It is well-documented that the majority of new businesses fail. The odds of success may be long, but there are plenty of aspiring entrepreneurs who win big. Whether you’re preparing to launch a new venture, or you’re on a mission to expand and grow your business, here are some survival tips to help you beat the odds.
Cash flow is one of the most significant barriers for business owners. If you find yourself chasing payments, you’re owed money for unpaid invoices, or you’re struggling to cover bills from suppliers, this could spell disaster. The best way to avoid financial troubles is to keep a close eye on your finances from the outset. Implement procedures and streamlined, efficient systems to monitor your income and outgoings, specify payment deadlines and don’t hesitate to seek advice if you don’t have experience of bookkeeping or access to an in-house accounts department. Budgeting can be challenging, and there are also additional concerns to factor in, such as compiling and submitting tax returns. Working with professionals like making tax digital experts, MNE Accounting, can help you keep a firm grasp on your finances and benefit from sage advice related to taxation, managing expenses and increasing profit margins. It’s particularly crucial to track spending and monitor cash flow at the start of your entrepreneurial journey and if you plan to take the next step and grow an existing business.
There is always room for improvement in business, and it pays to analyse your performance and to be prepared to make changes. Make use of data collection and analysis tools, invite customers to leave feedback and rate your service and look at your sales figures closely. You can use up-to-date data to highlight areas where you’re excelling, as well as identifying potential weaknesses. Listen to your customers, address concerns and complaints and strive to improve.
Every business owner will encounter competitors. Competition drives markets and improves standards for consumers, and it’s vital for a strong economy. As an entrepreneur, it’s critical to be aware of what your rivals are doing and to take steps to identify and embrace emerging trends and respond to consumer preferences. Make sure you have a USP and up-sell it at every available opportunity. Customers should be able to see why you’re different to other companies and what they can gain from choosing you. The business landscape evolves constantly, and it’s vital to be flexible and agile to stay ahead of the curve and ensure that you are the most attractive proposition for clients and buyers.
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The statistics for new businesses are sobering, but there is a chance to beat the odds. If you’re looking to survive and thrive, it’s critical to manage your finances, to analyse your performance and listen to your customers and to make sure you’re aware of what your competitors are up to. Following these steps from the outset and planning growth strategies in advance can help you tip the balance in your favour.