Gallup recently reported that approximately 50 percent of all businesses fail within the first five years–mainly because of money or supply chain problems or regulations that make it more difficult for companies to operate. While a 50 percent failure rate is certainly a daunting statistic there are several key steps you can take to better ensure the success of your business.
Keep Apprised of Competitors
You probably researched your competitors when you decided to enter the market, wondering what prices they charge for their products or services and ascertaining what markets they serve. But competitive intelligence must become an ongoing endeavor if you want to keep your business running effectively. Scour competitors’ websites to determine their latest strategies. Search for advertisements they’ve placed. You may find that they’ve mentioned something less than flattering about your company and find it necessary to counter those statements.
Stick To Your Budget
Create an annual plan and budget and stick to it. Keep your expenditures in line with those in your industry. For example, if others are allocating 15 percent of their advertising mix to social media, which is about average, don’t exceed that amount. Look for ways to cut costs for items like office supplies by ordering wholesale and maintaining a log on who uses what.
Always Under-Promise
The worst thing you can do as a business owner is to promise special services or unreasonable deadlines when you can’t meet them. Stay within your capabilities with respect to consulting, designing, product quantities or whatever you sell. Keep track of how long certain project tasks take and use those averages to set deadlines. Allocate a little extra time for ad hoc requests or unforeseen problems or events.
Use Contractors
Whichever industry you’re in, labor is likely one of your biggest expenses. Instead of inundating small departments with too many projects they can’t complete on time, outsource your work to vendors. These bookkeepers or market research suppliers can often accomplish much more at a lesser cost, and you won’t have to pay their salaries or health insurance. To get the best rate, bid the work out to at least three contractors. Select the one that best meets your needs at the lowest price. Considering using a PEO broker, which can coordinate payrolls and health benefits and monitor government regulations that affect your business. They can also keep you moving forward to achieve your business goals. Tailored Solutions is a great resource for more information on PEO Brokers and how to run your business smoothly.
If you follow these basic principles you can keep your business running efficiently and successfully for many years.
