It is an irrefutable fact of life that most businesses will suffer losses and setbacks at some point. Small startups are particularly prone to financial obstacles. However, a few bumps along the road do not signal defeat. Here are four helpful suggestions to keep in mind as you continue on your journey to becoming a successful entrepreneur.
1. Open Your Mind to Change
Many companies have sunk because they failed to adapt. From Blackberry and Sears to Blockbuster. You must be willing to make adjustments based on data analytics, current and growing trends, projections and customer feedback to succeed. You need to evolve to meet constantly shifting demands.
Out of all the businesses that flop, 42% do so because there is no market for what they offer. Diversify and incorporate new ideas and innovations to cater to the crowd you want to attract. For example, are you the owner of a tea shop in a college town who has noticed younger generations make up a small percentage of your clientele? Then expand your stock to coffee and other drinks that appeal to them. You can also renovate to create a more contemporary atmosphere that attracts a younger crowd.
Another effective tactic is to perform a regular SWOT analysis to evaluate your company and make modifications based on the results. SWOT stands for Strengths, Weaknesses, Opportunities and Threats, the four aspects of your business you assess.
2. Manage Your Cash Flow Better
Cash flow is the movement of funds in and out of your enterprise. Surveys indicate that 82% of businesses crash because individuals either don’t understand or can’t manage it correctly. Carefully watching your cash flow helps you identify any existing issues and spot emerging ones before they become a serious problem.
Another strategy to help manage your cash flow is to incorporate an organized and reliable payroll system. Doing so ensures compliance, saves time, minimizes errors and even boosts overall morale because employees are more likely to receive the correct wages at the right time. If you choose to update your payroll setup, look for a platform that offers a host of perks like the ability to run reports, automate tax filing and calculations, free direct deposit, payroll scheduling and even mobile payroll options to make it easy to monitor payroll when you’re on the go.
3. Set Goals
Creating goals breaks down seemingly huge challenges into doable steps. One method many business owners use is the S.M.A.R.T. (Specific, Measurable, Achievable, Relevant and Timely) technique. This involves specifying what you want to accomplish, deciding how to measure your level of achievement (the results), determining if you have the resources and time to reasonably reach your goals, ensuring your aims align with your business objectives and setting deadlines.
4. Optimize Your Marketing Strategy
Marketing is vital to any business. The advance of digital technology has made it possible to reach more people than ever before, providing a variety of tools to grow brand awareness and gain exposure. Use social media sites, blogs and networking to grow your customer and client base.
It can be hard to move past financial hurdles that obstruct your path, but it’s not impossible. By adapting, practicing good cash flow management and employing goal-setting and marketing strategies, you can overcome financial lows and draw closer to fulfilling your entrepreneurial dreams.
Capital Q Ventures is dedicated to small businesses, investors and communities. Connect with us today to see how you can level up your growing business.