Based on past testimonials, it is evident that large portions of businesses have failed at the beginning. So significant is the figure that up to 50% of small businesses shut down within the first five years of operation. And with the uncertainties in the current economy, who knows whether these odds will worsen?
Even so, as a small-business owner, you can navigate through this unavoidable storm and end up in the 30% that sustain their businesses. Even the largest conglomerates started small. You need to anticipate challenges, prepare for them, and put your best foot forward.
- Lack of funding and inexperience both stand out as the most common reasons why small startups tank. Having a disconnect between the income generated and daily spending leads to complete failure.
- Starting a business without considering the physical entity exposes you to vulnerabilities. Failure to use accurate commercial property valuations could affect the sustainability of your business. Know how much space you need and exhaust all your options.
- Understand both the industry and the market, and then manage your expectations from the onset.
Create a Strong Management Team
Good management is a crucial part of the success of any business, especially during the early stages. Most times, business owners have the skill and passion of selling their products, hence taking the mantle as the sole senior member of the business. However, this may lead to inconsistencies because they may lack strong management skills to oversee other employees.
You can never do everything by yourself, and that is where most business owners fail to acknowledge in the beginning. Besides educating yourself, you could outsource professionals in areas such as finance and marketing, distribute tasks evenly, and set up a fully operational human resource department.
Refine Your Business Plan
A business plan that is up to scratch creates effective strategies for growth and attracts investors and clients. Ultimately, it helps to secure your future financial needs. How does this happen? An effective plan fully describes your business, its management and capital needs, the opportunities, and threats in the market, projected cash flows, and marketing initiatives.
In essence, a business plan is the central point of reference for any business. To avoid common pitfalls that wreck startups, you should have a well-laid-out plan that defines the business model alongside potential customers and revenue streams.
Increase Your Social Media Presence
The only way for a growing business to recognize customer needs and retain relevant data is by establishing strong online structures. Interacting with the public is one of the painless yet rewarding marketing strategies that can boost your brand awareness and retain a loyal customer base.
In today’s world, social media is the most preferred method to contact businesses and an even faster alternative than physical inquiries. Use the existing listening and collaborating tools to get ahead of your competitors by boosting organic visibility. Doing this will reduce your chances of failure and give you better insights into running your business.
For the most part, having expertise in your products, services, and the surrounding competition goes a long way in keeping your business afloat. But what truly matters is having the ideal support structures and the discipline to enforce the tips discussed. Commit yourself to attain bullet-proof stability, cut off unnecessary spending, and you will be amazed by the success that follows.