Studies have shown that small businesses have a 50/50 chance of surviving the first five years of trading. However, although statistics have improved, it does not mean that new businesses do not fail. There are certain pitfalls the new business person needs to avoid at all costs in order not to be one of those statistics.
Listed below are several points that will certainly be of benefit to a small business just getting off the ground:
- Create a website for the small business.
2. Ensure that there is enough capital to begin and continue trading
3. Know why the business is being set up
4. Choose the right location for the business
Having a website right from day one means the small business is targeting the whole world. It opens doors to the business which would otherwise remain firmly closed. On average 70% of the population in The States alone has Internet access and these figures can only go up. But it is not enough to have a website because it needs to one that is professional and well designed with good SEO behind it. If the budget allows get a search engine optimization specialist to plan the site before the designer even starts work on it. Websites will generate business, it will give the business the opportunity of selling ad space to others and linking to other similar sites.
A stumbling block for any small business first starting out, is the lack of capital. Working capital is an absolute must for any business. It is wiser to be prudent about sales than over optimistic. Remember that it takes time for a new business to get established and bring in the revenue that is hoped for. Unless the business is an instant success there will be a period of time when capital is needed to support it.
It is vital to be dedicated to the point of being passionate about a new business. Investigate the market place to know that the product or service will fill a gap or a real need. Strength of mind is important as well as physical health added to drive, determination and patience, the owner of a new business will be able to overcome any hurdles they may encounter. It is better to learn from any mistakes that are made than be defeated by them. Stay independent and learn how to take charge at all times. It is of the upmost importance to keep to any promises that are made in the business place.
The location that is chosen to set up the business is of paramount importance. The wrong location for a business spells failure from the start even if it is the best idea or product in the world. It is important to know:
- If the site is where the customers are to be found
2. Is the site accessible and does it have easy parking available close by
3. Are there any incentive programs available to small businesses in the area
4. Will local people be interested in what is on offer at the new site
5. What business, if there was one, used to have the premises and why did they leave
Most successful people in the business world never even entertained the possibility of failing. This goes a long way when it comes to succeeding in a new venture no matter what it is.