I love reading good books and one of the books which I have read recently is, “One Business 99 Lessons” by renowned bestselling author Ms Nanz Chong – Komo. Every single lesson Nanz taught about business in her book is highly valuable to any businessman or anyone who want to venture onto becoming an entrepreneur.
One lesson that I have learnt from the author is to never lose your business focus. Especially when your company starts to make some profits, it will best to invest your profits back into expanding your company from within. Some examples of expanding the business from within is to sell your franchises regionally, invest in building your existing human capital, improve your infrastructure, expand your marketing and branding budget and so on.
A common mistake
However, instead of expanding their business from within, one common mistake that most business owners make is they open up too many new subsidiary businesses (related or unrelated to the main core businesses) in a short span of time. This may be considered dangerous and risky to your core business.
Mentioned in her book, Nanz said she did not stay focused in expanding her core business as she has expended her profits on other subsidiary businesses. Her core brand One.99SHOP has been forced to close down due to the fact that her two subsidiary brands have not been breakeven after more than a year or so of operation.
Brushing aside your entrepreneur’s pride
Most business owners may feel good that the more the number of businesses they own, the better they are. However, in fact, such lack of focus may cause the ultimate demise of your main core business. Like what the author said in her book, I quote, “It is a silly thing to think that having a long list of companies or businesses on our name cards makes us more creditable business people.”
Hence, it is important for a successful entrepreneur to brush aside his or her pride, and be laser-beam focused in his or her core business.
The key is to expand your business correctly. Think of how your brand can be further expanded regionally or even globally. Invest in good talents to help you in your R&D such that you can create and introduce better innovative products into your market. This is because as your business grows, you will need more manpower to assist your existing staff strength, to balance their workload.
Big brands today are the ones that grow from within. This is because they know that, the if they start to open subsidiary businesses, they will gradually lose the market positioning in the long run. Hence, it is always wiser to grow from within.
Hence, learn to climb the mountain gradually with a right strategy and direction in knowing where you want your business to grow. Eventually, not only you will get to where you want your brand to be, you can also make your employees happy to grow together with you. So, enjoy business building!