4 Things you can do to help your small business flourish in 2018
Statistics show that many – in fact most – small businesses don’t survive the first five years. Competition in most niches is very dense, and that can make survival a challenge. Fortunately, there are things you can do to help your small business go the distance.
Gather your capital
The more working capital you can muster, the better. Apply for a business credit card or line of credit to cover any unexpected expenses. One of the major reasons so many small businesses fail so quickly is that they run out of money. Ensure this doesn’t happen to you by giving yourself a cushion to fall back on when unexpected expenses arise
Keep a close eye on your finances
When you start a business, there are so many balls to keep in the air all at once, it’s easy for things to fall through the cracks. Don’t let your finances be one of those things. It’s not enough to keep an eye on how much revenue you are bringing in; that’s not a complete picture of your financial situation. Instead, keep an eye on a few other bits of information, such as your profitability (that is, what percentage of each dollar you bring in is actually profit, once expenses are considered), your return on investment and how much you need to make to actually cover your operating costs. All these factors together will give you a much more complete picture of where you stand, and you can use that data to make any necessary adjustments to where your money is going and where it’s coming from so you can increase your profitability and, by extension, your stamina in the marketplace.
Surround yourself with the right people – and take good care of them
Some business owners focus on the customer. Although it is certainly important to have a great customer service ethos, it’s even more important to surround yourself with the right people and to look after your team. You aren’t likely going to have all the necessary skills and aptitudes you’ll need to successfully manage every aspect of your business. That’s why it’s so important to hire the right people to bridge the gap between your personal talents, experience and knowledge and the things you don’t know. Once you have the right team around you, it’s important to take care of them. The more valued and appreciated they feel, they more they feel their voices have been heard, the better they will perform for you and the more successful your small business is likely to be. Value their opinions, ask for their input, reward them for a job well done, and maximize their skills to their best advantage.
Choose your opportunities wisely
Remember: Just because opportunity knocks on your door, doesn’t mean you have to answer it. Not all opportunities, no matter how attractive, are going to be the best thing for your business. Expansion is good, but it’s important to consider whether your small business can sustain the expansion without spreading yourself too thin. Be sure that any new opportunities you take on are in line with your overall vision for your business in the long time, rather than just a spur-of-the-moment quick fix. Growth is important, but not if what you do today costs you your longevity over time.