This time of year I can’t help but think about the 80% failure rate of small businesses. This is normally when they throw in the towel and go W2, or try another venture.
Now that we are winding down 2014 and so many people will be starting new and even first time small businesses, I wanted to focus on a few things you can do to make sure your businesses doesn’t go out of business!
You must love your product and use it.
Don’t go into business to make a profit. Make a profit because you are doing something you love. If you live your product or service then you should definitely be using it.
Just like I’ve said about multi level marketing, no one is going to buy your product if you aren’t using it yourself or at least living the lifestyle that your product represents.
Focus on how you can best serve your client, not yourself.
When I started my business back in 1999, people asked me how I got my clients and my answer was always the same. “I take damn good care of the clients I already have.”
It was the truth, not a tag line, but if you take damn good care of the clients you have, then they will send you an abundance of more clients. People talk.
Be realistic about your budget and loan needs.
Don’t try to sell your idea to the bank or an investor without strong numbers to back it up. You need to be realistic about how much it will take to get your business off the ground, and how long it will take you to be profitable so that you have reserves.
No one wants to hear about your billion dollar idea. They want facts about your clients, demographic, location, price, competition and things that could change your overall market.
Do your due diligence and focus on the backup for your business plan, and you will have a much better chance at getting your loan.
Don’t try to make it perfect the first time.
There is no such thing. Be smart, be calculating, but don’t be afraid to jump of the cliff and throw your name, your brand and your website out there.
In the beginning very few people will see it anyway, and you will have several months to continually tweak your marketing. Until you throw it out there, you won’t know how people will respond and you can’t make perfect something until you know it’s working.
So many people spend unnecessary funds in the beginning to make something perfect, only to find out that the public didn’t “grab” the idea like they thought.
Don’t be afraid to stop, assess, and redirect.
Once you start to build momentum, you will come to a fork in the road. This happens to almost all new small businesses. You have been playing with your market and demographic, and now you are seeing results.
At this time, your current plan is probably completely different than the original one. Slow down. Stop, assess and redirect your money, your marketing, and your vision.
Step into your new space and own it.