According to statistics, almost half of the businesses in the world fail within their first 5 years of operation. This means that they shut down even before they hit important business milestones. Well, that is if they actually have set such milestones.
Business milestones are important for businesses to begin with. They are vital for measuring the actual performance of the business, and they can be used as a tool for determining which aspects of the business are working well, and which ones need attention and improvement.
What you're going to read below are some very important business milestones that are achievable and can help you stay on track.
1. Business Model
A business model is what will tell the story of how your business should work. Your business model should focus on who your client is, what your client values, and how you'll be able to deliver such value at the right price.
Creating a business model requires time and focus. It may also evolve over time, but still, you want to be able to start on the right foot with a good business model so you won't be fumbling around.
2. Anchor Client
Getting your first anchor client, or your repeat client, is your next important business milestone. Once you've landed this first client, you will have confidence in your business and a good reason to keep going. There are many ways to get your first repeat client - cold calling, an existing contact, or personal recommendations.
3. Realistic Marketing Strategy
Marketing is the foundation of your business. You can't just sit there and wait for clients to come to you. You need to do smart marketing if you want to have a consistent flow of clients and eventually, profit.
Many companies rely on professional marketing companies to take care of this aspect of their business. Although this is going to cost you a lot, it's a useful and necessary investment.
4. Employ and Train a Formidable Team
It's great to start as a one-man team, but as you go along and as your business grows, you will need help from other people. You want a good employee training program to ensure that the people who will run the business with you have a good understanding of how your business should be operated. Also, put effort into hiring the right people to avoid wasting time and money on employees who don't fit in.
5. Become an Authority in the Industry
Now that you have a great team and you're starting to make money, the next business milestone to reach is to be acknowledged as an authority in your field. You can do this by getting involved in the community and letting people know the value you are offering. You want even your peers to see that you are an expert in what you're doing.