If you have the resilience to push forward, you will eventually overcome the problems. A creative mind and ceaseless willpower can take you to the peak of your career.
The chances of a small business ending up in failure are a bit too high if you don’t have adequate knowledge.
Do you know that 90% of startups end up in failure? Is it because they all didn’t have enough know-how?
Some fail because the industrial sharks are way too powerful to compete. Others don’t have enough resources. But most of all, it is luck that doesn’t play in their favor. However, don’t leap out of the scenario based on this figure.
You may end up in the luckiest 10% with the right strategies and ample knowledge.
Check out the best practices our team rounded up for the success of small businesses:
- Focus on Customer Service
A small business must perform to a standard that the customers can appreciate. In our increasingly competitive global economy, excellent customer service can make or break the business. A survey conducted by American Express discovered that two out of three customers claim they are willing to spend more with companies where they experience positive service interactions.
Examine your existing customer service policies and make the changes required to enhance your product/service than the competing entities. Some strategies to improve your reputation with the customers include:
- Treat every customer with the same service level
- Pay close attention to customer feedback
- Hire employees with excellent people skills
- Don’t make false promises
- Understand the value of customer retention
While working on this domain of your venture, you may need to spend on staff training, revamping the return policies, and make fundamental improvements like updating technologies.
- Work on word-of-mouth
Even though tested marketing tactics like email campaigns and digital adverts play a colossal role in increasing awareness, there is always one factor that stands out – how your customers talk about you.
A 2015 Nielsen Report shed light on this fact. As per the report, 90% of the consumers are more likely to trust a brand recommended by friends. Small business owners must capitalize on opportunities coming their way that allow them to engage with the community.
Forever 21 is a brand teaching us how to do it the right way. It encourages buyers to share their style by uploading their favorite outfit pictures on Instagram. Organic sharing like this is an excellent way to boost your word-of-mouth.
Some methods to generate such buzz are:
- Provide superior, professional service
- Build and monitor your online reputation
- Gain publicity by backing up a vulnerable segment or entire population
- Sponsor local organizations or charities
Remember, you aim to give customers a reason to share your brand with others. Strategies may vary, but the primary motto stays the same.
- Build your online presence
Online presence is essential for outbound marketing because it reinforces your brand and what you offer. Once you have communicated with your audience, you need a web presence to portray why your product or service is excellent.
As per Google, 97% of the consumers use the web to search for local businesses. This and some other mind-boggling marketing stats have convinced majority of companies to plunge into the digital landscape.
Hence, here are the first three things you should focus on when building your online marketing measures:
- Your website – A website is relatively easy to set up through apps like WordPress. You can add an online shop, provide contact details, and integrate reviews provided by current consumers.
- Search Engine Optimization (SEO) – Make sure that your website is discoverable by the search engines. The Beginner’s Guide to SEO by Moz and Search Engine Optimization Starter Guide by Google can be your best friends in this endeavor.
- Social Media – Posting compelling and engaging content on the relevant social channels is one of the proven ways to attract target customers. It allows potential customers to peek into your business, compare it with others, and make a choice.
Having a digital marketing agency up your sleeve can expand your chances to generate a broad fan base. Apart from optimizing your online venues, a digital marketing agency will also enable the business to acquire content marketing skills.
- Keep Tight Control of the Finances
Business costs for office space to transport seem to be on the rise. Keeping a strict tab on the finances will allow small business entrepreneurs to be vigilant when making their next decision. You don’t have to launch with tons of debt around your neck.
Nonetheless, managing finances is a hectic task and may eat up a lot of your time. Thankfully, we have several digital solutions to pull us out of this misery. There are several mobile apps for tracking expenses or you can check out a few online accounting software for small businesses.
Simultaneously, you must deliver this concern of the company to the workforce. Consider conducting annual or bi-monthly reviews of significant expenses such as vehicle expenditure, workplace rents, and business insurance. A thorough evaluation of your financial state will enable you to make decisions such as investing into virtual assets, etc.
According to a U.S. Bank study, a whopping 82% of businesses that failed cited cash flow problems as a massive factor of their failure. To keep yourself out of this number, review your major supply costs regularly. At the same time, you should always look for ways to pool supplies with other companies.
- Update your business plan
A business plan is essential to test the viability of a business idea and securing the debts. The key to establish a successful business is focusing on constant modifications in your business plan. You can decide on new goals and construct new directions.
You can figure out strategies needed to introduce for improved marketing and customer relationships. An updated plan helps a company make itself more profitable. With innovative methods and tech tools, they can reduce losses, increase sales, and cut expenses.
A business must update its plan at least once every year. While you are doing so, make sure you take a fresh look and work on the following:
- Talk to your customers and prospects – What problems are they facing and how they expect you to resolve them?
- Try to come up with a new market segmentation – Think if there is any other consumer base who could benefit from your venture.
Also, make sure you get a monthly review of the difference between planned results and outcomes of your sales, revenue, profits, cash, and balance. Keep in mind that blindly following a plan can kill a company as they stubbornly insist on following a plan that is not relevant anymore.
Verdict – Never Give Up!
There is one trait that distinguishes failed companies from successful ones. That is, relentlessness!
If you start a business, you should prep yourself for the obstacles and a pile of challenges. If you have gotten far enough to take a leap of starting a business on an idea that you believe in, you have the prowess to make it successful. So, on days you feel like giving up and I tell you here that there will be such days:
Don’t give up!
If you have the resilience to push forward, you will eventually overcome the problems. A creative mind and ceaseless willpower can take you to the peak of your career. So, are you ready to test yourself? Let us know how you plan to kickstart your small venture!