The fundamentals of building a successful business

By Gerald Kean

As I mentioned in the past, many successful businesses, commenced in recessionary times.

There are obviously advantages namely:

(i)        Rents are considerably lower.  In addition people don’t have to commit to long leases and in fact, in many cases, short term licences can be agreed with property owners.  This allows for flexibility and limits exposure and costs.

(ii)       Greater choice of employees.

(iii)      Salaries are lower.

(iv)      Cost of raw products and services are more competitive.

(v)       A greater intensity and focus.

I can only speak from experience. My firm has built up a substantial accident claims practice over the years by simply concentrating and adhering to certain basic principles.  Unfortunately many of these principles were forgotten in the Celtic Tiger. These principles apply, in my opinion, to any business.

A cross section of businesses, who could benefit from my advice, include taxi drivers, accountancy firms, window cleaners, investment and brokerage houses, retail clothing shops, law firms, car valeting services etc.

The various principles can be generally summarised under the following headings: –

CONFIDENCE

At the very outset  in any business, it is important to be confident of success.  This does not mean arrogance. A positive outlook and a perception of success is a good base upon which either to start and/or build any business.

People like to be associated with individuals who are confident in their ability to deliver a product and to achieve.

Be aware that over confidence and/or arrogance is not advised.

CONTACTS

Many people forget that the best contacts are those closest to them. When I started out in business I identified the area of accident claims as a potentially good source of business for the future.

I initially contacted by brother, his wife, my sister, her husband, cousins, neighbours, friends etc. I had no hesitation in asking them personally for help.  I wanted business from them and any of their relations or friends. I wrote to them and then followed this up again with calls (without pestering these potential contacts). I had no hesitation in thanking them for their time and/or for referrals.

A nice approach which is sincere and genuine is important in this regard. Don’t underestimate the importance of those closest to you in building up a business.

I mentioned recently, to a cousin, that he had been great support to my practice over the years.  I was advised, by way of a response, that he had only sent in six or seven clients.  I then advised him that each of these clients had in turn sent in approximately six or seven new clients!

It was quite obvious that my response was a pleasant surprise to my “new favourite relation”!

In the old days, it was not unusual, to host supper or dinner parties and invite along many of these close contacts to your house. A simple evening, of entertaining, achieves a lot in bonding a relationship and promoting a business.

I recently wrote out to a lady, who had contacted my office regarding an accident, and thanked her for her “support and referral of clients and business to the practice”.

The poor lady was shocked when she got the letter and rang me to apologise!The lady in question informed me that she only met me the previous day and didn’t have a chance yet to recommend anybody to the firm. I smiled!

A friendly sincere and committed approach to attracting business through contacts, friends, relations etc is absolutely vital.

VALUE FOR MONEY

I have no hesitation in explaining to contacts and/or clients the excellent value we give for money. I often compare our prices with other firms or professional bodies. I always look at ways of promoting the business through  the simple principle “excellent service for great value”.

For example, in accident claims we not only charge no fees but we also fund all the outlays.  In addition, we go further! We state, that if we lose the case we will still charge no fees nor even seek reimbursement of our outlays! I believe this to be quite a unique offer.

In addition, we offer clients Wills free of charge. I have no doubt, that people reading this article, can immediately think of ways of attracting business by giving some free offer or a service that is somewhat different than competitors.

Getting the word out there is important! However, any offer of a free service or reduced costs should not take away from the final product! The service and delivery of the service must be top class. If not you will suffer in the long term.

HONESTY AND INTEGRITY

Always remember that everybody makes mistakes. I’ve preached this for many years to my own employees. The important principle is to deal with the mistake properly, when it arises.

Do not act dishonestly and always admit when a mistake is made. Always inform the client and/or customer and take whatever steps are necessary to rectify the problem and/or ensure it does not happen again.

People in this country, like many other countries appreciate honesty.

HARD WORK AND COMMITMENT

I spent all my life working hard.  For years I worked seven day a week.  I still work, in the main part, six days a week. There is no substitute for hard work. There are no short cuts.

COMMUNICATION AND NETWORKING

This is important on a number of fronts.

If ever you have a problem, do discuss it with those closest to you.  This could be family, your solicitor, your accountant, friends etc. A problems shared is a problem halved.

Networking is also vital in building your business. I have always tended to spend my time mixing with potential clients rather than colleagues.

As I mentioned earlier, socialising on any front is important in this regard. You should keep spreading the “net”.

As with all of life, you will face difficult times, but with the help of those closest to you these will not cause a problem. Be positive, be committed and above all be optimistic.

I hope this article is of some assistance in helping people of all ages in relation to their own businesses.

Until the next time.