Small Businesses: Why Do Some Succeed? Why Do Some Fail?
Many are the person that has started up a small business only pay day direct lenders only to have to close up shop. Many are the person that has started up a small business and succeeded as well. Is the difference if they make it or not simply luck whether small businesses fail or succeed?
Clear Choice Staffing Solutions is a small business and we appreciate the hard work that goes into making a business successful, and we have been blessed. We’ve also been lucky and we know that as well.
But there is more than just being blessed or have good luck too. Today, we’re going to go outside our blog theme for the month, graduates getting that first job, and talk about why a small business succeeds. We’re also going to take a look at some reasons why a small business fails.
1). Have A Firm Business Plan with Profit Centers: Without adequate funding such as a line credit, a loan or simply having a cash flow, any size of business can’t succeed. You must have a firm understanding of high margins and profit centers. A small business needs to have strong management and the ability to change with business demands.
2). The Right Reason: If a business isn’t started for the right reasons, like a love of what you do or a passion for something, it won’t be successful. A business owner needs to be healthy and full of energy both mentally and physically. A positive attitude and determination to succeed is a must.
3). Unique Value Proposition: Having a product or service that is different from others is needed to payday loans payments be a success. Any business needs something that makes it stand out above all others. A business should set the pattern for which all others want to copy.
4). Respected Leadership: A new business owner should always be open to ideas from the team. Maintaining good communication and be strong with their decisions, but with a critical eye. A business owner has to realize that their ideas are not always the best.
5). Profitable Business Model: Having a product or service that will have an increase in demands monthly, yearly. A small business owner has to have control over expenses and not hesitate to eliminate anything that is costing but not producing. Must be aware of how much money needs to stay in the kitty for business development and how much you can take without the business suffering.
6). Have An Online Presence: In today’s world, if you don’t have an online presence, you’ll either struggle or worse, fail. More than 80% of today’s consumers research a product or service before making a decision or purchase. You need to be there.
7). Be Nimble To Adjust: Customer loyalty isn’t going to keep you in business. A consumer will jump brands quicker than a squirrel will jump from tree limb to tree limb. Flexibility is the name of the game in today’s business.
1). The Wrong Reason: If a small business is started simply to make money, have more time for the family or simply to be your own boss, the business will fail. You have to have something payday loans richmond va deeper and have a goal.
2). Poor Management: Without any type of business experience or knowledge, success is unlikely to come. A business owner should have some background in finance, hiring, production, purchasing or selling. And realize that the market changes continuously. No matter how well you know a market when you were in sales, it will change and then change again.
3). Lacking Capital: You have to have money to make a business go and that means beyond opening day. You have to have a cushion to not only run the business but to live on personally because there will be lean times ahead.
4). Websiteless: A business today without a website is doomed to fail. That online presence is a must in today’s busy on-the-go world of consumers.
5). Location: If your business is going to need walk-in business to succeed, you need to pick the right location for the business. You need plenty of parking and a well-lit parking lot.
6). Quick Growth: If your business seems to be growing, be careful in expanding your square footage. Whatever product or service you may be planning on putting in that space needs to be able to sustain itself financially.
7). No Plan For Growth: Without a business plan, you don’t have a goal to reach. You need to pay attention to what your competitors are doing, or not doing, and measure their success to yours. Be sure you understand every aspect of what things are costing your business.