Everyone starting a business hopes their business will succeed. But you need more than hope to start a successful business. According to the Small Business Association (SBA) 30% of new businesses fail during the first two years of being open, 50% fail during the first five years and 66% fail during the first 10. One of the biggest causes of failure is being “undercapitalized” that means you don’t have enough money to live on while the company is getting started. Another is a lack of proper planning. Here are some steps that can greatly increase your chances of success.
Develop a Business Plan
There are a variety of resources available online to help you develop your business plan but it is essential that you do this before moving ahead to other steps. The Small Business Administration is a government agency that can help you get started. They offer assistance from retired business professionals at no cost to you.
They also offer a guide called “10 steps to start your business“. The Guide includes information on how to:
- Conduct market research
- Write your business plan
- Fund your business
- Pick your business location
- Choose a business structure
- Choose your business name
- Register your business
- Get federal and state tax IDs
- Apply for licenses and permits
- Open a business bank account
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Be Extremely Frugal During the Early Years
In an effort to fight the problem of under capitalization you should budget and cut costs at every opportunity. Even companies that receive massive injections of capital from Venture Capitalists need to watch their pennies. Often growing too fast can strain a company and actually cause it to fail because processes and procedures have not had a chance to develop and so the company just throws money at the problem which then becomes a cash drain.
Take Advantage of Social Networking
Modern businesses are the ones that do the best nowadays. They’re the businesses that understand the digital world in vivid detail. If you want people to depend on your business time and time again, you need to have an A+ social media presence. People trust businesses that are communicative and responsive. They appreciate businesses that take the time to keep up with advancements and developments, too.
Recruit a Marketing Agency
Digital marketing companies can help businesses stay relevant and competitive these days. But the digital marketing field is becoming more specialized as it matures. Search for marketing businesses that have extensive experience in your field. They can assist you with SEO (Search Engine Optimization), identity branding, legal content development, and much more. So for instance, if you want to market your law firm, then you should search for a reputable law firm marketing company that can assist you with a campaign. On the other hand if you are a certified coach you should look for a social media company specializing in coaches.
Prioritize Reasonable Rates
Modern consumers are smart people. They’re also usually pretty budget-conscious. They have more choices than ever, too. The businesses that stick around tend to be the ones that prioritize affordability.If you want to steer clear of a premature death, then you need to think like a consumer. You need to give your customer base access to products and services that are good value for their money. The last thing you want is to be labeled as a rip-off.
Change Things up Regularly
Contemporary consumers like change. They appreciate businesses that go the extra mile to keep things exciting. It doesn’t matter if you head a dining establishment or an exercise center. You need to change things up on a frequent basis. It may be nice to introduce delectable new items to your restaurant’s menu. It may be nice to introduce brand new cardiovascular equipment to your gym as well. People tend to get bored rapidly nowadays. Successful businesses respond to that by evolving.
If you want your business to be part of your life for a long time, you have to have a lot of passion. You have to in many ways live and breathe your company. If you have passion, keeping your business relevant can actually be a source of joy.
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