small business, but these things must be taken into account from the beginning. Based on the business goals and strategy, you can create the lean business process, agile structure, solid culture, and aligned systems that ensuring your business will run well and grow.
  5. Get the right people: The demographic bonus in Indonesia is an advantage for the business. We can choose young talents who are both competent and have good character. Employee selection is carried out at the beginning by selecting the leaders and employees who have values and vision that are in line with the organization.
  6. Get the right digital business tools: In today’s digital era, our business must also be digital. But since the investment is not cheap, we can start by determining the critical business processes that need to be digitized which have a direct impact on the business.
  7. Market your business: Businesses need revenue for cash flow and for future development. For this reason, we need the right marketing and branding strategy from the beginning so that our products or services can be marketed effectively.

Critical Steps to Grow Your Business

Once the business is set up, the focus shifts to its development and growth. However, there are organizations that have been around for a long time but have minimal growth, there are organizations that recruit too many employees at the beginning and then reduce them after a while, there are organizations that change directors, change direction and then the business declines, and many other cases. What is often found is that many leaders don’t know where they went wrong and where to fix it.

Here are the steps of business development:

  1. Diagnose the organization: Like a doctor who wants to treat a patient, he finds out the root of the disease by carrying out a diagnosis and sometimes a medical check-up is needed. We need to diagnose the condition of the organization and find out the things that need to be improved. In this case, using a tool such as Organization Effectiveness Assessment can help us to find out what business process, structure, culture, talents, systems and technology that the organization already has and need to be improved.
  2. Identify the most important business process, structure, culture, talents, systems and technology that need to be improved: Based on the diagnose process, we might find various items to be improved related to business process, organizational structure, coporate culture, talens and digitalized systems. Then we need to identify the most important ones that impacts the business in a short time to be able to win quickly, and also considering the long-term improvements that ensure the business can be sustainable.
  3. Develop the impactful solutions to improve it: Then solutions are created for both short and long term improvements by taking into account the risks and impacts to the organization, and the industry and market trend, as well as economic and macro conditions.
  4. Implement that solutions and socialize: The solutions that have been formulated are then implemented carefully. Since it will impact change to the organization, the role and commitment of leadership is very important and change management approach will be used.
  5. Monitor and measure the result: Both leader and project team should monitor the implementation process regularly. Then the result are measured to ensure that the change investments that have been made really have a positive impact on business growth.

Starting and developing a business is certainly not easy. Understanding how to start a business and find the cricital process and systems to improve the business are the key to success. There are many management tools and digital tools offered out there, but implementing them simply does not guarantee success. You need to understand your business conditions first, then choose the right tools, align the system, recruit high potential talents and nurture it.

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