Today we’ll be looking at the internal factors that affect business and what entrepreneurs can do to ensure that these factors don’t negatively impact on their businesses.
The cool thing about the internal factors that affect business is that entrepreneurs have the power to manage them and this is unlike the external factors affecting business which we looked at last time and which can’t be controlled by any one business i.e. they are beyond an entrepreneur’s power to control.
Internal Factors That Affect Business #1: Personnel
This refers to all the people who play a part in the running of a business e.g. employees, security personnel etc.
The best way to ensure that your business performs flawlessly and efficiently when it comes to the personnel department would be to ensure that your staff members are hired based on their merit (i.e. what they know) and not who they know.
Internal Factors That Affect Business #2: Cash Flow
Cash flow is simply the money that goes in and out of a business.
As an entrepreneur, you need to ensure that the expenditures that your business encounters are only those associated with the running of your business.
The best way to keep track of your cash flow is to have a credible accounts department that keeps a proper and correct record of what comes in and what goes out. You can also check the account books every few days to ensure they’re balancing.
Internal Factors That Affect Business #3: Technology
internal factors that affect business
Technology here refers to the system and machinery that is used in the running of a business e.g. running an online business requires one to have a computer and an internet connection in order to run their online based business.
You need to ensure that your business uses the right technology so that you can get more done in less time and the best way to go about this is to ask yourself which areas of your business if automated can reduce your costs (e.g. time) and increase your profit.
If your business is using obsolete technology, then getting an upgrade ought to be top on your to do list.
Internal Factors That Affect Business #4: Security
Security here refers to how safe your business is.
Given that security plays a very important role in determine the success of any business, no resource or effort should be spared in ensuring that your business is well protected 24/7/365 e.g. If you’re operating an online business, then you need to ensure that your site is well secured.
Internal Factors That Affect Business #5: Brand Awareness
Brand awareness refers to how established your brand is.
You should make use of efficient marketing techniques to spread your brand to the right people i.e. your target market. It should also be your responsibility as a business owner to ensure that all your customers receive the best possible service when they come walking through your doors.
My Take On The Internal factors that affect business
The above internal factors that affect business are just a handful of the internal factors which affect the operations of a business and which entrepreneurs have control over i.e. they have the power to make them work for them to take their businesses to the next level.
Although entrepreneurs might not have control over the external factors affecting their businesses, they should work hard and smart in making the internal factors that affect business work for them so that they can take their businesses to the next level.
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