Did you know that, according to the U.S. Small Business Administration, 50% of small businesses end up failing within the first five years? Although there are many benefits of starting up and running a small business, there are many potential pitfalls as well. Understand the risks and how to overcome them is important for establishing yourself as a long term business. Here is our list of small business tips and advice so that you can help your business grow and thrive, rather than contributing to it tanking.
1. Market Your Products or Services
When people transition into the business world after being involved in other industries, they often assume that word of mouth about a quality product will be enough to keep them going. Truthfully, though, you could have the best product in the world, and no one will know about it if you do not investing in marketing. Marketing means visibility for your business. 60% of small businesses do not have a website, and this is a mistake considering how many consumers now check their options via search engines. Online, PPC, SEO, email and social media are all great, low cost options for engaging your consumers. Coupons, radio advertisements, and mailing lists can be used to generate interest.
2. Know the Basics of Business
The biggest source of business failure is financial incompetence. 46% of businesses, in fact, tank for this reason. Our tips for small business owners would include educating yourself about tax payments, accounting, good record keeping, pricing by emotion rather than market value, and avoiding living too high. Basic financial courses can help you get an idea of how to run your business from the financial side.
3. Business Plan Tips
Many beginning entrepreneurs skip creating a business plan, but in fact, having a plan can help you remain focused on your business, and prevent you from making many mistakes that might ultimately might result in a failed business. The U.S. Small Business Administration recommends that a plan details projects for the next three to five years, and include information about your company description, market analysis, product line information, management, sales, and financial projections.
Have any small business tips and advice? Let us know in the comments!