Lots of companies fail. 50% won’t make it in 5 years. Why? Learn from it. Deal with it. Here is how to increase your successrate for your business. Think, check and do apply these elements into your business, review the thoughts and check if you are experiencing them.
1. Solve a real customer problem
(Market demand) There must be a real market need (for example – run a restaurant = people need food, or even good food, or street food. Or like complex agricultural storage <> farmers need temporary storage of harvests, or mobile phone <> people need to contact each other with an easy way (mobile phones), or hosting <> business need to have a website, etc.). This is quite a common principle, but essential for your business. Is your market large enough and does it really solve a customer need? Sometimes one can get caught up so much in the business idea, that you might lose sight of this key element. So get to know your customer intimately (needs, wants), and offer it seamlessly and something special. This is called a business value proposition. Learn everything there is about your customer and what they really need and want.
2. Do something else than others
(Differentiate). After first having get to know the customer, it is also important to know what you differently than your competitors. As a hairdresser offer something else, as a business find ways to offer something of value that the competition hasn’t. This can be many thinkgs, but always of value to your target audience or customer.
3. Manage your Cashflow
(Financial control). Lots of companies fail in managing the cashflow. You need to earn enough to make it a float. Cost like staffing, products inventory, investments, often come first, the revenue later. Learn to manage the cashflow. You can find the article on how to make a cashflow overview here.. Having a good overview on the business financials is one of your many jobs. Financial insights is essential for your business. So learn. You can find a financial business plan here to guide you on the financials you need for your business.
4. Plan your business
Have a business plan ready. Just the act of writing a business plan focus you to deal with lots of the issues at hand. It also enables you to think forward on your business and take also a more distant view. This allows you in return to better decision making. Also having a business plan is often required before getting an investment or a business loan. So get one. This is also needed for having the overview you really need of all the running parts of the business. Getting organized helps.
5. Good execution & team support
(work your plan). Having a good team to deliver your business forward is very important. Having good staff you can rely on. Also many entrepreneurs talk about their important first or hire or management team. Having quality staff / employees at the first moment of your start is essential. Also do something hard every day first. This lightens the rest or your day. Prefer to work together with others to share your workload and build execution. Having good others to sometimes rely on, really lightens your load.
6. Focus & Delegate.
You cannot do all things you like to do. So prioritize. Make a schedule of the things you like or need to do. Then focus on the most important parts for your customer. Also find partners, employees others who can do things for you. You will get distracted. That’s why you need the business plan for once a while to think on.
7. Learn & develop yourself.
As a entrepreneur you will never learning. You need to continuously learn. Finance. Legal, Managing Customers, Running the Team, Management, more finance, tedious accounting & taxes, growing elements, regulatory issues, working with partners, suppliers and many other things. You can do business schooling for this, but most of the work is practical with some theory behind it. If you learn this (theory) you will get better at practice, but we think you need to have both. This is exciting as well, as you are sometimes out of depth of new stuff coming your way.
8. You are responsable
So manage your energy. Keep fit and mentally strong. Excercise. No more hiding in corporate jobs etc. It feels risky as well. But hey, this is your life.
Last note: Don’t fall for shiny things. Some business software, partnerships or situations (fancy new car/house) have a ‘golden opportunity’ moment or sale. Keep your cash tight in your pockets. Having a financial buffer will get you (some) peace of mind.
That’s it. There are many other things. but managing these elements really help improving your business success.