Studies have shown that approximately 20% of small businesses don’t make it past their first year. This is for a number of reasons but many times these issues can be addressed early on.
It’s possible to set yourself up for long-term business success without confusion and overwhelm. Keep reading for 7 tips on how you can achieve small business longevity.
1. Start With a “Why?”
Before you worry too much about completing your business plan, think about what motivates you most to want to achieve small business success in the first place. Your “why?” is something that keeps you going when the road gets tough.
Some people say their “why?” is their children or legacy. When times get hard, remind yourself of what you committed to for inspiration. The stronger your “why?” is the more inclined you are to stay determined on the path to success.
2. Set Realistic Goals
Reaching long-term business success is a large feat and won’t happen overnight. It’s best that you set small, achievable goals for yourself to get to the larger vision. Each time you make an accomplishment, you get closer to the bigger picture.
3. Create Sustainable Systems
One part of a business that can be daunting is performing repetitive tasks over and over. But a lot of what people view as success comes from doing the smaller things consistently.
The best way to make sure you’re keeping up with this is to make your business a well-oiled machine by creating systems. Systems help your business run smoothly whether you’re around or not. If you can create a sustainable system, you can typically learn how to make a business last.
4. Manage Cash Flow Properly
Many small businesses tend to fail because they don’t manage cash flow well enough. If you don’t have enough revenue coming in consistently to sustain and reinvest in the business then it’s likely it won’t survive.
Use the right financial resources and tools to make sure your business sees positive cash flow. Work with financial experts to track things like income reporting, filing taxes, payroll, etc.
5. Learn Effective Marketing
Businesses need customers to stay in operation. However, if people aren’t aware of you then they won’t be able to buy your products or services. You can reach success by investing some time (and money if the budget allows) in learning how to market your business properly.
6. Build a Team
Once your business starts to grow and scale, it’s time to outsource the tasks that you can no longer do. Start building a solid team or hire professionals to help manage and run the business. Avoid trying to wear too many hats, as this can lead to burnout and business failure.
7. Treat People Well
Companies that experience high turnover rates often lose a lot of time and money. You can avoid the foundation of your internal business operations (loyal employees) by being fair, kind, and implementing great leadership.
Achieve Small Business Longevity With These Tips
It’s not impossible to accomplish small business longevity when you know why you’re in business and put the proper systems in place to sustain it. The most important part is that you remain consistent and determined.
Follow these simple tips for creating a business that has long-term success. If you’re looking for accounting solutions for your company, contact Palmetto Payroll Solutions to learn how we can help you.