21 Tips to Ensure Small Business Success
Considering starting a new company or a home based business? Take a look at these small business success tips before you begin . Take them to heart and make them part of your business plan.
- An active written business plan
- Effective control over costs
- Strategic pricing of goods sold
- Promotion of a strategic public image
- Implementation of technological aids
- Professional advice utilized
- Reduction of small business taxes through extensive tax planning
- Adequate insurance
- Above average product quality
- A killer sales department
- Ongoing staff training and retention of key personnel
- Awareness of competition
- Prediction and adaptability to market trends
- Adequate working capital
- Accurate and timely financial reports
- An excellent–high traffic location
- Two-way communication with family members
- Choice of the correct business partner
- Establishment of a working relationship with a local banking officer
- Operation under the proper strategic legal form of business
- Learning how to learn, school is never out for the pro
So what is the #1 reason small businesses fail?
According to the Department of Commerce 8 out of 10 new businesses will close their doors in the first 5 years of operation. Did you understand what you just read? – 8 out of 10 would be ENTREPRENEURS become ENTRE-MANURE in the first 5 years.
Holly COW! ,. . . what an alarming statistic – that so many people in pursuing the American dream will fail . Why is that?
The most common answers of why companies fail include the following:
- Lack of a business plan
- Not enough working capital
- Bad Location
- Poor Management
- Taxes-and the failure to take advantage of small business tax deductions.
Question: Who started the business without proper planning?
Who started the business without enough working capital?
Who chose the terrible, stupid, bad location?
By the way, who was the poor management?
Answer: You, you, you, the new small business entrepreneur , the would be super-star entrepreneur did all of that and made all those bad decisions . It’s you, period. What in the world were you thinking?
Now don’t be too hard on yourself, most people are no better off than most of you when it comes to operating your own business . This is difficult stuff to do.
But here is the TRUE #1 reason why most companies fail.
Most small businesses are not FEASIBLE from the get go .
In other words the company could never create enough sales, to pay for the cost of sales, to pay all the operating expenses, to pay the notes and have enough green cold hard cash left over in order to pay the owner a reasonable salary.
That’s it in a nutshell; most small companies just can’t succeed because they are not feasible to become a viable profitable operation from day one .