Starting a small business and ensuring its survival is no easy feat. Most new businesses close before their fifth anniversary. But don’t despair. There are techniques to improve your business’s likelihood of success, and almost all involve applying proven methods that are easy to learn.
It comes down to doing what’s right, when it’s right. By applying solid fundamentals, you greatly increase your chances of success.
Here are 7 steps to put your new business on the path to success.
1. Proceed methodically. Don’t take excessive risks.
In a recent study, titled Portrait of the Businessman as Predator , Michel Villette and Catherine Vuillermot argue that, contrary to popular myth, highly successful business owners such as Ted Turner, Sam Walton and Bernard Arnault did not not as great a propensity to take risks as one might think.
These famous business owners behave more like predatory animals, moving slowly and cautiously, minimizing risks and striking at strategic moments, when the odds are in their favor.
2. Plan effectively
Every effort you put into planning exponentially multiplies your success at the execution stage. For a new business, everything depends on a business plan .
Successful business owners write down specific goals. These individuals devote considerable effort to key tasks such as studying their target market, defining marketing strategies, and compiling cash flow forecasts. They also make useful contacts within their industry.
3. Define an effective value proposition
This may seem complicated, but it’s simply about making sure your products or services are more appealing to customers than those of your competition.
Successful business owners know that no matter the quality of their offering, customers will be attracted only by that offering having a clear comparative advantage.
4. Surround yourself with the right people
Even if this person excels in a particular field, it is rare for an entrepreneur to be a specialist in everything (sales, accounting, operations, law, etc.). Talented business owners know how to surround themselves with effective teams to achieve the desired results.
5. Plan financing
This crucial step is normally part of good planning. Financing is the oxygen essential to the survival of a business; if it runs out, it is likely that it will die, even if it has a lot of potential.
Successful business owners take steps in advance to ensure they have access to the necessary financing . Investors, partners and potential lending institutions are much better able to support a business when they are provided with detailed plans from the outset.
6. Find sources of help
Federal, provincial and municipal governments and agencies offer a range of resources to help business owners launch their new business.
Furthermore, more and more incubators and accelerators specialize in business start-ups. These organizations are very useful for business owners who want to expand their business network and work in a collaborative space.
You should also take a look at your chamber of commerce, economic development centers or business leaders’ associations. Many of these individuals have mentoring programs that pair new business leaders with experienced leaders.
7. Think long term
When entrepreneurs start a business, their efforts are naturally focused on the first weeks or months. However, in many industries, supply cycles can be much longer.
For example, someone who develops new software during the first year will then have to spend considerable time marketing it. By “thinking long term,” business owners can ensure they have sufficient resources to put their business on a solid foundation.
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