Starting a new business is a daunting task. Various studies have cited a failure rate of 50 percent for new businesses in the first year. With so much to do and such a high risk factor, prospective business owners need to do their research before taking the step of launching their enterprise. PADGETT BUSINESS SERVICES® is focused on helping small businesses succeed, so we have compiled some helpful tips for those considering small business ownership.
Play To Your Strengths
Focus on what you do best and use other resources to cover areas you are lacking in. If you are strong in marketing your business, but lacking in finances, do not try to do both marketing and finances for your business. You will not be able to put your best efforts into marketing and your finances will suffer as well.
Concentrate your efforts on marketing and outsource your finances, either by hiring an employee devoted to that piece of your business, or by hiring a professional service, such as PADGETT®’s proven small business financial services.
This piece of advice applies not only to your role in the business, but also to the business itself. Focus on what your business does best and stick with it. Trying to branch out to new services or products will pull resources away from what you do best and cause both the original and the new product or service to fail.
Instead, find out what product or service you can offer that will fill a demand or solve a problem, and focus on attracting customers who need what you are offering.
Have a Marketing Plan
You may have the best product or service out there, but if no one knows what you are offering and why they should choose your business over your competitors, there is no way for your business to be profitable. Marketing plans can sound intimidating, but it is simply documentation of your goals for make your customers aware of your product or service and the exact steps you are going to take to achieve those goals.
Spend Your Money Carefully
In order for your business to become successful, your funds need to go to creating profits or decreasing costs. Carefully consider what your purchases will get you before committing. For example, while you may have plans that require the biggest and best graphics program a year down the line, for now the middle-range product will do just fine. Keep in mind that technology is constantly changing, so it is probably best to save the money on the graphics package for now. Even if you bought the top of the line program now, in a year you would be spending money to update it.
There are many resources out there for small business owners. PADGETT BUSINESS SERVICES® has offered small business advice and consultation, tax preparation, government compliance, financial reporting, complete payroll solutions, and other services important to small businesses since 1966.