It is simple – small businesses fail. And, they fail more often than they succeed. Starting a successful business isn’t as easy as coming up with a business idea and putting it into action. Sure, that is important, but it won’t save a company from failure. To stop a company from going under, you have to address the main pitfalls and come up with solutions. Otherwise, you will end up like the majority of small businesses that started this year and are now out of business. So, do you think you are ready to overcome the odds? If you are, you need to do the following to avoid becoming another statistic.
Don’t Do It For The Wrong Reasons
According to the SBA, nearly 80% of small businesses go out of business in the first year, and they do so because they have the wrong attitude. Starting a business isn’t just about making money because they are easier ways to achieve the goal. Starting a business is about taking control of your life and investing in something you love. It is about building a legacy and building that legacy from the ground to the very top of the tree. When you love something, you have drive and passion that is hard to replicate. In other words, you will do things for your business that you won’t if you are in it for the money. Plus, as soon as your finances start to take a battering, you will be out of the door. That is no way to run a business, especially one you want to be successful.
Of course, no one starts a business with the implicit idea of mismanaging their company. That would be ridiculous. No, mismanagement occurs because of a lack of knowledge. As the boss, you will find it hard to delegate power to other people. Indeed, you will find it almost impossible. The reason is it’s your business, and you want to control it, which makes it hard to part with power. However, the flaw in this thinking is that you don’t have the level of expertise needed to make a successful start to life. Like most people, bosses have one or two areas they excel in, and the rest they learn as they go. A business has several essential areas that need taking care of with a high level of expertise. If they aren’t, the company will start to suffer. Outsourcing to external sources with knowledge of the area is an excellent way to keep an even keel.
Find The Necessary Capital
No matter how many people say you need to budget more, you won’t understand how much until you open for business. The real cost of running a company is eye watering, and it will test your resilience on more than one occasion. Your best option is to budget as much money as possible and hope it is enough to see you through the first year. Unfortunately, it is almost impossible to do because no business runs without hitches in the first year. The other option is to find alternative finance to stay in the black. Alt finance can be anything from a bank loan to factoring your assets. A tip: you can learn at Factoring Directory that factoring your assets is a good decision in 2017 due to the economy. Whatever path you choose, just remember that you won’t survive if you don’t have the money. People say money isn’t the most important thing, but they have never started a business.
And The Right Location
Business is like real estate – the best location makes for the best investment. Why? It makes for a sound investment because it keeps you relevant with your audience. When you are more accessible, your customers are more likely to use you instead of your competitors. Even without a physical store, your business premises can make a big difference to your fortunes. A nice headquarters in the middle of town with your name on the front is continuously viewed by the general public. Just because it is subconscious doesn’t mean it doesn’t register with them on any level. Don’t forget the right location is a central one you can afford. Don’t splash out on a building you can’t afford in the hope it will make up for your lack of finance. It won’t, something you’ll soon find out when the creditors knock on the door.
Invest In A Quality Website
Marketing is the key to a new business’s success, yet marketing costs a lot of money. It is a catch 22 situation that was a problem until the rise of the internet. Nowadays, thanks to websites and social media, it is easy to market your brand without spending a penny. However, you must have a good site if you want to take advantage. Remember that all of your competitors are thinking the same thing, so there is a lot of competition. If you don’t have a great looking site with features that add value, your audience will bounce elsewhere. You can do it internally, but a web designer is always the best option. They are experts that know how to deliver a functional and responsive site.
Don’t Expand Too Soon
Imagine your surprise when you not only don’t go out of business but start to flourish. You have beaten the odds, so what do you do next? Expand? No! Expanding a business within the first year to eighteen months is a huge mistake. A year is a relatively short space of time, so there is no way to know if the business is going to make it in the long term. Don’t be the victim of your success and smoother your chances at long term success. Instead, stay calm, enjoy the moment, and make logical decisions.
Yes, it is going to be hard work as the numbers suggest. Still, it doesn’t mean it isn’t possible as long as you don’t make the same mistakes like everyone else.