50% of new businesses will stabilize within 5 years, that figure drops to 30% in the next five years. Did this make you give up your dream of starting a business? The following 13 tips will help your business become more stable.
1. Create your own brand personality
Unlike large conglomerate businesses, you don’t have the resources to make them known. You need something better. How to compete with charismatic and famous characters? Be yourself. That’s how the customer wants from you.
Your authenticity, heart, values, and vision are what sets you apart from other small business owners. That is really a great resource that you have.
Simply put, build your brand personality by putting your mind on your business. The easiest way to do this is to write a blog post, shoot an instructional video, or speak at an event. Share your vision and values right at your site’s introduction or write an editorial explaining why you started your business.
2. Develop a strategic business plan, organizational structure and operational support system.
Compared to your branding, this isn’t very interesting. But, these procedures can either help grow or bring down your small business.
A strategic business plan is the business blueprint that describes your business concept, philosophy, and mission.
Organizational structure is the policies and processes that ensure your business is a smooth running machine.
Operational support systems can ease the management of day-to-day activities, such as scheduling meetings or keeping track of cash flows. This allows you to focus on other tasks to grow your small business.
These three elements will give you a clear understanding of your company’s processes and ensure you have the right systems in place. As Dr. W. Edwards Deming said, 85% of failure to meet customer expectations is due to deficiencies in systems and processes – not by employees.
3. Avoid common mistakes
One of the best ways to increase your chances of success is to learn from the mistakes of others. Here are 5 of the most common mistakes made by small business owners
You overestimate the need for your product or service. Let’s say you still get DVD from Netflix. Just because you can’t quit this outdated technology doesn’t mean starting a DVD rental business will work. Between Redbox and its streaming services, your chances of survival are low. Share your ideas with your friends and family or do some market research.
Entering a competitive market. At least you are able to grasp the needs of your customers. On the other hand the market has also become more saturated. Better yet, you should have a distinct competitive advantage.
Does not include surcharges. Costs such as salaries, facilities and equipment are obvious. But there are many other costs that are overlooked when starting a business. Disregarding these costs can lead to control of your budget.
Do not plan for profits. If you want to be successful, then you must know your profit model. This means that you must be aware of your aggregate profit on sales, net profit, and what you need to do to exceed your goals. These KPIs-based numbers will tell you how your business actually performs.
4. Connect with the community
Customers love to support local businesses. When they support a local small business, they receive benefits such as improving the local economy. Knowing who is behind the product or service will help to serve the customer better. Furthermore, supporting local businesses keeps the community unique.
As a small business owner, look for opportunities to get feedback through volunteering, running a fundraiser, or sponsoring a nonprofit. Attend local events and engage the community by getting feedback or highlighting your loyal customers.
5. Put your employees first
“Your employees are important, because their skills help your system work,” says Gary Vaynerchuk. By putting employees’ well-being and well-being above everything else, Vaynerchuk has scaled his business and built a dedicated team as he continues to innovate.
Gary, like most great leaders, builds real relationships with his employees, as well as promotes work-life balance. Also, motivate them by celebrating what they do well, building trust and showing them that they are making a big contribution to the overall success of a team.
When you put your employees first, they will be your biggest supporters, while also helping to grow your business at a faster rate.
6. Please respect and keep guests
Customers are the lifeblood of the business. Keep customers and gain loyal ones by:
– Promote your goods or services to your target audience through local newspapers, tv / radio, advertisements, direct mail, trade publications, catalogs, internet or charity advertising.
– Promotions like coupons, free trials or promotional items.
– Provide the best customer care service.
– Build a brand that customers want to support – just like Apple.
When organized, you are more likely to complete tasks and stay on top of everything you need to do. A great start to getting started is creating a daily to-do list. It’s a simple and effective way to stay focused and make sure you don’t forget anything.
8. Get a foothold in your specialty
You want to get ahead of your competition? Then to become a leading expert in the field? Sounds complicated? Simplify this by:
Determine your specialty and knowledge
– Bringing the large market into a more specific segment
Test your expertise with the SPAN test method
Show off your content to new people like posting.
9. Analyze your opponents
This is not a shady business. Most businesses do this to improve themselves. Researching your competitors will give you the chance to see their weaknesses and what they are doing better than you.
With this knowledge, you can focus more on your strengths or improve your shortcomings.
10. Protect your cash flow
The real secret to the success of small businesses is having the discipline to manage their personal finances and business cash flow.
If you want to ensure that your business has positive cash flow, take the following measures:
– Adjust your costs.
– Accelerating receivables.
– Expand your payment schedule.
– Adjust inventory level.
– Get a loan when you need instant cash flow.
Create a cash flow plan over the next six to eight weeks so you can tackle your cash flow problems before they become a problem.
11. Manage your credit
There are times when you need to get credit for your small business, like when you need to close the short-term gap between accounts receivable due to seasonality, inventory expansion, or business growth. Occasionally, there may be an emergency, such as equipment failure, where cash is not available to replace.
Either way, it’s imperative that you have the credit you need on hand. Also, when you have a good credit, you can get more favorable payment terms, be offered a payable debt and set up with new vendors.
12. Gain a reputation in your area
The success of your small business becomes part of the community. After all, when you enter a new market, it must win out businesses that are already in the area. As you lead the way in the community, use tactics like professional introductions, certifications and presentations to gain credibility.
13. Know what you stand for
Blake Mycoskie, founder of TOMS, once said: “If it is easy for someone to understand who you are and what you stand for, it will be easier for them to spread the word.”
When you make a purchase, the company helps people in need. You know who they are, what they stand for and what they do. Thereby, customers will remember and share with each other. When you come back, those people will contribute to your branding.