There are around 543,000 businesses started in the world every year. When it comes to starting your own business, it can be an exciting chapter in life. When you are running your own business, it means you are the boss and have the right to call the shots. You can be flexible to see your family more. But running a business comes with its own set of risks. Over 50 per cent of businesses shut up shop – all within the first 4-5 years. This is reality, unfortunately. But don’t let it stop you from starting up and following your dream. Instead of looking at it as a downfall, look at it as a motivator. Here are a few tips that can help you reduce your risk of shutting up shop.
Learn to diversify
Remember not to put all your eggs in one basket. Explore other products and see what they can offer you and can they help to retain clients. This can help to increase revenue and help to grow additional revenue (this is especially important during seasonal dips). There is another advantage when it comes to offering more than one specialty. You can use cross-promotion between your brands, so consumers get more value for their purchases – while it is increasing your own bottom line.
Have a financial plan
Every company, whether you are small or big, need to know how you are going to manage the finances. It is essential to have proper financial management in order to beat the competition and survive the economy in the industry. You need to have a stash for the slow times, or times when you may have a medical problem and need to shut up shop for a few weeks. Here it’s important to have an intellectual property lawyer to have a look at any public statements, such as annual reports. But for the financial stuff, consider hiring a bookkeeper and accountant to help organise all this and offer their expert insight.
People prefer to do business with those they are familiar with. Start your networking nice and early even before launching in order to build relationships. Join the industry associations, have an online presence, attend chamber meetings and connect with those that have similar goals and dreams as you which can help you develop the business. You are building connections to these people’s businesses and networks so d as much as you can.
Be prepared to put in the time and effort needed. Only start a business if you truly believe you have what it takes to succeed with the business. Research ask advice from professionals and network as much as you can to get people familiar with your service or brand.