Did you know that only about half of all small businesses are still open at the 5-year mark? About 80% make it through the first year, but after that, success rates decline sharply.
If you’ve recently started a small business, you want to be in that 50% that’s still around in 50 years, but how do you do that? What makes small businesses succeed? If these questions are on your mind, you are in the right place.
Here are 5 tips for small business owners to help ensure success.
1. Know The Relevant Laws.
Knowing the legal requirements of starting and operating a small business is most likely not going to be the most exciting part of starting your business, but it’s totally necessary.
You need to understand financial and tax rules, how to do payroll (including taxes) if you have employees, insurance requirements, employee benefits, and much more. There are many financial regulations in business, so access to a program like Quickbooks Enterprise is a wise investment.
2. Understand Your Niche.
A great way to succeed is to find a niche and corner the market. Think of the different inventions on Shark Tank. Most of the contestants have identified a need and created a product to meet that need.
If you find a niche that needs to be filled, understand that niche, and provide a service or product that no one else is providing, you can pave the way to your success. Others will inevitably catch on and start their own similar businesses, but you’ll be the original.
3. Be Flexible.
While you might be the expert in your niche at the beginning, you might find that things evolve and your customers want something different. Your business needs to evolve just as customer needs and wants evolve.
If you are so rigid and refuse to change to meet customer or client needs, you’ll often get left behind.
4. Never Stop Networking.
Initially, networking is necessary to get your business off the ground. Once that happens, don’t let networking fall by the wayside though. You’ll need new customers and clients eventually, and the continued marketing will also help you build a network should you plan to diversify your business later.
5. Take Care of Yourself.
This is a tough thing to do when you are starting a new business. Many new business owners put their heart and soul into their new business, to the detriment of their health and happiness.
Not getting enough sleep, not exercising, eating poorly, and letting yourself become stressed out can lead to long term health problems and burnout. Make sure you are taking care of yourself and taking the time to do activities that you enjoy and maintaining your health.
Tips For Small Business Owners to Ensure Success.
Use these tips for small business owners to get your business up and running and then revisit them often, to make sure that you haven’t lost sight of them. Don’t be part of the half of all businesses who don’t make it past 5 years!
If you found these tips helpful, be sure to check out some of the other posts and resources on our site!