Avoid these small business killers
It goes without saying if you want to go into business to get rich, that’s a poor reason to try. And, no one can question the negative effects of having insufficient capital as a small business killer. If you’re starting alone, poor management skills won’t matter. Because you’ll have no one to manage. But, there are things you should be on the lookout for when you plan to go into business. Aside from the obvious, three primary reasons many new small businesses fail.
1. A lack of planning
When you arrange to attend an event, you plan what you will wear. when you interview for a job you plan what you’ll say. If you plan to take a trip you plan what you’ll take with you. Most people plan every major thing they do, yet those that decide to open a business, fail to plan. A business plan is critical to your success, and, can give you a four (4) to five (5) times greater possibility of succeeding than a person without one. As long as your business is realistic, periodically updated, and is based on sufficient research. Without such a business plan, it will be difficult to know the order of the implementation of critical start-up issues. It will be difficult to know at what points you may need to borrow money and how it should be used. You may not understand which bench marks need to be met prior to adding employees. Or when you might logically seek to expand your operation.
Many new business people underestimate the importance of location. It is a one time strategic decision that is difficult to change. You don’t necessarily have to start with a physical location. But, if you use the Internet as your location, you may take a while to get your first sale with a website. And, a bad location can cause even the best planned and financed businesses to fail. The Saafenet strategy suggest a good location to start may be where you live. If, you can perform services or sell products at your customers location. A great example of that would be the house parties Avon sales people have or accounting services offered at a client’s office by accountants. Persons offering landscaping and cleaning services work at their customer’s location as well. Renting or buying commercial spaceto early, even in a good location is always expensive and has forced more than one business to close.
3. No website or social media presence
No matter what type of business you decide to open, you must have a website and a social media presence. Today, almost as many people have computers as have TVs. In fact the U.S. Census Bureau reports as many as 85% of all households in the United States have either a computer, tablet or a cell phone allowing them access to the Internet. And, that is where your website and social media would exist. In the past many companies used brochure websites spelling out their operating hours and basic information about the company. Now, the better companies have moved to e-commerce and allow customers to buy their offerings right at their websites. Social media is great for getting your company name out there and branding your offerings. But you can sell your products as well directly on social media. Failing to have either can cost you sales.
Understand the solution
Going into business for the wrong reasons, with insufficient funding, or poor management skills are issues that can be overcome. But, failing to address the primary small business killers as cited above, can’t be overcome very easily. The Saafenet Corporation shows you how to have a location, supported by a website and social media, so you can perform services at your client’s location. Then when you’re ready, and if it becomes necessary, how to plan and save to move to commercial space. We provide you with guidance on developing a realistic business plan designed by you, for you. We show you how to avoid the three primary small business killers. And, when you get one of our foundation building packages, you don’t pay another dime to learn the right way to to get started.