When you start a business, there are many things to consider—starting from a groundwork plan, finances, sources, staff, marketing, advertisements, and much more. Missing out on any of the things might result in business failure.
It is often said that more than half of businesses fail in the first year. However, according to the US Bureau of Labor Statistics, that is certainly not true. According to the BLS, more than 20% of the business fails to deliver during the first year of the business, while 45% within the five years, and 70%. Only 20% of the business survives its 15th year.
These records are far better than we believe, but there are more failures from a business perspective. Here we have enumerated a list of factors where you should concentrate on the first three years for success.
If you are in the business industry, then you certainly know the effect of having a solid practical business plan. Your business will never be successful if you do not have a plan that outlines a map to reach your goal.
Having a sound plan will help you figure out all the inlays and outlays of your business. It will help you figure out the cost of the input and out of your business. Once you have the plan, you must follow it.
Now that you have a plan that you know will work for sure. Then instead of trying new things, stick with the plan. Otherwise, it will create an imbalance in the business, resulting in failure.
Finance is the building block of the business. If you feel short on finances, you will see your business deteriorating. Hence, before you jump into the business, make sure that you have enough financial support for planning that will lead the way.
Remember that loan is always not the solution, and certainly not in the case when you are already in a bad situation. The best way to overcome financial problems is to be practical about the solution. Do not be optimistic about it. As you know, money does not grow on money plants. Be practical and, if possible secure enough money before starting the business.
If your business has foot traffic, then the location has a major role to play. You can set your business in a place where you have no customers or in a place where there are too many competitors. You need to know that location is best when there is a market for you with very few competitors.
However, with the offline business, you will have to work hard to create awareness about the business. The best way to deal with this problem is to create an online presence and take the local social media communities’ help.
The world is shifting its focus to online presence and digital media. Hence, having an online presence for your business will be the best way to market your brand. An online presence will let the people know about you, and if they feel that you are the solution to their problem, they will certainly engage with you.
Once people recognize your online presence, the next thing is to market your services and products.
Amidst all the chaos going around with the new businesses, people tend to forget about the most important fact about their business, legality, and recognition by the government. Now that you are already in the sales business, you will soon become familiar with the sales tax return. A sales tax return is the tax you have filed to the central authorities for the sales you have made by selling products.
Being new to the industry, we can understand that this might become an overwhelming challenge for you. In that case, you can take help from sales tax software applications. They offer one of the cost-effective ways and help with sales tax return filing.
Though the rate of business failure in the first three years is 25%, that doesn’t mean you have to be in that percentage. You have to see that no matter what’s happened to businesses, 25% of the business could see their 15th business year. You need to be optimistic and flexible with the plans so that you can bend your strategies at a moment’s notice.