It takes guts to start a small business. Not everyone is cut out to be an entrepreneur. Even those with entrepreneurial drive hesitate to launch a business, and for a good reason. Statistics show that 7 out of 10 businesses fail within five years, with two of them failing within their first year, and five within three years.
Those who still choose the high road to small business success are well aware of this statistic, and their strong belief in their product or service encourages them to tread on. However, a great product or service is not a guarantee of success. It’s not enough that you have the best idea, the next best thing. Many entrepreneurs see their grand scheme fail to take off because of mistakes that could have been avoided.
The key to success is quick to identify cracks and loopholes, and taking steps to ensure that the same mistakes won’t happen again. These missteps can be the things that will make or break your small business. Read through to make sure you don’t make the same mistakes.
Failing to Plan
While you might be itching to simply launch a business, let it out in the world and wait for the money to flow in, it’s not the wisest thing to do. You know what they say, “When you fail to plan, you plan to fail.” It can be tiring and seemingly pointless, but a solid plan is a strong foundation on which your business will take off. Yes, you can take our word for it.
Failing to Research
Aside from planning for launch, constant research is also vital for a small business. It would help a lot if you stay abreast on current trends, be it on the industry, on the economy, on how you’re doing against the competition, and on the ever-changing customer behaviours.
Failing to Delegate
Small business owners need to wear many hats. At times, you have to be the marketing guy, and then the next hour you need to take care of customer service. Sure, it’s best to know how to do things around your “household”, or your small business. However, you need to acknowledge that you cannot do everything and that there are people better equipped to handle the various areas of your small business. There is great value in hiring the right talent for each critical aspect of your business: more minds, more ideas.
Failing to Spend Money Wisely
Small businesses can make the mistake of either under spending or overspending money. Underspenders may be doing so in fear of losing capital for rainy days. However, investment in the early days of a business is crucial to ensure higher returns in the coming days. On the other hand, we have the overspenders or the small business owners who feel that they are missing out if they don’t pour out huge amounts of money on everything. The truth is, there are a lot of reasonably priced alternatives in every need your business may have. The best thing to do is to make a solid budget and stick to it. Supplement this with consistent and reliable accounting practice, and you will gain more confidence in spending while keeping your net profit margin at a high.
Failing to Commit
It takes committed grit to see small business succeed. There are a handful of ideas that take off at the get-go, and there are some that need waiting out. It might be a harsh battle in the first two years, but as you continuously improve and apply sound business practices, you will reap the rewards.
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