As of 2023, there are 33,185,550 small businesses in the United States of America, but despite the whopping figure, getting started isn’t a small feat. After all, 21% fail in the first year, 28% fail by the second, 48% by the fifth, and 65% by their tenth. It takes a lot of hard work, determination, and key lessons to survive.
Downtown Nixa Mark Anderson explains that from understanding the target market to learning from others to staying on top of finances, wannabe entrepreneurs should learn to navigate the following before gallivanting into the fast-paced business climate.
No Business Targets Everyone
Even large box stores that appear to have something for everyone aren’t targeting the general population. And while it’s easy to think new products or services will have widespread appeal, that isn’t the reality.
Those who are looking to launch a business should find the people who will genuinely love their stuff and target them. Understanding buying habits is key here to ensure products or services actually end up in front of the target audience.
Mastering startup marketing is an art. It allows entrepreneurs to make stonking returns when achieved.
Customers Aren’t Always Right
While customers aren’t always right, they’re needed to grow a business. When they’re unhappy but definitely wrong, there’s a fine line that must be walked to come out on top.
Listening comes first. Then, it’s up to the entrepreneur to weigh their options — should they give a bit to appease someone who’s having a bad day? Lastly, it’s sticking to principles. Regardless of what business owners do, some people will never be happy.
Companies that build themselves around those who complain are always destined to fail.
Learn From Those Who Came Before
Businesses fail for many reasons (e.g., flawed plans, no plans, misreading markets, etc.). However, they almost always share one common factor — the entrepreneur tries to do everything themselves.
No one individual has the knowledge, perspective, or experience to handle every situation that may arise. Thus, networking and building a team is essential to the longevity of the brand-new business.
Stay On Top of The Numbers
From start-up costs to projected profits to cash flow to sales to more, staying abreast of all the numbers involved with a business is the only way to know how it’s doing and where it’s potentially headed.
One of the main duties of a business owner is to make quick yet effective decisions, and understanding the business economics will ensure these are made.
Cutting costs where possible is a good rule of thumb, but entrepreneurs must be aware that cheap only lasts so long — value is forever.
Business Account Doesn’t Mean Piggy Bank
On the finance topic, everything money-related needs to be organized. According to American Express, it’s the most important part of running a business.
A CPA and bookkeeper can help entrepreneurs keep on top of their finances to guarantee everything keeps ticking along nicely. Plus, they’ll help separate business expenses from personal purchases! Despite what many believe, not everything can be classified as a business buy.