Get Your Small Business to Survive
The statistics against owning a small business are staggering. Half of all small businesses don’t even survive their first year. Only 5% of small businesses will survive for five years. Majority of company founders tend to be middle aged and well educated.
There’s a 30% chance that the small business you are considering will not every make a dollar of profit! To give your small business the best chance of success, it is important to follow these keys to success. Otherwise your business may end up just another failed statistic.
Start small: Instead of tying up a ton of capital in overhead costs like inventory right away, start small and work your way up to higher levels. Customers like to see inventory that changes so that a store or service always seems refreshed and interesting. You can’t do that adequately if you’ve got most of your cash stuck in your initial orders.
Know your market: If you are marketing Skittles to a community that loves M&M’s, the likelihood that there would be a tremendous amount of sales is not high. When people see a gap in products in a community, they see an opportunity. Without knowing what a market prefers, they may not realize that there is a gap in products because that community just doesn’t buy specific things. If no one likes Skittles, they won’t buy them.
Maintain a quality merchandise: Customers like good stuff. They don’t like cheap stuff, but they don’t like paying a huge price for quality. If you can find the right price point for a community that allows you to make money while still being able to provide a good product, you’ll have a recipe for success.
Listen to what people say: Constructive criticism is taken very negatively by many, but that criticism is worth its weight in gold! If you get feedback that is fairly consistent in specific areas, that is a good indicator that something you’re doing needs to change. When customers feel like you value their feedback, they’re also more likely to continue doing business with you.
Plan: Setting realistic goals, keeping a firm control of your inventory costs, and understanding what your community wants may change are all parts of an effective business plan. When you can plan contingencies out for potentially negative situations, you’ll have a better shot at making it into the 5% of businesses that make it past 5 years.
Market your business: If no one knows you are in business, it doesn’t matter if you have an incredible product or service to offer. You won’t make any money because you won’t have any customers.
Keep it simple: It’s easy to overcomplicate a small business. It’s easy to believe that there are multiple steps that need to be taken for each step of the business process. The reality of a small business is that you have something new to sell at a good price, so go do it!
By using these keys to success for your small business, you’ll be able to have the tools you need to find profit. Most small businesses end up failing… that doesn’t have to be the future of your business.