For all of those people who want to live the dream of being their own boss and working their own hours in a successful business, it is true that some will go on to live their dream. Unfortunately, statistics tell us that up to 97% of business go on to fail within the first 2 years of operating. So how can new entrepreneurs beat the odds of failure and succeed with their venture?
After years of working and developing my skills, I had decided to go into business for myself. I had done well in the corporate arena and I had experienced working on campaigns for some of the world’s leading brands, as well as learning to do business from the ground roots for local owner operated businesses. I was fortunate to learn from both types of experiences that I have taken into my start-up, and that I hope you can adapt to yours as well.
Planning
You are going into business because you want to make money. This should be the primary objective. You can incorporate it into your lifestyle habits to give yourself a better quality of life. For all of this to happen, you need to have planning with a strategy that will allow you to achieve your business goals. Set your goal. Make sure it is measurable. Set a timeframe on when you would like to achieve your goal. And then detail the steps (these are the tactics) that you will implement to achieve your business goals.
Invest in your ideas.
It seems daunting to think how much money you need to spend and the risk that you have with not making a return. But the only way your business will grow is if you invest in your ideas. You need to accept that some of the ideas will pay off and some of them won’t. Your goal will be to create a portfolio of your invested activities that will turn a profit over the long-term.
Cash flow is king.
The bottom line for a business is cash flow. Whatever is spent within the business needs to turn a profit. The business owner and the people who are involved within the business need to remember that the business is in it for a profit, not for a social group. This means that people who are working within the organisation must conduct activities that will create opportunities to facilitate sales, up sells and more. Additionally, activities to demonstrate the business credibility through publications and PR is another significant thing that businesses can do.
When it comes to marketing, Test, Test, Test
Your sales marketing process will be crucial to the successful development of your business. You don’t have to act like a big brand and spend millions of dollars or pounds. You need to be sensible with the activities that your business can afford to do
Know your marketing budget
Do not try to keep up with the joneses. That will be a recipe for disaster. Know what your marketing budget will be and stick to it.
The larger your profit margin, the better!
Additionally, don’t run your profit margins too tightly. Your marketing acquisition cost will be high initially and until you have an on-going backend model in place.
Working capital
One of the most underestimated things with a start-up is forecasting the amount of working capital that you need to grow your venture. When you begin your business, you will be seeking to reduce costs and overheads, however you will need to have access to money to fund your initial start-up costs. These costs may include:
- Rent
- Software
- Business consulting costs (such as setting up with accountants, bookkeepers, lawyers, etc.)
Get the foundations right.
Whether you decide to do a brick and mortar business, or to develop a business online. You have to get the foundations of your business put into place if you want to scale your business to grow without any setbacks. Ensure that you:
- Develop a strong product or service.
- That you can deliver on your business’s promise
Focus on developing a business model that will allow your business to grow.
Develop a business model that will allow you to scale the new business development and the delivery of the products or services with your clients. Register all necessary business registrations, websites, trademarks, licenses or any other business documentation. Get your payment processing in place so your business can receive income and also pay any creditors.
Make smart decisions.
While you are running your business, you will need to make strategic decisions to grow your business. At times you will be faced with taking risks that could impact the financial future of your business. Manage the risk by taking smart decisions to sustain the business in case things don’t go in your favour.
Author: David James is a digital marketing specialist, copywriter and owner of the digital marketing agency Businessgrowthdigitalmarketing.com. He writes for digital marketing publications and has consulted for major global brands including Mazda, SAP and Lynx. A keen traveller to explore new cultures, you can connect with him on Google+, Facebook and Twitter.
