More that 625,000 small businesses are started every year. Each one represents the business owner’s belief that their company will succeed and thrive in the marketplace. Sadly, almost half of these companies will close within five years according to the Bureau of Labor Statistics. Here are few tips to help you stack the odds in your favor.
- Start with strong management. Many businesses fail because of poor leadership. If the entrepreneur has a great business plan, but no management or supervising experience the learning curve can be very high. Either get a strong business coach or hire people with leadership experience.
- Provide a need or service that is unique and exceeds other competing products and services. Build your marketing strategy around that. The most successful companies have a strong brand built around a simple idea that meets an identified consumer need. Make sure you have marketing expertise in your company from the start. Your marketing must include a solid, well thought out online presence, including social media, well written and optimized content on your website, and ways to encourage interaction with your customers.
- Have a solid business plan. Finding similar companies can be a good starting place to begin filling out your business plan. This can help you from reinventing the wheel but be careful not to repeat their mistakes. Your business plan should include cash flow forecasts, marketing, competition, supply chain and personnel. Financial management can be the most difficult obstacle for some entrepreneurs, but it has become much easier with cloud based accounting software.
- Plan for growth. Every company starts with a limited amount of start up capital. Soon, many entrepreneurs find themselves looking for financing to keep growing their companies. Many business owners have found that invoice factoring is a perfect solution for young, growing companies. This is because factoring companies focus on the credit strength of the companies’ customers and not the business owner.
You can succeed; in fact, by doing your homework you greatly increased your chance of it. Surround yourself with the right employees, keep up with your bank account and other important numbers to give yourself the best chance at your business beating the odds.
American Receivable is Top Rated, 43 year old factoring company. We help startups become thriving, dynamic enterprises. Call today to find out how our team can speed up your success.
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