Here's some alarming news for anybody thinking about starting their own business.
According to published statistics, a reported 80% of new businesses fail within their first year!
The survival rate drops further as, according to the article we just linked you to, only 44/1 % of businesses make it past their fifth year. The figures are enough to put you off starting your own business in the first place.
On the flip side, of course, not every business is doomed to failure. Many entrepreneurs do survive past their first year, so the future doesn't have to be a bleak one. And so it is with you if you are thinking about starting out on your own. Your future isn't set in stone, despite the statistics that put many of us off our morning cornflakes. Your business might survive, so consider our suggestions below to give yourself a fighting chance.
Come up with a marketable business idea
To survive in business, you need customers! That's a no-brainer, we know, but if your product or service idea isn't marketable, then you are hardly likely to win over many people to your side.
So, commit to market research to find out what it is people want in your local area. There are some ideas here, https://entrepreneurhandbook.co.uk/how-to-research-your-idea/, on how to do this.
Alternatively, rather than starting a business from scratch, you might consider buying a franchise instead. A good franchise will have made inroads into the market already, so you don't have to come up with a winning business idea of your own. Franchise consultants, such as the good folks at https://www.limelicensinggroup.co.uk/, will guide you as to the way forward if this idea appeals to you.
Whatever route you take, you will have minimised the risk of failure if the business idea you decide on has marketable value.
Don't bankrupt yourself in the early stages
Many business owners start out in debt, thanks to the business loans they have procured to kickstart their companies. This is all very well and good, assuming they make a profit to return money owed, but if they don't, they will soon find themselves in financial difficulty. Don't fall into this trap!
If you can raise money for your business without taking out a loan, you will start off on better footing. So, you might consider crowdfunding, angel investing, and good old-fashioned saving up, for example. And even if you do need a loan, you will have less to pay back if you have already raised some of the funds yourself.
When your business has started, don't waste money. Buy office furniture, computer equipment, etc. second-hand instead of blowing your cash on items that are going to derail your budget. Use the ideas here, https://www.muitsun.com/marketing-on-a-budget/, to promote your business frugally. And find ways to cut costs for all of your other business expenses.
By taking these steps, you won't be forced to close your business because of a lack of finances.
Ask for help - seek the advice of other business professionals, meet with an accountant, and outsource tasks you can't manage successfully. With the right support, you are less likely to make any mistakes.
Work hard - you don't want to burn yourself out, but you do need to work hard if you want your business to succeed. Prioritise your time and give your business what it needs to succeed.
Don't give up - you will face obstacles in your way, but there are invariably going to be solutions. Again, seek the advice of others, and maintain a positive mindset to give you the determination to succeed.
Will you survive your first year in business? We don't have that answer, but should you follow our suggestions, you might just make it. Commit to further research online to improve your chances further.
We wish you every success!