5 Ways To Set Your New Business Up For Success
Dawson County Chamber of Commerce strives to help small businesses succeed. When you need information about the local business climate, are searching for networking opportunities, need pertinent information about grants or events, or just want to connect with other area businesses, let your Chamber be your touchpoint!
If you're an entrepreneur ready to launch your own business, the process may feel daunting at times, especially if you've heard the statistics. Per statistics cited by Website Builder, 20 percent of small businesses fail in their first year. Though this may sound discouraging, it isn't all bad news. There are documented reasons why most of those small businesses fail, and knowing what those are and following some best practices can help you avoid the same fate.
1. Research and Prepare
Many small businesses fail because there's no real demand for the products or services they offer. Research and survey your demographics to be sure you understand who your customers are and what they need. As Epic Marketing explains, proper market analyses can help you identify these critical factors, and that’s a key to success.
Secondly, running out of cash is another big issue for new businesses to fail, and that speaks to a lack of research, knowledge, and preparation on their part. If you are sure there's a market for your business, you also need to have an accurate picture — and forecast — of the costs associated with running your business. That includes everything from production, to marketing, to operating costs and beyond. Once you know how much money you'll need, securing enough funding is your next priority.
2. Find the Right Bank and Secure Enough Funds
It’s easy to get lost in the sea of small business banking, but in general, your account should have plenty of useful features, such as:
High-yield interest rates
Business credit cards
Free instant deposits
Accessibility (online and in-person locations)
3. Develop a Marketing Strategy
A marketing plan is essential to the success of any business but is critical for small businesses right from the outset. A successful marketing strategy can be broken into five basic steps:
Define your business goals
Determine how you will quantify and measure success
Develop a strategy and decide how you will implement it to achieve your goals
Devise a plan of execution, including who and what needs to be involved
Detail your progress in reports
4. Network With Other Professionals
Networking is much more than just swapping business cards at happy hour; it's about establishing relationships with other business professionals with whom you can exchange support, information, advice, and referrals. Join your local Chamber of Commerce to give credibility to your business, increase your visibility in your community, and network with others. You can also join a business networking group or participate in online communities of other entrepreneurs in your field to keep up with the latest information, trends, and tricks of the trade.
5. Cultivate Your Confidence
You might be surprised to discover that, according to experts at The W Community, confidence is the "secret ingredient" to the success of small businesses. A lack of confidence often leads to poor decision-making, avoiding growth opportunities, and even giving up.
The best prescription for developing confidence, in the business sense, is accessing more accurate and reliable information through the kind of benchmarking systems and analysis that larger companies utilize. Knowing this upfront could have a significant impact on your business and how you approach leading it forward. Plus you can take those milestones and celebrate them! And don’t just keep them to yourself — share them with your customers and colleagues. A little well-earned pat on the back can help put your business on the map.
Of course, these five steps are only a few ways to set your new business up for success, but they are among the most important for you to address. Gathering as much information as possible before you make any big decisions makes a significant impact on your business and helps you move forward with confidence.