There are 6.5 million new businesses launched annually. But how many times have you heard that 90% of those new businesses fail? To put things into perspective, here’s a rundown of the average failure rates by year:
• First year: 21.5%
• Second year: 30%
• Fifth year: 50%
• 10th year: 70%
Of course, this data comes with several caveats: outlier events, industry variance, and reporting errors. What we do know for sure is that there are still businesses that succeed despite the odds.
While it’s true that only a select few small businesses succeed, you shouldn’t be discouraged; you should be more determined to work towards success.
A solid business plan is one of the most important things that gets your brand off to a good start, but it becomes even more important further down the road, when you’re planning to expand and scale your business.
Revisiting the brand purpose and vision that you set at the beginning could help you gauge the business’s performance.
Are you any closer to your vision, and have you stuck with your purpose? These are things that you need to be asking yourself. If the answer is no, then maybe it’s time to restrategize and rethink your methods to get you closer to your goals.
A lot of businesses start off as sole proprietorships or general partnerships, and that should be fine to get you going. However, as businesses grow and stakes get higher, switching to an LLC structure or even incorporating your business may be prudent.
In sole proprietorships and partnerships, you and your partners are held responsible for any debts and liabilities incurred by the business. An LLC structure allows you to be legally independent from your business should things fall through, benefitting and protecting you down the line. Incorporating your business will likewise protect your personal assets, as well as help you secure better funding for your future. Go through your data from the past few years and see if any changes need to be made.
How does your original financial plan measure up to actual day-to-day expenses? You should be open to going back to the drawing board to figure out and make necessary adjustments.
Updating your plans would also allow you to prepare contingency efforts and secure more funding, should things come to that. Remember: the worst thing you can do when trying to grow is to go about it unprepared. Account for any and all potential failures and ensure that your core business will be able to survive should your attempts to scale fail.
A number of businesses fail due to a market-product disconnect. These days, trends and consumer behavior change so rapidly that you need to be agile and creative in your approaches.
Grant Leboff, CEO of Sticky Marketing Club, advises you to ask the question, "Why am I uniquely placed to solve the problem?" This makes sure that your purpose, brand, and target market are in alignment.
Answering this key question allows you to offer the most attractive product or service to the type of client you want; otherwise, this could lead you to retargeting your audience.
With the staggering amount of available technology, not taking advantage of them would be reckless. The retail industry is hugely dependent on consumers, so you can take to social media to reach them faster.
Highlight your edge and deliver your message using engaging content. And don’t shy away from interacting with your audience, either.
A reliable and seamless POS system could do wonders for a retail brand. It’s definitely more than just a check-out point for transactions. In fact, a good POS system:
You can access a real-time record of your inventory. With every transaction made, a POS system automatically updates your inventory database.
This eliminates the need for rigorous training every time you get someone new onboard.
The Bindo POS, specifically, allows you to view your inventory reports, sales reports, and analytics dashboard from anywhere. It also sends you alerts when stocks run low, and even assist you in ordering from your supplier. Equip your business with a great POS system today
In the retail industry where national supermarket chains and big-box stores tend to dominate, it’s even more important to work hard to grow your business!
His reputation preceded him. Your co-workers scattered when they saw him coming, but you were too new to know any better so you asked how you could help. His first comment to you: “You’re new.”