What are the major survival strategies for small business?
How can someone protect his business from failing?
Want to find answer to the above? Read on...
Research shows that 3/4 of new businesses fail within their first five years... In this article, I will be sharing tips on how to prevent your business from failing. Follow these proven steps:
7 Proven Ways To Prevent your Business from Failing
1. Prepare for failure
“Prepare for bad times and you will only know good times.” – Robert Kiyosaki
If your business will not go into extinction in the next few years, it starts with you. You must be ready to fail, but do everything within your reach to avoid failure. If you don't prepare for failure and it eventually comes, the business is likely to collapse. One of the common reasons why entrepreneurs fail is because they're afraid of failure and that prevents them from trying new innovations, introducing new products, implementing new business model.
When you are afraid of failing, that will hinder you from doing so many things, you will become over cautious and being over cautious will make you fail woefully at the end of the day.
Successful Entrepreneurs don’t fear failure; they thrive before it.
2. Be careful of the decisions you make
You as an entrepreneur, you are the pilot of your business; you are sitting on the driver's seat of the business. The survival of the business depends on the decisions you make today.
Don't be too quick in making decisions when you don't know the possible outcomes attached to it. Seek advise from people who are knowledgeable than you.
3. Monitor and Control your cash flow
Money is the life blood of a business, always monitor the cash flow and work hand-in-hand with the people who are in charge of the business's account to keep your firm running effectively.
Make sure there is proper management of cash flow. Devise a means for stimulating your debtors to pay as and when due.
4. Align your business with the latest trends
“In today’s rapidly changing world, the people who are not taking risk are the risk takers.” – Rich Dad
If your business will not fail, then you must always align your business with the ever-changing trend in the industry.
5. Increase your marketing efforts
For a Business to keep existing, much efforts must be made on marketing aspect.
“The aim of marketing is to know and understand the customer so well that the products or service fits him and sells itself.” – Peter F. Drucker
The business must always find a better way of satisfying the customers so that they won't be snatched by the competing firms.
6. Build good relationship with your employees
Your employees are integral part of the business, treat them as you want them to treat your business. Treat them fairly, give them a surprises (e.g by sending them message on their birthday), acknowledge their efforts, give them incentives... By doing all these, it will encourage them to strive for excellence.
7. Take care of your existing customers
“There is only one boss; the customer. And he can fire everybody in the company, from the chairman down, simply by spending his money somewhere else.” – Sam Walton
Customers are the reason why your business is still up and running, if they should abandon your business failure is inevitable.
To avoid such, treat them with care and watch them bring more people to patronize you.
“Courteous treatment will make a customer a walking advertisement.” – James Cash Penny
I believe if you can implement these survival strategies, you'll be able to prevent your business from failing. Always remember that the survival of your business depends on you. So be careful in your dealings.
