It is a well-known fact that if your small business can make it through the first three years, you have a good chance of being successful. For every successful business you see out there, there are many more that fail. So, wat is the key to a small businesses survival? Here we can just take a look at some of the more obvious reasons.
Location, location, location. Not just which street to locate a business but what city. Some people just don’t do their homework when it comes to things like taxes, hiring costs, and demographics. Locating a business in the wrong city could be a recipe for disaster. Do the research before you take the leap.
Will your product or service sell? Studies have shown that 42% of small businesses fail because there’s no market for their product or service. Does your business idea have a customer base who want that product, or service? If you’re going to risk your money on a business, make sure there’s a market for it.
Believe it or not, 14% of small businesses fail because they ignore their customers. Part of a successful business is good customer service. People are smart and they will soon figure out where they can get better service. Knowing your customers and their needs is an ongoing process.
If you have a business that only requires one person to run it, then maybe you’re ok with this one but for the rest of us this applies. Surround yourself with the right people. People don’t realize it but 23% of small businesses fail simply because they don’t have the right team. Finding the best employees is critical to your success. There are many resources online to help you develop a strategy to help you find the best employees.
Running a successful business takes much more than this, but it’s a good head start when you know some of the biggest reasons for failure ahead of time.