“Starting your own business is like riding a roller coaster. There are highs and lows and every turn you take is another twist. The lows are really low, but the highs can be really high. You have to be strong, keep your stomach tight, and ride along with the roller coaster that you started.” – Lindsay Manseau, Photographer and Entrepreneur
According to the Nettyfeed, there are over 28 million small businesses in the U.S. However, the problem is almost 50% of startups fail during the first year. And the chances of reaching the end of the road only increase with each year on the market.
But why do so many companies face the risk of failure? The answer is not so simple although it all comes down to the issues entrepreneurs haven’t anticipated. So in order to get acquainted with corporate requirements and preventing possible business threats, we offer you a list of highly effective tips to help you secure the startup success and enhanced growth.
Know Your Goals
One of the biggest reasons why small businesses fail is because they didn’t research market demands. Before anything else, entrepreneurs need to be familiar with the industry, target audience, and competition. Who is your perfect customer? How are your products or services different from the rest? What is the ultimate business objective? And is the time for launching your business right?
Offer People a Deal They Can’t Refuse
When first starting out, it’s important to offer quality. The business should be built around consumers because they are the backbone of every successful brand. Instead of focusing on sales, research what people need in the moment and then invest and promote deals customers will prefer.
Don’t be Afraid to Outsource
Outsourcing has become the industry standard. Nowadays, those who wish to reduce costs, enhance customer experiences with the business, increase productivity and improve the quality of products and services in general, turn to outsourcing. Outsourcing back office operations, front office processes and marketing business processes are the main and highly rewarding options startups should definitely include in their business plan once the company begins to gain a broader awareness.
Keep a Close Eye on Cash Flow
The major liability that can ruin both a small business and a large enterprise is cash flow. As according to Nelson, a real estate business owner, you need to have a clear idea of where the money goes and why. The business expenditure should be aligned with the main objectives while retaining a portion for unplanned situations. In other words, keep in touch with your accountant and have backup cash reserves as a safety cushion in case of shortfalls.
Surround Yourself with a Motivated Team
The employee expertise is equally important as their motivation to complete tasks on time. Look at your staff as a well-oiled machine working towards a common goal which is, you guessed it, business successes. However, don’t forget that they are also people with hopes and dreams. Meaning you need to treat them with respect, include them in every step of the way, and provide opportunities for further occupational growth.
Share Your Success
It’s crucial to be transparent with your employees and customers. People feel more related and open to entrepreneurs who are not afraid to share their successes stories. Not only that transparency could help you raise productivity, but it can also build the necessary trust between a business and its audience. Plus, exchanging stories and listening to other ideas provides a chance to learn something new and to form loyal relationships along the way.
Leverage Technology into Your Advantage
Automation is the key to optimizing business processes. Digital technology and mighty software solutions can help to prevent human errors, enhance collaboration across departments, and better engage consumers. The good news is that you can take advantage of free online programs and affordable systems specifically designed to support SMBs. Just be sure you are picking the right tool for your business. Identify areas within your company that consume a lot of time and effort and use them as references.
Learn to Move On
Taking care of every single thing and micromanaging projects can be stressful and damaging for the business. Some mistakes are bound to happen but if you want to overcome bumps on the road, learn to move on and trust your team to efficiently complete tasks. To put it simply, learn from mistakes but don’t fixate on problems.
Meet Your Investors
The majority of startups require investments to kick the business off. If you can relate, it’s recommended to find out what investors prefer and where can you find them. Doing online research is a good start, but still, work your way up in the entrepreneurial community and get involved on social media platforms. But before you contact investors, try finding or getting in touch with your mentors. They can tell you if your idea needs some touch-ups and prep you with the essentials investors expect to get from thriving entrepreneurs.
“What I learned from Rockefeller that’s off-the-hook important is: You need to know exactly where you stand in a business at all times. Measure everything, because everything that is measured and watched improves.” – Bob Parson, GoDaddy Founder
All you need to succeed is a strategic head and a passionate heart. You need to be aware of everything that’s going on with your business at every moment. However, that doesn’t mean you should be too controlling and focused on every single detail.
Also, once the company experience successes, try not to become greedy. Remember, if you build your business on knowledge, respect, and a well-designed strategy, you will diminish the risk of becoming just one of the businesses who couldn’t keep up with evolving market requirements. Good luck!