Approximately 85% of startups survive their first year in business and of those, less than 70% survive their second year in business. By the 5th year, that survival rate is down around the 50% mark. But there are several things you can do to arm yourself for success.
1. Have a strategy and road map in place
You probably wouldn’t go on a holiday without knowing where you’re going and having some planning in place. And it’s important to review it each quarter to see what you need to change depending on changing market conditions and what your customers want.
2. Have a plan and forecast for cashflow
It’s unlikely you will have cash rolling in the door from day one, so you need to plan for your establishment costs and also several months of cashflow so that you can survive until the funds start coming in from customers. For some businesses that’s 3 months, other’s it’s much longer. A lack of funds is one of the biggest killers of business – it’s like oxygen to the business.
3. Listen to your customers!
There’s no point having the best hot coffee at the beach if the customers are chasing cold, refreshing drinks. You need to listen to your customers always, as the market demand can change over time.
4. Build a strong team
Surround yourself with a team who are motivated and adequately skilled, so you can focus on what you are good at and employ people to do the things you struggle with. Having strong leadership in areas of finance, marketing, sale and operations can help build an engaging company culture that supports the company’s vision and mission statements.
5. Consider your global strategy
Small business can now have access to the world like the major corporations thanks to social media. Why limit yourself to a smaller local market when you could potentially be servicing thousands of customers in other countries. Just make sure you do your research on the different market environments and what your customers want, as cultural sensitivities and other factors can come into play.
To have a strategy session with us before you launch your business, just click on the 20-minute free consultation link.