This article was provided by Jason Dirkham
If you’ve ever looked into starting your own business, you might have read quite terrifying statistics about how many new businesses fail. You can read all about how it’s easier to start a business than ever, and helpful guides on what you need to do to get going. But, at the same time, you are surrounded by scaremongering stories and articles about how nearly all new small businesses fail within the first two years, and that even those that make it to the five-year mark struggle, and barely make any money. Many of these stories claim that while easy to start, actually building a small business that works, grows and makes money, is near enough impossible.
Well, the good news is, most of these statistics are exaggerated. It’s hard to get a real figure, as the stats are completely different depending on what sector your business is in, who your target audience is, how big your business is, and what you want to get from it. A company that was only meant to be a side hustle certainly isn’t failing if it’s only making a small and steady profit. But, it’s certainly not anything like 75% of small businesses fail in two years. Your chances are sure to be a lot better than that.
Unfortunately, however, that doesn’t mean that it’s going to be easy. It’s undoubtedly true that starting a business is the easy part. The growth of online sales, magazines, help services, consultancy, tutoring, and most other things, means that it’s easy to start a business, with relatively low startup costs, in no time at all. For many, it’s growing the business into something that lasts, nurtures and develops over time, that is the problem.
No one starts a business hoping that it will last for a few months, see them through a difficult patch financially, help them to realize their dreams, give them a new passion and ignite their love of business, only for it to fail not long after it’s got going. Very few people would be happy returning to work for someone else, or going back to their old career after they have started to work for themselves. It’s a difficult and often depressing step and one that you hope never to have to take.
You’ll probably want your business to be your forever job and even something that you can leave behind for your children and grandchildren, which is why it’s imperative that with every decision that you make, you keep the future in mind. It’s why you always need to consider how you are going to make your business last, instead of just assuming that it will. Here are some of the things that you can do, to help guarantee that your business lasts.
Get Your Business Plan Right
A thorough business plan is crucial. It doesn’t just show you where you want to be. It also plans out how you are going to get there, and breaks your big targets down into more attainable goals. A good business plan can keep you on track, can help you to measure success, and can attract investment.
Do Your Research
Research is crucial if you want to succeed. Just rushing a product or service to market is a mistake. You need to know about your target market or audience so that you know where to advertise and sell. You need to know if there’s actually a demand for your product, and more about your competition, so that you can be competitive and that you know you’re not wasting your time. In the beginning, research is one of the most important things that you can do.
Buy the Right Equipment
In the early days, it’s hard to know exactly what you need to make your business work. In a store, you might only need till points and displays, but it’s still important that you get the right ones, which allow you to offer an excellent customer experience.
In other industries, your needs might be a little more complex. You might need specialist computers or machines. You might need pumps and Seamless Stainless Steel Tube. Some businesses need packing equipment and manufacturing machines. Or, you might just need laptops, desks and chairs.
But, whatever your business needs to function, don’t just rush out and buy the first thing that you see. Take your time to make cost-effective purchases, remembering that long-term, cheapest isn’t always the best. Find equipment, supplies, and machinery that will last that is reliable, and that can do what you need it too, to a high standard. Shop around, looking at second hand, offers, and new suppliers, but take your time.
Grow Slow
One of the most common reasons that new businesses fail is that they rush in. They have a successful launch, and they immediately start to think about expansion. They want to offer new lines or services, or even open another site. Trying to grow too fast can be a massive mistake. Take your time to do things well, to learn, and to improve, before you even consider growth. Grow slow, and you’ll last.
Focus on People
People are the core of your business. You need customers, and you need employees. Look after your customers or clients, and your business will have a much better chance of surviving long term. Insist upon excellent customer service, making sure you and your staff are always willing to go the extra mile. Take the time to get to know your customers, which will enable you to give them what they need, and listen to their advice and feedback. Make them feel valued above all else, and they will keep coming back.
Same goes for your staff. Motivate them to work, not just with rewards and treats, but with fair pay and fair treatment. Get to know them, let them know that you are always available if they have extra needs or concerns. Listen to their ideas and encourage their input. Offer then flexibility and understanding and make them feel as though they are an essential part of your business. Do this, and they will always go the extra mile. They’ll be loyal and hardworking, and the atmosphere in your office or store will be much better and more productive.
Be Prepared for Bad Patches
All businesses have their ups and downs. Even those multinational firms and large internet companies have bad days at the office. They have periods when sales aren’t what they’d want, or don’t come close to meeting their forecasts. Sometimes, there is nothing that we can do about this, economic and political situations out of our control affect our businesses. Even the weather can play its part. But you can always be prepared.
Have an emergency fund, and plans in place for how you are going to treat the bad patches. Think about what you can do when business is slow, to manage your time, and grow your business, despite a drop in sales. These patches will come, knowing how you are going to cope with them means that it isn’t time wasted.
Own as Much as You Can
In the early days, being able to rent a property and even equipment can make your life so much easier. It can be what makes your business possible. If cash flow is limited, you certainly won’t have the funds to buy a building, you might not even be able to buy a room in a building, and renting can be the only way to go. You might even look to rent any equipment and machinery, which can be a big money saver, and is a great option if you don’t want to commit to too much expense in the early days.
But, as your business grows, you should make these commitments. Owning as much as you can give you security. Owning property means that you are protected from increased rent and demands of landlords. It also means that you’ve got options, aside from borrowing from a bank, if you need cash.
Hire Lifers
When you start a business, you might try to do as much as you can on your own, to save money and build your own skills. This also gives you the chance to have complete control. But, as your business grows, you need help. To start with, you might just hire freelancers when you meet a task that needs more expertise than you can give it, but it’s not long until you are in a position to start hiring staff.
When this happens, many small businesses make a mistake. They hire part-time students and young people with no experience. They try to find the cheapest staff that are available when they need them. This often leads to high staff turnover and increased recruitment costs. It also means that your team never gets a chance to be the best. Instead, take your time with recruitment. Hire some fresh faces, but also find experience. Hire some cool older heads, as well as youthful enthusiasm. Try to find a balance, but above all, hire people that will stick with you for life. That will grow with your company. Look for people that could one day be managers and your business with have a strong core to take it forward.
This article was provided by Jason Dirkham
