It is often said that 50% of small companies fail in the first year. This isn’t true though, because 20% of companies fail in the first two years, 45% fail in the first five years and 65% fail within ten. This means that only 25% of companies are able to make it to the 15-year mark. If you want to make sure that you end up coming out on top, then this is the guide for you.
Not Investigating the MarketIf you have always wanted to open a real estate agency, then you may be excited about this. You may even have the means and money to begin your business venture as well, but all of this is pointless if the market isn’t doing well, or if the area where you want to work is absolutely saturated with agencies then this will make it very difficult for you to break-in. This is the last thing that you need, so it’s important to make sure that you do your research and that you also push your product and your service in the right place as opposed to trying to make something work when it just isn’t meant to be.
Business Plan Problems
A solid, realistic business plan really is the basis of a great company. In your business plan, you will need to outline all of the achievable goals for your company, and you will also need to plan out how your company can meet those goals. When you create your plan, you have to make sure that you follow it and stick with it. If you begin doubling and changing your strategies, then you may find that you end up asking for failure. Unless you have found that your plan is inaccurate, you have to make sure that you stick with it. If something is wrong, find out what is wrong, and make the effort to fix it. If you change things up too often then this will be a recipe for disaster and this is the last thing that you need.
If you have started a company and you just don’t think that things are working out, then you are not in a position to ask for more. If you are realistic in the beginning then you can ask for enough to last you so that you can get to the point where your business is up and running, and that money flows in. Trying to push your finances in the beginning could mean that your company never gets off the ground. You may even find that you have a lot of cash to repay as well.
A bad location is self-explanatory if your company relies a lot on foot traffic. In this day and age, your location on the internet and the strength of your social media page is just as important as your physical location if you are in a shopping district. You have to look the part and you also need to make sure that you do not compromise on your branding. You also need to make sure that you have a good ranking if possible because if you don’t then people won’t be able to find you, and this can be disastrous for your company.
When you have done the planning and when you have established your company, don’t then become complacent. The need that you are filling right now may not always be there. You have to make sure that you monitor the market, and you need to know how to alter your plan as well. Being ahead of any key trends will give you a lot of time to change your strategy so that you can be successful now as well as in the future. Look at Blockbuster, or the music industry to see how the most successful companies still need to change or face becoming obsolete.
Not having Legal Support
If you try and run a business without any kind of legal support, then this will certainly work against you. You have to make sure that you do what you can to try and hire a good lawyer as you never truly know when you are going to need their services and the last thing that you need is to hire someone quickly, only to find that they are not suited to the job. If you work in the logistics industry then hiring some pro truck accident lawyers may help you as well, if you ever find that you get into an accident.
Expanding too Quickly
Now that you have an established and successful business, it’s time for you to expand. That being said, you have to try and act like your expansion is your business starting all over again. Understand the market you are trying to reach, take the time to know your ideal customer and also change the scope and the focus of your company. This will really help you to reap the benefits.