Small business failure stats are improving, but they’re still scary. According to the latest surveys, 66 percent of businesses won’t survive past a decade.
As an entrepreneur who is in it for the long haul, the prospect of closing shop sooner or later can give you sleepless nights. But the good news is your business can be among the few that morph into empires.
The secret lies in knowing how to make your small business more successful.
Does this sounder easier said than done?
Continue reading for proven strategies you can use to guarantee small business success.
Offer a Product/Service the Market Needs
One of the primary reasons most small businesses fail is offering a product or service that has little or no market demand. If nobody wants to buy what you’re selling, your business will fail.
As such, offering an in-demand product is a crucial element when you want to make your business more profitable and successful. And it’s not just about the market demand. Your product or service must be of greater quality than what your competitors offer.
Now, the question is: how do you know what the market needs?
You have to invest in extensive market research before you even establish your business. The more you know about what the market needs, the higher your chances of creating a product or service that solves an existing problem.
Also, don’t stop innovating once you bring your product to market. Gather consumer feedback and use it to better your product.
Ensure You Have Adequate Startup/Working Capital
Raising enough startup capital is an on-going problem for most starting entrepreneurs. Unfortunately, some make the mistake of opening the business without adequate capital at hand. They probably assume the business will break into the market and start turning out a sustainable profit quickly.
In truth, it can take several months or even years before a new business gets profitable. In the early days, you’ll be burning through boatloads of cash at a higher rate than you’ll be pulling in revenues.
Don’t believe this?
Look at Uber. A multi-billion dollar company, yes, but it has never turned a profit in its decade of existence! But it’s still in business because it has adequate capital. It can afford to meet its operating expenses.
To boost your chances of running a thriving business, don’t start out without enough capital. Should the business fail to meet profit expectations, you’ll still have enough money to keep financing day to day operations.
Assemble a Good Team
Most entrepreneurs start out as a one or two-man band, but as the business grows, they bring more people on the team.
For first-time entrepreneurs, hiring is an exciting time. It means your business is expanding and can afford to pay a salary. However, if you don’t get your recruitment strategy spot on from your first hire, you’ll be doing your company a disservice. If you feel overwhelmed by the process you can always outsource it.
You see, employees are the lifeblood of any organization. If they aren’t up to the task, the company will struggle to meet its goals and objectives.
This is why you should focus on bringing in people who are not only qualified for the job but also a good cultural fit. These are people who believe in your company’s mission and vision.
As you keep assembling a good team, be sure to take care of your workers. Take steps to improve the workplace environment. Invest in ergonomic office furniture, for instance.
You can also look into professional name badges to help build a sense of identification among your employees. Click for more info on the benefits of name badges.
Offer Excellent Customer Service
Customer is king.
If this was ever in doubt, consider the fact over 84 percent of people trusts online reviews as much as a friend’s recommendation. So if your customers leave bad online reviews of your business, expect to see a sharp drop in new customer acquisition.
But you don’t have to worry about negative reviews if your business offers excellent customer services. A satisfied customer is a happy customer.
To improve customer service delivery, start by providing proper training to your customer-facing staff. Next, provide multiple channels of communication, including a live chat feature on your website.
Once a customer contacts you or raises a complaint, they expect to hear back in a matter of hours. Don’t wait for several days before getting back to a customer. Do this and you’ll only be inviting a negative online review for your business.
Gradually, your business will develop a strong reputation for offering excellent customer services. This is good for your brand growth, and a strong brand means a strong business.
Invest in Professional Marketing
Even if your product is ground-breaking, not many people will know about it if you don’t market it widely. Marketing exposes your business to your target market and, depending on your messaging, urges a certain action.
As a small business, you’re probably running on a shoestring budget. Hiring a professional marketer isn’t in your immediate plans.
Well, you need to squeeze some room for professional marketing expenses in your small budget. A pro will help blow up your sales, meaning the return on investment is worth it.
What’s more, you don’t have to hire an in-house marketer. Outsourcing to an established marketing agency is the cheaper and more efficient option.
You Can Reach Small Business Success
At the start of your entrepreneurial journey, small business success can look elusive. While it is true odds are stacked against small entities, you’ve got every chance to make yours a success story.
We have fleshed out some proven strategies that, if implemented correctly, will guarantee business success.
Good luck and keep reading our blog for more insights.