According to Investopedia, 20% of all business fail within the first two years. Another 45% fail within the first 5 years and only 25% of businesses make it past 15 years or more. Therefore the question that lies to be answered is, as an up and coming business owner who is just getting started in the market, how can you improve the odds that your business will achieve and maintain success? Read on to learn more.
One of the most critical mistakes many startups make is that they falsely assume that their service or product will be popular, simply because people within their social circle like the idea of their product/service. However, many experts proclaim that you should never assume that there's a market for your idea. Instead, you need to research your idea and talk to people (outside of your social circle) about their feelings towards your product. Additionally, it's highly recommended that you contact a market research professional to get a good idea of value behind your product and service as well as information on who your target audience would be.
While some companies achieve success as a result of hype. You can't rely on the same concept. In today's world, you have to invest in digital marketing services if you want to compete with other companies in your sector, especially as a startup. Digital marketing services like SEO can help to generate organic traffic to your site. Meanwhile, a social media marketing expert can prove to be especially useful when it comes to creating brand awareness.
Many business owners make the mistake of working with unlicensed commercial contractors as a way to save money on the expenses that are associated with establishing a workplace environment. But by working with a commercial contractor who is certified and insured, it'll help to shield your business from personal injury lawsuits stemming from on-site injuries.
Most people who want to start a business often think about what they want to sell and the type of people they want to sell it to. Rarely do they ever consider how their business will operate. For example, if you plan to sell a physical item, how will you deliver it? 80% of consumers prefer companies that provide free shipping, will you offer free shipping or will you include the shipping expense in the listing price? Additionally, how would you respond to people whose shipments didn't arrive? The point being is that you need to determine the operational needs of your business.
Knowing your competitors is just as important as knowing if there's a market for your product. This entails researching the competition to determine what they provide and how they provide it. This is something that's need to be done continuously.