According to data from the Bureau of Labor Statistics, approximately 20% of private sector businesses fail within the first year. This figure will rise to about half by the end of the fifth year and by the end of the decade, only 30% will still be in business. This represents a 70% failure rate.
As every successful business owner knows, there are common pitfalls to avoid and certain strategies to employ that will improve the chances of your business surviving in the long term. If you are a fledgling entrepreneur looking to balance your profit with purpose then read on for some helpful dos and don’ts when starting your new business.
Create A Business Plan
Clearly define your business goals and objectives by creating a business plan that helps you stay on track and measure your progress. A good business plan should include cash flow projections, a sales and marketing strategy, a budget and key performance indicators (KPIs) that will help you monitor and achieve your key business objectives.
Creating a business plan is also essential when seeking investment or funding. Investors and lenders rely on the information in this document before investing in a business, so it is important to set out your business vision as well as document the fundamentals of your profitability.
Value Your Product Or Service
It is important to identify the right price entry point for your product or service and ensure that you value it correctly. While you are a new entrant in the market that is trying to attract a customer base, avoid giving too much away for free or at heavy a discount. Doing so will erode your profits, preventing you from continuing your operations.
Conduct Market Research
It is essential to identify and understand the consumer habits of your target market by conducting market research. When you know who your potential customer is you can then apply your marketing campaigns in that direction making more efficient use of your budget.
By conducting market research you can also identify a gap in the market or a solution to a problem which your product or service provides. With the help of a company like Sortlist, you will be able to find an agency for every need of yours. This will enable you to market your business based on its unique selling point.
Avoid overextending your business by taking out new lines of credit if you do not have a guaranteed income stream to cover your repayments. Whether it’s bank loans or credit cards it’s important to manage your expenses carefully as a new business to avoid going into excessive debt. If you need help managing your debt, debt relief loans in San Antonio may be able to assist.
To stay competitive, business owners need to embrace technology. Whether it’s digital marketing, customer relationship management or payment processing software, technology can help streamline your operations, increase efficiency and help you reach a wider target audience.
Forget To Adapt
Due to the COVID-19 pandemic, many businesses have had to adapt to changes in consumer habits brought on by lockdowns, reduced footfall and lower incomes. As a business, it is important to pay attention to what is happening in the market and to come up with new ways to meet changing consumer habits, needs and preferences.
By following the advice outlined in this article, you’re guaranteed to give your business the best chance of success.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.