Starting a business is an exciting venture, but you’ll need much more than just passion to ensure that it lasts. Many new businesses struggle to keep their doors open longer than a year in the competitive market. In fact, according to the U.S. Bureau of Labor Statistics, 20% of businesses fail within the first two years. Further, during the first five years, 45% fail, and 65% fail during the first 10 years. With these statistics in mind, let’s explore five key ways that you can make your business last.
Develop a Strong Business Plan
Develop a strong business plan before anything else. This plan should include the target market, finances, a complete competitive analysis, and anything else you feel pertains to your business. A business plan will help you understand what it will take to keep it going and sets a clear path to success.
Save Money Beforehand
One of the main reasons that businesses are forced to close their doors is because they go broke. During the first one to two years of your business being open, you’re more likely to spend money instead of making money. Set aside funds and come up with fallback plans to ensure that you can still pay utility bills!
Focus on Marketing Efforts
Another key problem is that many new businesses don’t place any focus on continuous marketing efforts. Marketing plans that include SEO, PPC advertising, signage, and even social media campaigns take time to work. Businesses that don’t have a following must understand that it takes time to build one; stopping marketing efforts too soon can lead to business failure.
Consider Risk Management
Businesses that are barely scraping by will have to close their doors indefinitely if they can’t sustain a slight downfall, such as an economic recession. Take the time to research common risks that businesses in your particular industry face. Then, determine a plan to ensure that your company survives if something happens.
Hire a Business Consultation Company
It’s difficult for every business owner to know everything about running a new company. Often, there’s a lot of trial and error. Instead of navigating the learning curve on your own, hire a business consultation company. You can hire one before opening your business to help tackle each of the steps listed above!
Employing a business consultation company can help your new company thrive from the very beginning. Instead of waiting until your business is struggling, contact our experienced and talented team here at Activate Detroit today!