The good news about starting your own business? According to fundera.com, an impressive 80% of small business make it to the first year. The not-so-great news? That rate of success falls drastically as the years pass. And by year 5, only about half of those small businesses are still thriving. What’s the reason for these failures? And, more importantly, how can you improve your chances for success with your startup business?
Business data examiners from CB Insights tracked the progress of over 100 startup businesses, and found that the top three reasons why small startups fail include insufficient operating funds, conflict among the startup team, and lack of need or market for the product. Below we’ve outlined some ways that you can increase your chances of having a long lasting and successful small business.
Create a viable business plan.
Determining your financial situation, customer base, the span of the products you’ll offer, what will help you to stand out from the sea of competitors, and your marketing strategies can help give your business a clear direction, and give you realistic expectations. And when considering your cash reserves, be sure to factor in business expenses and your personal living expenses, since you likely will not generate a discernable income during the first year.
Manage inventory well.
SCDigest reports that most US retailors are sitting on an average of $1.43 in inventory for every $1 they sell. Falling into the trap of inventory shortages or overages will undoubtedly lead to missed opportunities for profit. Consider using an inventory management software to track sales patterns.
Delegate administrative tasks.
As an entrepreneur, you are probably used to doing everything for your business; the labor, the creative thinking, the mail handling, customer service, and more. With Pacesetter Workpaces, you can feel secure in delegating your call handling, mail handling, and other administrative tasks to our Phoenix virtual office services. Our administrative professionals will inspire confidence in your clients, and you can be assured that your administrative tasks will be completed in a manner that exceeds your expectations.
Know your customer.
As in, know your customers’ shopping habits and be willing to conform. The “mom-and-pop” small-business charm falls flat when your customers go to look you up on social media and you’re nowhere to be found. Or if they want to pay you via Apple Pay or Venmo and you’re not up to speed. And when they experience your top-notch customer service, it’s in your best interest to allow them to write their rave reviews on Yelp, Google Reviews, Trip Advisor, or Facebook by establishing a multifaceted online presence.
At Pacesetter Workspaces, we want to see you beat the small business odds and succeed for years to come.
Whether we can help you by offering beautiful Phoenix meeting rooms, providing an Arizona office for lease on a daily, weekly, or monthly basis, we have the space and staff available to help your small business rise above the statistics. CONTACT US TODAY!