Last Updated on May 26, 2019 by Jessica Adams
So, you’ve finally done it. You’ve finally quit that dead-end job after figuring out how to NOT become another failed business in your first year. It took a whole lot of preparation but it looks like you’re finally ready to go.
You’ve spent tireless months doing market research and perfecting your business plan. You’ve raised the necessary capital in order to purchase your business location and now it’s time to launch that business!
But while you’re raring to go, you’re also wary. You know that 50% of small to medium sized businessses don’t make it past their first 5 years of trading. And that of those, only 25% make it past the 15-year mark.
If your business is to survive and flourish in an increasingly fast-moving and competitive landscape, you’ll need to take steps straight away to ensure its longevity.
Follow this advice about how to NOT become another failed business in your first year. You’ll see that year after year of sustainable growth, less prepared businesses all around you may flounder.
How To NOT Become Another
Failed Business In
Your First Year
Know Your Limitations
Being an Entrepreneur takes a very particular mindset and a whole lot of guts. But the very self-determination and work ethic that make great Entrepreneurs can also be their downfall. Unless you’re ready to seek help when you need it, you could find yourself burning out.
That said, you should be prepared to invest in outsourcing certain areas of your business such as Virtual Assistance, Social Media Management, and IT Consulting; check out https://www.athensmicro.com/solutions/it-consulting/ for more information on how outsourcing your IT can facilitate growth.
Other services like Human Resources and Digital Marketing are also best outsourced until you have grown enough to be able to accommodate your own in-house services.
Avoid Becoming a Micromanager
You’re passionate about your business and want to make sure that your brand isn’t compromised by lapses in the exacting standards on which you insist for your business.
But as understandable as this passion is, it should not lead you to relentless micromanagement. Not only could this potentially drive a wedge between you and your employees, but it’s also rarely the best use of your time.
You need to be able to strategically manage your business and this can’t happen when you are secretly checking over everyone’s shoulders. It’s a tedious job, that of a micromanager and one that isn’t very popular among small businesses.
Don’t Be Afraid to Invest In Your Business
As an Entrepreneur, it’s only natural that you may be conscious of overhead costs and what can happen if you don’t take steps to keep them under control. Just be aware that under-investing in your business can be just as crippling as reckless spending.
The later here gets a lot of attention because of most new business owners’ exhausting ability to outspend themselves! During your first year in business, you’ll be lucky enough to turn a profit or at least, have very low overhead costs.
If the latter happens here, don’t be afraid to funnel some of your profits back into your business for research, development or capital investments. These investments could absolutely facilitate growth and improve productivity.
Always Be Prepared For the Next Big Thing
The world is changing at a blisteringly fast pace. Businesses need to be aware of how trends in consumer technology can affect the way they operate. It’s important to stand by your products and your overall business model.
In fact, having conviction in your business methods is a wonderful trait. But being so inflexible that you condemn your business to obsolescence is quite another!
Remember what happened to Blockbuster video? The company refused to look at the emerging world of digital content and its availability online.
Long story short, BBV phased out until they went bankrupt. They thought consumers would stand by their “beloved video store experience”.
What they didn’t count on was that their customers just to get the product as quickly and easily as possible. Digital content and streaming video were of course, pioneered by Netflix.
Did you know that BBV has the chance to BUY Netflix for $50M and adapt its tech for BBVs future in online rentals? BBV said “No thanks” and the rest is literally history!
Jessica Rose Adams
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