With about half of small businesses failing by their fifth year of operation, it can be a daunting venture to realize the dream of owning your own business; however, with the right approach, you can be successful. Here are the top five ways you can be a small business survivor.
1. Fill a Market Need
You will survive the small business world if you know what people want or need in terms of products or services. Most small businesses fail because they don’t conduct the market research required to know if what they offer is wanted or needed. 42% of businesses fail because there is no market need.
2. Have the Cash Flow to Go the Distance
Be realistic about what the costs of running your business will be. Be realistic about what your profit margin will be and how your business can grow. Seek funds accordingly. 29% of businesses fail because they have insufficient cash flow.
3. Be a Great Leader and Build a Great Team
This is YOUR business, YOUR passion. You will have to invest yourself in it and in finding the best people to be as invested as you are. 23% of businesses fail because they don’t have the right team.
4. Listen to Your Customers
Give them what they want! One of the best ways to conduct market research is to talk to your customers. If you can provide their wants and needs, your value to them is built in. 14% of businesses fail because they ignored their customers.
5. Differentiate and Compete
Take the time to understand your competition and be prepared to compete by differentiating your services and products. In order to differentiate your company effectively, take your market research and write a thorough value proposition. Once that is in place, develop your marketing plan to communicate it to your market. 14% of businesses fail because of poor marketing.