In the world of small businesses, research shows that only 10% continue to succeed past the fifth year in business. It does not matter if the business is online or brick-and-mortar, nearly 90% of all new businesses fail within the first five years.
HOW CAN YOU BEAT THE ODDS AND HAVE A SUCCESSFUL BUSINESS?
1. Learn about your customers.
You should get to know who your perfect customer is. Without knowing your potential customers, you will not know how to reach them, or what to sell to them. You should always know your customers, whether you are catering to men or women, young or old, single or married, etc. It is easier to target customers when you know what groups you are trying to reach.
2. Know what customers want.
Many customers fulfill their wants rather than needs. People follow their emotional needs and then try to rationalize it. It is much easier sell something that people wants rather than needs, so you should figure out what want you should sell.
3. Know your competitors.
It is always a good idea to know what your competitors are selling and how they are doing. Some businesses have already saturated some markets, so you do not want to open something similar. You need to have something interesting that people want to buy, so why not get them to buy it from you?
4. Know how to reach customers.
Customers need to know that your business exists. If you cannot reach them to let them know you exist, how will you make money and be successful. A niche market [http://web.archive.org/web/20131128083640/http://www.entrepreneur.com/encyclopedia/niche-marketing] might sound like a great place to do business, but if those people are difficult to reach, then you will not succeed.
5. Consider the costs.
Starting a business can be very expensive. You will have to invest time and money. Websites and marketing are rarely free. You might have to pay for training and other business expenses. It is very important to stay aware of how much money is going out of your account and how much is coming in.
6. Keep your business manageable.
Once a business gets started, most of them require more resources. From people to money, you will need to add to your business to keep it going. It is impossible for business owners to cover the growth on their own, because no one can work 24-7. You will need to make your business manageable so that other people can help you keep it going.
7. Be willing to work.
No business will take off over night. Every new business requires its owners to work. You have to be willing to work and enjoy working to get your business to grow. Too many business owners think their businesses will just take off immediately and they regret how much they have to actually work. Your time will turn into money, but you have to put the time in.
8. Be ready to learn.
You will not know everything about owning a business; therefore, you should know that you will have a learn curve. In many cases, new business owners only learn from other business owners and they also learn from their experiences. If you do listen and learn from other business owners, you will learn to avoid the mistakes that end up closing too many businesses