Nibletz Staff
The statistic that eight out of ten new businesses fail in the first year isn’t surprising. What is shocking is that entrepreneurs don’t learn from their forefathers mistakes. There can be no doubt that a lot of the reasons companies fail are hard to avoid. A lack of capital, for instance, isn’t a quick fix even if you plan ahead in advance. Still, there are plenty of obstacles that firms can hurdle. Avoiding the significant barriers is the difference between success and becoming a statistic. Here are a few tips to help you beat the odds.
Be Conservative
Do you want to know a secret? The reason businesses fail in their first year is because they bite off more than they can chew. Yep, new companies aren’t very good at keeping the bar low in the beginning. By the time they get half way through the year, their targets come back to bite them on the ass. New firms have to start slow if they want to maximize success. By going slow, there is more room for flexibility should something go wrong. Problems often occur out of nowhere, so it’s a savvy move as expanding too fast can lead to cash flow issues and irreparable errors. There is plenty of time for that later!
Know The Customer
The sad truth is that businesses like to think they know their customers, but they don’t. Over a longer period, it becomes easier to spot the people that are going to make a difference. After all, you know the products inside and out, so you know who is likely to make a purchase. In the beginning, the usual suspects are hard to spot, a lot like Keyser Soze. What you have to do is figure out who the key players are so that you can market to them to maximize sales. Surveys, questionnaires, and focus groups are good places to start, as is analyzing customer data.
Think Security
Far too many firms don’t take security seriously enough in the early stages of life. Not treating security with respect is a huge danger because it leaves the business vulnerable. You might only be small, but any hacker can take a shot just because they are bored. Companies have to turn to sites like https://hstechgroup.com in their time of need. These sites not only deal with cyber security, but they also cover physical security. As https://www.wsj.com says, people don’t place enough emphasis on non-cyber security any longer. Don’t make the same mistake because not all thieves use a keyboard to steal.
Spend Wisely
As the introduction alluded to, money will be tight. To survive, you have to stretch your budget or make more. It’s that simple, but it isn’t a simple goal to hit. An error that is common among startup bosses is the unwillingness to splash the cash. Because they don’t have much of it, they want to hoard it for a rainy day. The problem with this tactic is that it encourages you to miss opportunities. A security camera could reduce employee theft and save money, or a new hire could raise productivity. You’ll never know if you are scared to dip into the budget.
A firm needs to be frugal, but they also need to have financial conviction.
