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You’ve likely heard more than a few horror stories regarding business failure if you’ve decided to pursue an entrepreneurial venture. Check the grim statistics, and you’ll find that ninety percent of new business owners are unable to meet their goals and sustain their operations. But in reality, the prospect of taking the entrepreneurial route is not as bleak as it appears.
Granted, the chances of a startup surviving past the fifth year aren’t great, especially with the ongoing COVID-19 pandemic. However, you don’t necessarily have to leave your fate to chance. By adopting a few smart habits, you can set yourself up for growth and success, even as a new business owner. To this end, here are some strategies you need to keep in mind if you want to succeed in your endeavor.
Develop a robust business plan
When you aren’t in need of a bank loan or investor to fund your operations, it can be tempting to skip out on creating your business plan. However, developing one is an excellent way of honing and refining your vision, whether it’s determining problems to resolve or establishing a timeframe for the launch and profitability of the venture. While coming up with hundreds of pages for the document isn’t necessary, the plan must be robust enough to identify the ideal market and ensure the feasibility of the model.
Keep business expenditure low
The majority of startups fail primarily because they end up running out of funds to support their businesses. Therefore, it makes sense to ensure that expenditure is as low as possible, especially if you’re only starting out. For example, you can explore a few ways to lower your utilities, like using solar panels or adopting green practices since they do take up a considerable portion of business costs. Also, rather than keeping all of the work in-house, you may want to consider outsourcing work beyond your level of expertise to a third party as it can help alleviate the financial burden.
Acquire proper coverage is important for a business owner
Mistakes can and will happen in business. There are no two ways about it. Because errors and mishaps could potentially lead to additional expenses that a startup can ill-afford to shoulder, it makes sense to keep it protected with the proper coverage. For example, getting workers comp insurance online will allow you to give your company and employees financial support in case of workplace injuries, lost wages, and medical expenses, among many others.
Continue expanding your network
When it comes to business, the more connections you have, the better you’ll fare. Anyone has the potential to be sounding boards, prospective partners, and customers. So always make sure that you continue to build and expand your network. It may not sound like a big deal, but knowing the right people can make a difference.
Becoming a business owner can be a stress-inducing and risky endeavor. But it doesn’t always have to be the case. With these strategies, not only will you help your startup succeed, but you’ll also alleviate some of the tension and pressure of running a business.