Starting a new business is an exciting journey, but what can you as a business owner avoid?
20% of new businesses fail during the first two years of operation, and about 50% of all businesses don’t survive past the fifth year according to the U.S Bureau of Labor Statistics. This list will provide you with 8 tips of how to become successful as a startup and small business
Failure doesn’t mean you failed
The biggest mistake you can make is not to try. Failure is key to success, and how to pick up after failure and learn from the mistakes is key in being successful.
Have a business plan in mind
Make a business plan that fits your purpose, without a business plan you are essentially planning to fail. A startup should map out the business plan, even if it just comes out to be one page, the plan should include the cost of operation, expected sales, and the expected customers.
Get organized
As a startup or a small business, it is highly likely to have many things happening at once. Utilizing a daily task list increases productivity. It may sound like a simple thing, but it works and makes the company far more productive.
Understand your market and target audience
Before executing your business it is of high importance to understand your market or customer you are building a product for. There is no way to make a successful business without understanding your customers, by getting continuous feedback from current and prospective customers makes sure you are on the right track. Choose a market that is broad enough to build your business.
Be sure to remember the legal structure and registrar your business
Make sure to register your business and pick the right entity or protect your intellectual property. If not done properly the cost can be devastating to your company.
Don’t hire until the company are ready
Hiring employees too soon is common, listen to the maturity of your company and if you need to hire, make them part-time rather than full-time at the beginning. You don’t want to spend more money than you actually need on employees.
Don’t fear contracts
When implementing a business contract is essential, no matter how good a relationship may be outside of work, a contract while doing business together is of high importance.
Handling your money carefully
Startups tend to have limited access to capital, handling money incorrectly, and being irresponsible with cashflow is a death sentence to your company. Be niche-focused with your money, don’t try to satisfy others – think about your company’s future.