Business Failure

Five Things that Every New Business Owner should Know to Avoid Failure

One of the most challenging things you can do in life is start your own business. Usually this takes a leap of faith away from the safety net and warmth of employment and can often startle your friends and family.

Businesses are at their most vulnerable when they’re starting off in the world. Often a lack of resource coupled with a deficit in skills can prove a volatile mix especially when things go wrong. However there are some simple points that are applicable to all new ventures no matter what sector they occupy, which will help them both avoid trouble and successfully grow.

Want More than Money

To be invested in your business means putting in a whole lot of time, energy and heart. The journey from beginnings to success is a long and fraught pathway with the majority of participants stumbling and falling at least once along the way.

In order to make this trajectory worthwhile it’s always advisable to choose something you love. That’s why you’ll hear so many business people tell you that they’re passionate about what they do. Because if they weren’t it would ultimately be so much easier for them to take a job and avoid the complications of running their own enterprise.

Make Sure You Plan Ahead

It would be wonderful if business was a consistent and ratifiable entity, providing a steady stream of work and income. However as with many things governed by the natural world your activity may be at best cyclical and at worst sporadic. Planning in all areas smooths out those bumps in your pathway to growth.

In your early days it is vital to build a clear plan that deals with all possible contingencies. You’ll benefit from leaving a little resource on standby in case of emergencies ensuring that your business is flexible enough to deal with the changing tide the economy.

Once you are an established business then there is always the danger of instilling a feast or famine situation, where you swing between periods of high marketing and sales activity and high production. A clear and structured marketing plan will give you the leads you need to make profit without overloading your business.

Have an effective online presence

All businesses need to have a website in today’s increasingly technologically reliant world. It’s not only an expected facet of your identity, but is also used by many of your potential customers to check your credentials before they make an enquiry from a word of mouth recommendation.

Even though you may be able to get by for some time without a website, using social media, remember that having a website gives your business that personal and professional edge. And if your competitors have a decent site, then this will automatically make them look more attractive to potential customers, so you’ll want to close that gap.

Get the right location

You may think that location is no longer relevant in today’s world of smartphones and tablet computers, or that it is only important for retail based businesses. But in truth location is still an essential factor in making sure that your business is a success, putting you in contact with the right people.

The old adage says that people buy from people. By being within handshaking distance of your best customers and clients you’re more likely to do business together as many opportunities are uncovered over coffee rather than in formal meetings. Make sure your business can achieve that all important human touch.

Growth can be dangerous

One of the final lessons is understanding that rapid development is not always the best thing for your business. If you grow too quickly and don’t put effective systems of management into place then you may find that you’re overawed with work and a lack of delegation, leading you into the world of burnout.

By slowing growth and understanding your capacity for production, it is possible to grow at a steady rate employing people and taking the necessary time to bring them into the job role. Metering out your time and bringing new workers into your business is one of the most difficult challenges for any leader, but ultimately a huge step in achieving your goals.

If you’re looking for effective expert advice on how to get the very best out of your new business, whilst avoiding the many pitfalls and challenges, then Leading UK Strategies could be the ideal company to help you. Call us on 0800 246 1845 for more information.

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