Just because the stats reveal that 50% of businesses collapse within the first 5 years doesn’t mean even your new company will follow. Consider the 50% that survive the 5 years mark. Even the kind of industry you are in can make a huge difference. For example, the social assistance and healthcare industry have higher survival rates than the transportation and construction sector.
Potential reasons businesses are unsuccessful
There are plenty of reasons a business can fail. Some common ones are –
- No marketing
- Poor customer service
- No expansion plan
- No detailed budget
- No money
- Recruiting the wrong people
- Plenty of competition
- Inaccurate pricing
What are the winning business principles?
On the Canvas Brown, Edu blog read about what the most successful businessman Shawn Finnegan in Utah has to say about his winning principles. His positive business philosophy encompasses three basic principles.
- Respect and appreciate your coworkers and customers.
- Customers are a genuine business asset, so make them feel comfortable.
- Establish an environment that respects both – employees and customers.
Tips to run a business successfully
- Never underestimate the significance of detailed and careful market research. Gaining insights into your ideal customer, market trends, existing competitors, anticipated demand & growth, etc. is valuable to making educated business decisions.
- Draft a written business plan including goals and workflows. Store it in the clouds, so it is accessible to every stakeholder. It allows for consistency, collaboration, and even evolution over time. Modify, save, and share it automatically! A written business plan makes achieving and staying focused simple.
- To sustain operations, a business has to bring in sufficient money and profits for reinvesting in future growth. Set revenue factoring the business costs and profitability goals because documenting this information offers clarity on what is necessary to keep the business thriving.
- The human resource team is powerful for building company culture via employee recruitment to engagement and training to increase productivity. Hire a competent HR team and see your company grow quickly!
- A business owner is not an expert in many things, so they need to hire such talents. Ask for their feedback and input to help make educated decisions. When your business wins it is a victory for all. Develop employee onboarding strategy and system to measure performance. Ensure to lighten the loads on yourself and full-time employees by outsourcing some tasks, so you and the team can focus on specific expertise areas.
- Building a strong team even includes the task of keeping them motivated and feeling taken care of through offering incentives. Offering staff benefits is crucial. There are some mandatory benefits associated with local, state, and federal levels including worker’s compensation, unemployment taxes & insurance, FMLA, etc. In the hot job sector, there are some benefits to include like retirement savings, health benefits, disability insurance, paid holidays, and life insurance.
- Choose the right SaaS solutions and apps designed for business growth.
Starting a business is uncomplicated but running it successfully takes commitment, time, and effort. Study businesses that respect people, cultivate repute for reliability and build expertise within the niche. Take your learning into action and maintain a successful business!
