Building a profitable business in Uganda and anywhere in the world is hard. The road to success is always full of ups and downs. According to Charles Ocici – Executive Director of Enterprise Uganda, Uganda tops all the countries with the highest rate of failing businesses. Surprisingly, Uganda is among the most highly entrepreneurial countries in the world. Worldwide, Uganda rates high in enterprise creation, which is no small feat. But why do Ugandans fail to build profitable businesses?
Some business experts say that the lack of research on enterprises and the market is the primary cause of the downfall of Ugandan businesses. No research on niche discovery and products. No research on the target market. While many families in Uganda do business and even boom, they don’t last long because of a lack of research. In other words, researching before and after starting your company is crucial to building a profitable business.
However, building a profitable business does not only depend on research. It depends on several other factors. You could have a well-researched business idea, but if you lack discipline, good personal branding, knowledge, ethical values and much more, you may still not succeed.
Successful people have learned a few things in life that have helped them build successful businesses. Let me share great ideas that have enabled a few people to sustain their businesses profitably over a long time through this post.
I was speaking with a colleague who made his fortune in real estate one day. He told me about how he began his journey to building a profitable business. He talked about the business obstacles he faced, the lessons he learned, and his plans. I saw a simple man in body but a great man in mind. It’s not easy to find such visionary people, and if you can have two or three of them around you, you can count yourself among the lucky persons.
This colleague of mine hinted at five fundamental ideas that helped him become a wealthy man, and I got convinced that the same concepts can be crucial to others. It’s the reason why I chose to share them with you through this article.
5 Key Ingredients to Building a Profitable Business
#1 – Success Takes Time
Building a profitable business takes time because it takes longer to grow a business to the level you want. You have to work hard and determinedly long to make money in business. You must take action every day, week, month, and year. Years can pass by before seeing some good money in your business enterprise. Yes, money starts coming after building a sound foundation for your business. If you persistently work on your business and remain focused, you start seeing good results.
Rome did not get built in one day. Similarly, it takes years for one to study before beginning to work to get some income. People who have gone through formal education are my witnesses. The same principle applies even to business.
#2 – Be Knowledgeable About your Business
Knowledge is power. So goes the saying. It’s therefore so important to educate yourself about the type of business you want to undertake before starting it. Why? Because it’s risky to venture into one in which you have limited knowledge. Even after starting it, you must keep renewing yourself with new knowledge and skills.
However, most people rush into businesses they have not fully understood. They hear that a particular business field is profitable and jump into it. That’s a wrong and disastrous approach to business. You have to do some research to establish the facts. Carry out research and read continuously to build your capacity. It helps you learn new ways of doing business and anticipate changes in people’s tastes, preferences, desires and needs. Besides, it enables you to keep yourself up-to-date and achieve your goals.
#3 – Happy Relationships Lead to Business Success
This aspect sounds strange. But it’s a reality. A stable family and a trusting relationship with people are essential to building a profitable business.
No man is an island. And some people say that where there is a successful man, there is a woman behind that success. Let me add that business success also depends on the trusting relationships you have with the people around you and those who do business with you. You cannot build a profitable business if you are disorganised at home and how you relate with your customers and other people.
#4 – Credibility Leads to Success in Business
Be honest and trustworthy in your dealings with your customers. If you cannot pass the credibility test, you are wasting your time and will never build a profitable business. Trust protects you, and it has saved the most successful business people.
My colleague mainly deals in real estate, whereby he buys land, puts social services, and sells it. Of course, there are many other established property dealers in the marketplace. But because he has built strong credibility, people feel confident and comfortable doing business with him. Do you see what trust can do for you? How trustful are you to your targeted customers? Do they feel you are trustworthy? Secondly, do you exhibit it in your actions?
#5 – Understand That Obstacles Are Part of Life
As you walk your way to building a profitable business, you will inevitably come across so many challenges, risks, failures and roadblocks. But if you want to succeed in your business, you should never allow those obstacles to derail you from achieving your goals. Remain focused and determined. A temporary defeat should never make you pull out of business. When you pull out, it becomes a sure way to failure. Secondly, aren’t you going to lose the time, the energy and the money you have invested in the business?
When my colleague finally went through the above five contributing factors to his business success, he left me contemplating the future of my business. I reflected on how I could apply the same ideas to grow my small business. Eventually, I also realised I needed to continue rubbing shoulders with successful people like him. It’s good to bring closer such people who have made their way through. They add a lot of value to your life, and their ideas, knowledge and experiences can help you build a profitable business.