The vast majority of businesses have a failure rate of 33 to 69% depending where they are located, this however should not discourage you from starting your own business.
It is also important to note going out of business is not a bad thing because you can come across better opportunities related to the business you open. An important aspect about opening your own business is knowing there is a growing demand for what you are going to offer and being honest enough in your assessment about being able to offer it.
Most people open a business because they have extra money and they think they are pretty good at what they do. This however is not a formula for a good business. You have to research your competition, location, demand, expected growth, market, profits, loses, expenses, insurance, labor laws and of course taxes and this is a short list. There is a lot of information out there so you have to identify what is important to your business and go more in depth to gain a full understanding of how it will affect you.
Unless you are a non-profit you are going into business to make money. When you open your business you have to have contingency controls in place just in case your plan to make money does not materialize, which is sadly the case for most new businesses. Before your grand opening make plans to generate money right away, create a base for recurring revenue and don’t spend more than you make.
Know The Climate
You can open a business during any economic climate as long as you are meeting a demand. The business you open can thrive even if economic conditions are not ideal. Just as in good economic climates you have to finance your business properly and have a great business plan. The climate does not guarantee success but your planning will give you better odds.
Know Your Customers
Without customers your business will not exist so you have to place great importance on customer service with clients and business partners. Customers and business partners are a great source of business referral. Have a customer service policy in place so the all the staff understands great customer service is part of your normal business operation. Studies show good customer service is a big reason people become repeat customers and recommend a business.
It goes without saying you have to integrate technology if you want to increase your chances of success. Learn how to use accounting software to help you track inventory, billing, payroll and other business operations. If you are not technologically savvy do not hesitate to hire someone who will make your business be more productive operationally and online. It takes know-how and time to build traffic to your website, blogs and social media sites. These are tools you have to incorporate as part of your marketing to attract more customers.
Thousands of business open up and close each year. If you want to avoid being one of the ones that close learn as much as you can before you start your own business and continue learning while you are open.