There are so few successful business owners because having a business is one of the most challenging careers you can have. A small business that is funded from your own pockets is even harder. This is why 95% of all companies fail within five years. You have to be smart and cunning to stay in this field. One of the main reasons that people fail is they aren’t able to manage their small business. They mismanage things until it is too late, and they have to file for bankruptcy.
When it comes to managing a small business, you have to plan and account for all problems you might face. When you don’t do this, something comes up, and you end up taking a big hit in revenue. For the businesses that don’t prepare well, they end up not having the funds to weather any storm. Here are five factors every business owner needs to know.
- Have a Good Marketing Plan
Nothing in business happens without customers. You can sell if you have no one to sell to. Having a good marketing plan will save you a lot of pain and suffering. At the heart of every business issue, is the lack of selling ability. You aren’t able to sell to enough people to cover your expenses, and that leads to closing the business. Therefore, your marketing plan needs to be the most important thing you focus on.
Without it, you will have a business in name only. This can be a terrible thing, depending on how much your investment upfront was. For example, a capital intensive business that requires thousands of dollars in rent will need to get off the ground quickly. That means your marketing plan needs to be well thought out and executable. That way, you start the business quickly and start making a lot of money.
- Secure the Necessary Funds
If you don’t have enough money on your own to start a business, then you will need a source of financing. That can be friends, loved ones, or even a loan from the bank. All of these issues need to be fixed before you get started. You need to have a funding source and a strategy to maximize those funds.
That means being able to cover your expenses for about six months. Once you have those expenses covered, you can wake up every day knowing you have some insurance in case things go bad.
- Have a Growth Strategy
A business that isn’t growing is dying. You need consistent growth every year to stay in business. One of the most important things for your future success is to have a strategy to achieve that growth. It means accurate planning and forecasting to see what the market is telling you.
- Have Good People with You
No business person can succeed on their own. You need a team of people around you who will help you achieve success. That means bringing together the right employees and partners to succeed. Choosing these people can often determine whether you will make it or not.
- Getting Commercial Property Insurance
You need commercial property insurance if you are operating a physical business. Without this, anything that goes wrong in the real world could affect you negatively. For example, a fire or some other act of nature could devastate your business. Having that insurance policy, make sure that you won’t and up with these types of situations.
Being Successful with Business
Business is hard if you don’t go into it without a good plan. These five things are essential, and you should memorize them. It is hard enough to succeed. Don’t put yourself on the back foot from the start by not planning and forecasting well enough.