As soon as your business is off the ground, it is vital to look at these statistics to avoid common pitfalls. After all, the best thing you can do if many small businesses are failing around you is to learn from their mistakes. Here are five tips to start planning the future of your small business.
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Just in the United States, there are over 30.7 million small businesses operating in a wide range of industries. And, a whopping 20% of them are likely to fail within their first year of trading and 50% within the first 5 years. Of course, the reasons behind failures can be different. For example, a lack of funds, data loss, a change in the market, or an unpredictable event like a pandemic can leave a mark on a business.
Get the Right Team – And Outsource!
As a business owner on a small budget, you are probably trying to save as much as you can. However, often, doing it all by yourself will not pay off! In fact, the first thing you need for a successful business is to fill the right job positions. Once the core functions of your business are covered by professionals, you can start thinking about those services that are not at the core of your company but are just as important. For these, outsourcing is the best way to obtain professional expertise while remaining within budget.
Have Clear Goals
Many businesses fail because they don’t have a clear goal to strive towards. So, if your business is still young, this is the best time to set in stone your values and missions. Of course, these can change throughout the life of your business – especially if you wish to expand into different markets or you are changing your target market. However, there should never be a moment when you don’t have clear goals to reach.
Explore New Tech
The right technology allows your business to remain current and competitive. At first, you might have been able to create the minimum viable products and started to attract interest. But as soon as you start to receive funds, you should reinvest them into the business itself, thus increasing its growth rate.
Learn and Network
As an entrepreneur, now two of your work days will be exactly the same. You will need to wear many hats and people will look at you to find answers to unprecedented problems. However, if you do have problem-solving skills, you are likely to thrive in this environment. Nonetheless, you should never stop learning about the industry you operate in and new techniques and skills to put into practice. Don’t underestimate the importance of the right network – after all, no business is an island!
Have a Pension Plan in Place
If your business is still small, you might look at your pension as something extremely far away. However, the truth is that you need to start planning for this time of your life in advance. Since every business is unique, there is no “one-size-fits-all” formula that you can use to craft a pension plan. Because of this, make sure you consult an expert and find the right solution for your needs. Get the right retirement savings account for your small business!
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