Connect with us

Most businesses fail not because they don’t have a good product but because they fail to bring out their value proposition; that is, an innovation, service, or feature intended to make a company or product attractive to customers. When marketing your product or service it’s imperative that you bring out what sets your business apart from competitors.
Show how your business is unique from your competitors. You need to say exactly what you are doing better than the competition.
Your value proposition should attract attention and interest from your customers. That unique attribute should separate you from the rest of the pack and put your product or service on a pedestal above the competition.

You should present your company’s unique value proposition so that the market understands what you are offering them.
A customer will be attracted to those features that address his/her needs and as a result your market share will grow and this will ensure that your business survives.
A business is there to serve customers. If you neglect customers you are setting up your business for failure.
You need to have your pulse on the customers’ needs by being in constant touch with your customers. Know exactly what your customers value about your product or service.
There are certain features or attributes that they like and if you don’t know those things you might stop providing those features and as result lose your customers.
Sometimes customers change their interests or what they value on a product because of a change in trends. So a forward looking business owner keeps his eyes on the horizon watching for any new trends and how they impact on customers.

You can get most of the customers’ requirements from the sales reps who should be talking to customers regularly and getting up-to-date information.
You can also carry out customer satisfaction surveys once in a while so that you know what they need.
Your business will fail if you don’t stay in touch with your customers and understand what they need and the feedback they offer.
Your business can easily become irrelevant if you don’t keep abreast with customers’ needs. Nokia did that and now it’s no longer a player in the mobile phone business because it failed to keep abreast with customers desires.

Some business fail not because the business idea is bad but because the entrepreneur fails to structure the business model properly.
Investopedia defines a business model as the way a company generates revenue and makes profit from its operations.
A business is bound to fail if an entrepreneur builds a business on a model that is not sound, by pursuing a business for which there is no proven revenue streams.
This usually happens if the entrepreneur does not draw up a business plan through which he can test his business idea.
The best way to build a good, tried and tested business model is to research and review how other businesses in the industry you intend starting your business are operating and generating their revenues. After that review you should prepare a detailed business plan that will question all assumptions and indicate how revenue streams will be generated and how reliable those revenue streams are.

Some business fail due to rapid growth. Growth should normally be positive but however unplanned rapid growth can be disastrous because if a business grows much faster than it can keep up with the growth, it might be inundated with orders which it is not able to fulfil because of lack of funding to fund stocks and meet the orders.
If customers cannot get their orders delivered they will not take you seriously and so will leave you and move on to other businesses. In some cases you might overestimate the demand of your product.

You might be so convinced that your product is going to take the world by storm and as result you invest heavily in stocks, logistics and manpower but if the business fails to pick up as anticipated you will be left with so much stocks and human resources which you can’t fund and the business ends up failing. You need to plan your business very carefully.
You need to draw up a business plan which looks at your strengths, the market, the local demographics and their spending trends, any future local government development plans that might impact on your business and ensure that you gear the growth of your business based on these trends. Carry out surveys if possible so that you have an idea of the market.
Avoid getting too much inventory unless it’s justified by demand. Recruit staff as dictated by the demand of the product. Following the above will ensure that you avoid unnecessary business failure.

Stewart Jakarasi is a business & financial strategist and a lecturer in business strategy and performance management.
He provides advisory and guidance on leadership, strategy and execution, preparation of business plans and on how to build and sustain high-performing organisations.
l For assistance in implementing some of the concepts discussed in these articles please contact him on the following contacts: sjakarasi@gmail.com or +266 58881062 or on WhatsApp +266 62110062

Continue Reading
Advertisement

Business

LEC to switch off households over debts

Published

on

MASERU – The Lesotho Electricity Company (LEC) will from Tuesday next week begin switching off clients who owe it money.

The LEC issued a seven-day ultimatum to all customers who owe it on Tuesday last week. The deadline ends on Monday.

It is expected that the LEC will begin switching off households that have defaulted.

The state-owned power company, however, is not going to touch any government department or business entities that owe it on grounds that they are in payment negotiations.

The LEC move comes barely two weeks after it cut electricity supplies to the Water and Sewerage Company (WASCO) thus causing it to fail to pump water to communities countrywide for more than two days.

The LEC says it is owed close to M200 million by government departments, businesses and individuals.

The LEC spokesman, Tšepang Ledia, told thepost that the government and the businesses will not have their electricity cut because they are in negotiations.

“We are in negotiations with the government and businesses and hopefully they will pay,” Ledia said.

“We advise the ordinary people to pay their debts before the 20th of March 2023 or else we cut the services,” he said.

The LEC says it is running short of funds for its daily operations.

In December last year the company increased power tariffs by 7.9 percent on both energy and maximum demand charges across all customer categories for the Financial Year 2022/23.

Last week the LEC boss, Mohato Seleke, said postpaid consumers and sundry debtors owe the company M169.4 million.

He said unless the debtors pay he will be unable to buy electricity from ’Muela Hydropower Project, Eskom in South Africa and Mozambique’s EDM.

This, he said, could cause serious load shedding in the country and could be devastating for businesses.

Seleke said the LEC spends M630 million monthly to buy electricity.

“If postpaid consumers do not settle their debts this could prevent the LEC from being able to buy electricity which can lead the country to encounter load-shedding,” Seleke said.

Seleke said collecting debt from government department ministries was a challenge as there is an understanding that since LEC is a state-owned company, it will continue supplying government agencies with electricity and they will settle their bills when they have funds to do so.

Seleke said the LEC has lost M21 million to vandalism during this financial year.

Relebohile Tšepe

Continue Reading

Business

Bumper payout for former mineworkers

Published

on

MASERU – AT least 11 316 current as well as former mine workers are set for a bumper payout after Tshiamiso Trust began disbursing the first billion Maloti to workers who are suffering from silicosis and tuberculosis.

The payment comes two years after Tshiamiso Trust began processing claims for the historical M5 billion settlement agreement between mineworkers and six gold mines in South Africa.

Speaking at the payment announcement in Maseru last week, the Trust’s CEO, Lusanda Jiya, said it has been two years since they officially began accepting claims.

“Our people come to work every day with the mission of impacting lives for the better, and the first billion rand paid out to over 11 000 families is just the beginning,” Jiya said.

“We know that there is no compensation that will ever be enough to undo the suffering endured by mine workers and their families,” he said.

“However, we are committed to deliver our mandate and ensure that every family that is eligible for compensation receives it.”

Jiya said the Trust is limited both in terms of the time in which they can operate, and the extent to which they can assist those seeking compensation.

Broadly speaking, the eligibility criteria include among others that the mineworker must have worked at one of the qualifying gold mines between March 12, 1965 and December 10, 2019.

Secondly, living mineworkers must have permanent lung damage from silicosis or TB and deceased mine workers representatives must have evidence that proves that they (the deceased) died from TB or Silicosis.

Tshiamiso Trust has a lifespan of 12 years, ending in February 2031.

Over 111 000 claims have been received to date, through offices in South Africa, Lesotho, Botswana, eSwatini, and Mozambique.

The Trust is working with stakeholders in these countries and others to mobilise its efforts and expand operations.

The history of silicosis in South Africa goes back to the late 1880’s when the first gold mines began operations.

The gold was stored and locked in quartz, a special rock that contains large amounts of silica.

Crystallised silica particles can cause serious respiratory damage if inhaled.

In the earlier days of gold mining, dust control, health and safety standards and the use of PPE (personal protective equipment) were not as advanced as they are today.

Tshiamiso Trust was established in 2020 to give effect to the settlement agreement reached between six mining companies.

The companies are African Rainbow Minerals, Anglo American South Africa, AngloGold Ashanti, Harmony Gold, Sibanye Stillwater and Gold Fields.

The settlement agreement was reached and made after a ruling by the Johannesburg High Court as a result of a historic class action by former and current mineworkers against the six gold mines.

Justice for Miners is a coalition of interested parties in the mining sector launched at the Nelson Mandela Foundation in Johannesburg in 2020.

The Johannesburg High Court approved the setting up of the Tshiamiso Trust to facilitate payment by the companies to affected miners.

Keith Chapatarongo

Continue Reading

Business

Farmers cry over cost of livestock feed

Published

on

MASERU – Lehlohonolo Mokhethi is a farmer who has been running a successful poultry business, thanks to a small loan he got from a local bank.

He now has 300 chickens.

He says his vision is to rear 5 000 chickens by 2025 and employ 30 youths. But he is now grappling with a new challenge: the ever increasing cost of chicken feed.

That is threatening the viability of his business.

“The biggest challenge is that food prices increase every day, feeding is expensive,” Mokhethi said.

“It is quite difficult to make profit in business if each and every day food prices increase. Today I am buying a bag of food with a certain amount then the next day the price has increased,” he says.

“Our customers fail dismally to understand that food has increased and the Chinese are taking our market because they sell at a low price thus I run at a loss.”

Last week, a top attorney in Maseru who is also a prominent farmer, Tiisetso Sello-Mafatle, called a meeting for farmers to discuss these challenges.

She says the government must regulate the prices of livestock feed.

That is critical if the farming business is to succeed, she says.

Attorney Sello-Mafatle says farmers must come up with a structure for livestock feed prices which they would present to the government for gazetting.

“We should state our regulations and give them to the government to make everything easy for both parties because we cannot wait for the government to make regulations for us,” Sello-Mafatle says.

She adds that “farmers should be bullish about what they want and never have fear endorsing new things”.

“I will not be challenged or cry (because of) what life throws at me but I will cry when things are not happening the right way,” she says.

Mafatle says farmers need to know who they are and know the capabilities they have.

“This will help a farmer in becoming the best in any field they are in once they are confident about themselves,” she says.

Karabo Lijo, another participant, said they have to influence the cost of inputs in agriculture, especially livestock feed.

“We have to go back to cost-price analysis where as farmers we are able to derive the selling price and the break-even point in our production,” Lijo said.

“We can also derive the stable or constant mark-ups on our products,” he said.

“We need to do research to increase the ability to produce byproducts which are likely to have the longest shelve life,” he said.

The meeting urged farmers to diversify their products by introducing such things as mushroom farming. They said mushrooms can grow very well in Lesotho due to its favourable climate.

The farmers also demanded that there should be regulations on how land can be sold or borrowed in Lesotho.

Tholoana Lesenya and Alice Samuel

Continue Reading

Trending