Starting a business isn’t easy, in fact according to statistics 20% of small businesses fail in their first year, 30% fail in their second year, and 50% fail after five years. Finally, 70% of small business owners fail in their 10th year in business. Want to make sure your business lasts? Here are SMART things you can do to help your business survive these statistics.
#1: Set Yourself Apart from the Competition
There are only two ways to set yourself apart of the competition. It is either through a low-cost strategy (like Walmart) or a differentiation strategy (like BMW). If you are going to choose to differentiate, find a niche and offer services or a product where competition is low. You can do this by researching other businesses to get an idea of the gaps in the marketplace.
#2: Find Ways to Save Money at the Outset of your Business
Starting a business isn’t cheap. You will need to spend money on marketing, equipment, business insurance, and a range of other business expenses. If you’re not careful, you could easily bankrupt yourself before your business has even made a sale. Here are some ways you can start a business without a loan.
Shop around for equipment and products you need. Buy second-hand equipment if it makes sense. Use budget-friendly marketing ideas. And if it is feasible, work from home rather than renting out office space.
#3: Seek Professional Support
Find a mentor that can help you navigate through starting a business. A mentor’s hindsight can be your foresight! With their wisdom and advice, you will be able to start your business on the right footing. If you don’t know anybody personally, you can use services such as MicroMentor to connect you with the right person.
Outsource specific startup tasks to professional agencies. Some companies offer specialized services for specific industries, such as tech company adNet who manage IT for medical offices. So, when outsourcing those tasks you need assistance with, be smart, and choose the companies who know your industry the best. With professional assistance, you will minimize the risk of business failure.
#4: Know the law
Now knowing or understanding the law is not an excuse if you make a mistake. For your information, check out these business laws and regulations. By doing your research early, you will be able to take the appropriate steps to safeguard yourself legally.
And for further advice, make an appointment with a business lawyer. He or she will be invaluable at the outset of your business and will put you on a lawful path. You should also speak to them anytime you are unsure about something, as it’s better to be safe than sorry, after all!
#5: Plan for the Future
Don’t focus too heavily on the present as you begin your business. You need to plan ahead by creating a list of business goals. With these in mind, you will also know where you need to budget. Then find ways to manage your finances so you can successfully meet them. We also advise you to seek the help of an accountant for smarter decision making with your finances.