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Successful Businesses Use This Tool to Predict the Future and Get Ahead of Their Competitors

Successful Businesses Use This Tool to Predict the Future and Get Ahead of Their Competitors

There are many factors that can affect the success of your business and determine which direction you will have to take next. According to research conducted by the Small Business Administration (SBA), one of the reasons 22% of start-ups fail within the first five years of launching is due to poor management.[1]

While there are many management skills for us to acquire, the ability to foresee the future is unquestionably the number one ability everyone longs to possess. Fortunately, it’s not some inherent talent only available to an elite few. With the right tools and resources, you too can make accurate business projections.

What Is PEST Analysis and How It Can Help You Predict the Future

One of the best tools to use is the PEST analysis. A PEST analysis is centered around the political, economic, social and technological factors of a business. These are part of the macro environment. The macro environment is about external influences and factors that can heavily influence a business whether they choose it or not. We will break down the PEST analysis into 4 major factors so you have a better understanding before applying it to your business:

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Political Factor

What it means: This is about regulations and laws that are put in place in your place of residence/ town/ country that have a significant on your business. The issues around politics are, tax, political stability, trade regulations, affirmative actions and so forth.

Why it is important: This is important when planning your finances, hiring policies and training of staff. Some companies have quotas around hiring minorities and previously disadvantaged groups. Some industries require you to train staff on first aid and healthy safety.

How to use it: When you are planning the overall growth it’s important to keep in mind what these requirements are when you reach a certain turnover or head count of staff. This puts you ahead of the curve and you have no surprises when you do reach a certain threshold as implementation and planning can be very costly.

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Economic Factor

What it means: This include factors such as inflation, currency strength, interest rates, trading power and foreign investments to name a few.

Why it is important: This helps if you want to get funding for your business, financing, loans from the banks. The economic environment also gives you insight regarding un-employment rates, pay rates and other financial aspect re your business.

How to use it: This is great for when you’re making financial projections. For example, if you have a long term loan out against your company, factoring in interest rates of the bank ensures that you do not come short on your budgeting. If you wish to hire someone with certain experience and expertise, knowing what the market rate is for such professional can help you in terms of your hiring plan and how to factor in that salary when you’re budgeting

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Social Factor

What it means: The social environment deals with demographics, location, culture, lifestyle and the likes. Having a know how about your environment is paramount to how you establish your business. For example, there is not use going to sell feminine products in an industrial area dominated by men. Or selling fur coats in a place where animal rights are of high importance to the culture. Different cultures like different things so you need to know how to accommodate them.

Why it is important: When the community feel that the business caters to their needs and understands them, you gain more loyal customers and that gives you competitive advantage.

How to use it: It is also very important for organizations to be involved in Corporate Social Responsibility (CSR) – most people think CSR is expensive and is only applicable to big corporations but it’s a social responsibility every company has. You can choose to devote your time to helping repair roofs in a school. You can get employees involved in helping at charities or you can give contribution to a cause. It doesn’t have to be millions but the little can go a long way.

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Technological Factor

What it means: The technological aspect of the PEST is something that is new to this analysis. But in today’s world, it is almost detrimental to your business to ignore technology.

Why it is important: How does technology affect the business you do? The world of retail was transformed significantly when e-commerce was introduced. If your organization deals with everyday mundane and monotonous tasks, how does technology affect your growth. There are some systems that are automated to help eradicate the human error. There are computers that can do a job that easily required 4 people.

How to use it: Knowing what kind of technology is out there and how it either threatens/assists your business, will help you derive a better vision and makes your more flexible and you won’t be so susceptible to change.

The PEST analysis can also be extended to a PESTEL Analysis, which deals with the environment issues like animal rights, carbon footprints, pollution and the likes as well as legal matters such as discriminations laws, harassment, minimum wages and other compliance issues.

If you have the desire to grow and expand your business to be sustainable, the PEST analysis is a tool that can best give you a guideline to take the necessary steps.

Reference

[1]Office of Advocacy: Frequently Asked Questions

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Kayiba Mpoyi

Writer by birth

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Last Updated on October 15, 2018

8 Steps to Continuous Self Motivation Even During the Difficult Times

8 Steps to Continuous Self Motivation Even During the Difficult Times

Many of us find ourselves in motivational slumps that we have to work to get out of. Sometimes it’s like a continuous cycle where we are motivated for a period of time, fall out and then have to build things back up again.

A good way to be continuously self-motivated is to implement something like these 8 steps from Ian McKenzie.[1]

Keep a Positive Attitude

There’s is nothing more powerful for self-motivation than the right attitude. You can’t choose or control your circumstance, but you can choose your attitude towards your circumstances.

How I see this working is while you’re developing these mental steps, and utilizing them regularly, self-motivation will come naturally when you need it.

The key, for me, is hitting the final step to Share With Others. It can be somewhat addictive and self-motivating when you help others who are having trouble.

The Motivation Technique: My 8 Steps

I enjoyed Ian’s article but thought it could use some definition when it comes to trying to build a continuous drive of motivation. Here is a new list on how to self motivate:

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1. Start simple

Keep motivators around your work area – things that give you that initial spark to get going.

These motivators will be the Triggers that remind you to get going.

2. Keep good company

Make more regular encounters with positive and motivated people. This could be as simple as IM chats with peers or a quick discussion with a friend who likes sharing ideas.

Positive and motivated people are very different from the negative ones. They will help you grow and see opportunities during tough times.

Here’re more reasons why you should avoid negative people.

3. Keep learning

Read and try to take in everything you can. The more you learn, the more confident you become in starting projects.

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You can train your brain to crave lifelong learning with these tips.

4. See the good in bad

When encountering obstacles or challenging goals, you want to be in the habit of finding what works to get over them.

Here are 10 tips to make positive thinking easy.

5. Stop thinking

Just do. If you find motivation for a particular project lacking, try getting started on something else. Something trivial even, then you’ll develop the momentum to begin the more important stuff.

When you’re thinking and worrying about it too much, you’re just wasting time. These tried worry busting techniques can help you.

6. Know yourself

Keep notes on when your motivation sucks and when you feel like a superstar. There will be a pattern that, once you are aware of, you can work around and develop.

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Read for yourself how the magic of marking down your mood works.

7. Track your progress

Keep a tally or a progress bar for ongoing projects. When you see something growing, you will always want to nurture it.

Take a look at these 4 simple ways to track your progress so you have motivation to achieve your goals.

8. Help others

Share your ideas and help friends get motivated. Seeing others do well will motivate you to do the same. Write about your success and get feedback from readers.

Helping others actually helps yourself, here’s why.

What I would hope happens here is you will gradually develop certain skills that become motivational habits.

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Once you get to the stage where you are regularly helping others keep motivated – be it with a blog or talking with peers – you’ll find the cycle continuing where each facet of staying motivated is refined and developed.

Too Many Steps?

If you could only take one step? Just do it!

Once you get started on something, you’ll almost always just get into it and keep going. There will be times when you have to do things you really don’t want to: that’s where the other steps and tips from other writers come in handy.

However, the most important thing, that I think is worth repeating, is to just get started.

Get that momentum going and then when you need to, take Ian’s Step 7 and Take A Break. No one wants to work all the time!

Featured photo credit: Japheth Mast via unsplash.com

Reference

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