While starting a small business can be a tough experience, especially if it’s your first time, staying in business is even more challenging.
Studies have found that close to one-third of small businesses close down by their second year of operating, and the numbers only go up from there with each subsequent year.
It’sIt’s important to keep your chin up and keep pushing forward.
Fortunately, there are many dos and don’ts of running a successful business, and it pays to know them early on, preferably within the first two years in business.
This article will show you some business survival tips that can help you thrive for years to come.
1. Develop a solid business plan and stick to it
Poor planning is one of the biggest reasons for small business failure. Without a good plan, it’s difficult to differentiate yourself from competitors and target the right customer group.
Rather than going in all guns blazing, take a step back to analyse your current position and where you sit in your market. Identify your strengths and weaknesses and see if there are any opportunities you can exploit.
Set your business goals early on but make sure they are achievable. Above it all, keep revisiting this plan as things change to ensure your priorities are where they need to be.
You don’t want to get to a year on and realise you’ve lost sight of your vision.
Ensuring you create a system so that you can measure your success could be another important aspect of your business plan. That way, you can give it a health check every now and then to ensure that your business is doing well.
2. Ensure your financials are in order
Another common problem is a lack of financial controls and poor record keeping. Keeping accurate financial records is essential to keep a business afloat. Every month, review your revenue and expense reports and file business-related filings. Reach out to an accountant or financial adviser if numbers arent your thing. Having a professional in your corner can help you keep your business stay financially on track.
3. Sorting out your business insurance
Whether you are running an IT business or are a sparky fixing the wiring in houses, small businesses have one thing in common: exposure to risk. Business insurance is designed to protect you from the risks you may face in your business journey.
Without it, you could be held liable for a claim made against you, which could be disastrous for your business. Even if it’s not your fault, claims can run into the tens of thousands, and you may be forced to close up your business and become another statistic.
Fortunately, sorting out your business insurance is easy through the online platform BizCover. Covering more than 6000 occupations across Australia, you just need to jump online and compare quotes, and you’ll likely be covered in no time.
3. Adapting to the needs of your customers
Adapting to the needs of your customers is an important aspect of running a successful business. Customers are constantly evolving, and you can make sure that you are meeting those needs by listening to their concerns and asking them what they want from your small business. Setting up feedback prompts through social media platforms or by email marketing can help you learn and engage with your customers.
4. Taking a break every now and then
If your business relies heavily on your work, it’s important to get a break every now and then. Not only will this refresh your mind, but it will also give you fresh energy to come up with new ideas. It’sIt’s also essential to maintain good health, and running a small business can put a lot of strain on your body.
Taking a break is vital for everyone. It helps to refresh your mind and boost productivity. Even taking a few minutes off can give you some time to breathe, reorganise your priorities, and recharge your energy. It also helps you focus better and perform better.