It’s not a secret that smaller businesses are much more likely to fail than large corporations, and it’s due to the massive difference in the amount of funding each gets.
A small business usually has to struggle through the early stages, amassing just enough to expand their operations while retaining profitability, and it’s why so many small businesses fail within the first year.
In fact, data shows that 50% of all small businesses WILL fail in their first year, and the rest will have a hard time making ends meet in the period that follows.
Managing a business is hard, and it takes a lot of experience to build one from the ground up without experiencing failure, and even some of the most seasoned entrepreneurs will fail from time to time.
We’ve put together a list of some things you can do to help keep your business above the water and help it thrive in the hardest of times.
While this may come off as common sense to most, it’s actually fairly difficult to save money once your business is up and running, and this is particularly true for businesses trying to break out onto the market.
However, saving is a simple concept and can easily be incorporated into any business plan, as long as you’re willing to make some minor sacrifices.
This means that even if you may end up generating less revenue at the start, as you’ll be dedicating fewer resources to running your business, you’ll be much better equipped to deal with slow sales, damage to the store, or a market downturn that would otherwise cripple your business’s finances.
If you do this, even if you’re having a slow month, you’ll have a pool of money to rely on and keep paying your employees.
Every business has expenses that could potentially be viewed as unnecessary at a time when certain budget cuts are to be made.
From expensive marketing campaigns to frequent travel expenses, a lot of things could be impeding your progress and your business’s growth.
Thankfully, changing this is a piece of cake, and by implementing just a few minor changes to how you handle your finances, you could make your money go to a much greater length.
A good way to cut costs is to create an online presence for your business, which can help reduce expenses in various areas of running your business, from marketing to keeping up with your consumers.
On top of this, an online presence can potentially boost sales, allowing you to focus on other aspects of your business without having to cut back on too much.
Sometimes, the original idea just isn’t good enough for it to last in the rapidly changing market we have today, and that’s perfectly fine.
Coming to terms with the fact that your vision may not come true, at least for now, is a necessary step in growing your business, and even if it means changing what you stand for, it may be for the better.
That being said, you shouldn’t completely disregard everything your brand once stood for, as it’s what attracted so many people to it, meaning that you should retain at least a portion of that old identity your business had.
Collect feedback from your customers to get a better idea of what you could change and what they’re dissatisfied with, which will leave you with a lot of options to improve on in the future.
Keep adapting as time goes on and the market will pay it back tenfold, as long as you’ve got an idea that’s promising.
Don’t be afraid to ask for help
At the end of the day, no first-time entrepreneur is an expert, yet they all need expert advice in order to run their business properly.
This is why financial and business advisors exist, and their sole purpose is to make your life as an investor/entrepreneur easier, as they are much better at keeping track of the changes in the market and giving you tips on what your next step should be if you’re looking to keep moving forward.
However, even seasoned entrepreneurs seek advice from time to time, as a second opinion is invaluable to anyone who’s found themselves facing a wall they think they can’t scale.
There’s always a way around it, or over, or under it, and an advisor will help you find it, for the right price, of course.
When you start your business, you’re bound to experience difficulties, especially in the early stages, which is when most first-time business owners turn back and never return again.
This is what separates the quitters from those that press on no matter the cost, and it’s one of the main qualities of a successful business owner.
Being able to press on even when the times are hard is what helps your business grow, and the adversities will help you shape it into something beautiful with enough time.