More and more people are launching new businesses, despite horror story headlines suggesting that up to 90% of companies fail within the first 10 years.
The odds may be against you as a new business owner, but there are ways to reduce risks and ensure that your start-up doesn’t become a statistic. In this guide, we’ll outline ways to beat the odds.
Get your finances in order
The most important rule to follow when launching a new business is to get your finances in order from day one. Cash flow issues are the leading cause of start-up failure. If you don’t have expertise in accounting and bookkeeping, or you have no experience in filing tax returns, it’s hugely beneficial to look for a CPA with an excellent reputation and a proven track record.
As your business grows, it’s important to monitor outgoings and income and take advantage of tax-efficient strategies. Working with experts will not only save you money and prevent penalties and legal issues, but it will also free up time for you and your core team to focus on the day-to-day running of the business.
Invest in impactful, targeted marketing campaigns
Marketing is designed to create leads, increase sales and raise brand awareness. The average US business spends around 9% of its annual revenues on marketing. If you are a small business, you may have a low budget, but that doesn’t mean that you can’t achieve key objectives.
Focus on optimizing ROI by investing in impactful, targeted marketing campaigns that will reach the right audiences and persuade them to choose your brand and buy your products and services. Conduct extensive market research and get to know your ideal clients and customers.
Use marketing techniques that will resonate with your target market and run promotions that will attract customers. If you’re selling products to young shoppers aged between 18 and 30, for example, it’s a great idea to enhance your online presence. Run social media giveaways, use videos and stories to promote your brand and engage with followers to build relationships.
Impress your customers
It has always been important to impress customers, but today, it is more critical than ever due to the popularity of social media and review sites. More than 90% of consumers will read reviews before buying products or contacting a company.
To reduce the risk of failure and maximize the chances of success, it’s wise to make it your mission to earn 5-star feedback. Provide customer support options, interact with your clients, treat them like VIPs and acknowledge and reward loyalty. Provide high-quality products and services and prioritize value for money. Use feedback to address issues and make improvements and create a strong, unique brand.
The statistics for new business failure make for difficult reading for aspiring entrepreneurs. Most businesses fold within ten years, but many stand the test of time. To reduce risks and beat the odds, manage your finances effectively, invest in targeted marketing campaigns that make an impact and go all-out to impress your customers from the outset.