If you own a business owner or you are interested in starting a new venture, chances are you want to make sure your business does not fail. Building a company, creating new products or services, bringing them to market is an incredible experience. However, finding business success never comes without challenges.
According to research, 21.5% of startups fail in the first and 30% in the second year, which means a thin line divides success and failure. The most common reasons businesses fail are a lack of capital, retaining an inadequate management team, a flawed business model, and unsuccessful marketing activities.
So, since the road to triumph is so competitive and complex, here are our five real-world tips on ensuring your business has the best possible chance of success.
1. Create Financial Projections for Your Business Plan
A business plan is your written roadmap for your marketing, financial, and operational standpoints. It is a document that describes how your business defines its objectives and how it achieves its goals.
Most importantly, your business plan is an indispensable tool to help you get funding or bring on new business partners. Consequently, the most crucial part of convincing them is your financial projections.
When writing down your business plan financial projections, first and foremost, it is important to keep in mind whether your plan is realistic. This will help you in identifying potential shortfalls, learning whether you need financing, and helping potential investors or lenders grasp the possible ROI of funding you.
That means creating the necessary financial projections for your business is vital for understanding the viability of your thoughts and building a case for business loans.
2. Purchase Workers Compensation Insurance
Almost every state requires employers to carry workers' compensation insurance. So, it is wise for you to meet this requirement by purchasing a workers comp insurance policy which can be your and your employees' safety net in case of a workplace injury.
This type of insurance covers expenses for medical treatment, lost wages, retraining, permanent injury, employers liability, and other costs. It can take care of your employees when they are hurt on the job while also protecting your business from significant financial losses after an accident.
On the other hand, if your company does not have this coverage, the medical expenses associated with workers' compensation claims can cause you irreparable financial harm.
3. Provide a Consistent and Great Service
The success of your business depends on providing fantastic customer service as your buyers and clients have come to expect it. Consequently, conversions, sales, and customer retention are incredibly reliant on how you treat your customers. Remember that excellent customer service goes beyond the saying 'the customer is always right.' Nowadays is more about added value.
So, to go a step further in your relations with your customers, ask them (through surveys) what they want. This way, you will get first-hand accounts of the sort of service they wish to receive from your company. Another idea is to implement quality control measures and staff training. That is a great way to ensure the level of customer service you want to provide is consistent.
4. Put the Right Team Together
Building a solid and lasting business requires a lot of hard work. And one of the essential things to secure its survival is putting together the right team in the first place. To do that, keep in mind the following aspects.
First, clearly identify the tasks at hand and the skills needed to complete them. If the assignments are vaguely defined, you will have difficulty knowing what skills you need to match them.
Then, remember that you will also need to identify the soft skills and the hard skills you need. If you already have a team you work with, you probably know what their straight and weaknesses are. Be mindful of that and place the right people in their proper position.
5. When You Start Making Money – Invest Them in Your Business
Are you building a robust business that can realize its potential? Or do you want a company to finance your comfortable standard of living? You need to be sure from the start about it.
Now, there is nothing wrong with either choice. Still, it is crucial to be clear about this because developing a solid business often needs every penny it generates back into it for a considerable period of time. Suppose you want your business to be successful in the long run. In that case, your number one priority should be continuously investing in your business, instead of spending frivolously on yourself.
Rewarding yourself for your effort and success should wait until your business is well established. As a result, once you receive income or turn a profit, you need to think about your business's long-term sustainability. To do that, work on creating a realistic, personal budget, and then pair that budget to the strategic needs of your business.
In many cases, businesses do not fail—the people behind them simply give up. So, besides following our tactics, remember that the single most effective thing you can do to make your business a success is to refuse to throw in the towel.