The number of businesses that file for bankruptcy during their first year of operation is something that can't be ignored.
According to statistics, almost 25% of businesses are likely to fail and shut down in their first year. As a business owner, you must be wondering how you can ensure that the business you're launching can survive at least for a year?
If you want your business to have the greatest chance of success, you will need these three things:
1. A huge amount of available cash that will get you through the hard times after you get the business started. Business experts always say that business owners need to have access to credit or cash reserves that are triple the amount of money they assume they will need. This will give them more breathing room in terms of their finances.
2. To increase your chances of succeeding in your business venture , you want to keep your capital investments to the lowest amount until the time comes that your business is profitable already. Doing this will free up some cash for you, and your operations can be prolonged even when sales are not as good as you expected.
3. If you have a marketing plan and strategy, your business will have a higher chance of success, and you will be in a better position to attract new clients and retain existing ones. So if you haven't drafted a marketing plan yet, it's time that start making one!
As you look into your biggest expenses , try to know if there are alternatives you can use to reduce your expenses or capital investments. For example, you can go for a free accounting software program when you start your business instead of investing in some popular and expensive programs.
When your revenue is too small or almost none, a low-cost marketing plan that can help widen your consumer base will be very useful. It's vital also that your plan includes your general marketing strategy, along with a couple of more specific tactics in relation to how you will promote your products or services, what your actual products or services will be, and how they will be distributed in the market.
As you write your marketing plan, always bear in mind that your goal is to keep your expenses low. Consider using less expensive marketing tools, such as social media! You can use Facebook, Twitter, Instagram, YouTube, Google+, and other tools that will allow you to market your business at a minimum cost. You may seek the advice of a seasoned business coach if you want to learn about the other means by which you can establish your products or services in the market.