All small businesses encounter rough times and growing pains. But not all businesses survive the struggles. In fact, eight out of 10 new businesses fail.
So, how do you ensure that your business is among the two in ten that survive?
Check out these tips for keeping your venture going strong.
Invest in Insurance
According to the piece “4 Ways to Assure your Business Doesn’t Fold Under Pressure,” all business owners should verify that they’re properly insured. You can’t possibly predict what may go wrong with the venture.
A disgruntled employee could sue the business. An unhappy customer could also take legal action. Prepare for these and other unforeseen troubles by investing in insurance.
The exact forms of insurance that you should purchase depend on your business, industry and other factors.
Manage your Debt
Starting a business can be expensive. Unfortunately, business debt can far outweigh revenue during a business’s first few years and this is one factor that often causes new business owners to shut down their ventures.
Avoid this situation by managing your debt from the outset. Develop a solid idea of how much revenue you can expect during the company’s first few years and borrow funds wisely based on that sales forecast.
A smart way to guide your business toward future success is to start forecasting. This tactic involves tracking year-over-year sales data and forecasting week by week sales based on that data and other factors.
Encourage your employees to take ownership of the forecasting process and, if possible, have each department create individual forecasts that are combined into a company-wide forecast.
This data, including whether the previous week’s forecast was met, should then be shared at weekly company meetings.
Backup Your Data
How secure is your company’s information infrastructure? Wipe out the vulnerabilities by investing in solid backup programming and by making other IT changes. Lost data doesn’t just cause frustrations; it costs the company money, time and more.
The backup programming you choose should be based on your data load, industry and other factors.
Don’t Give Up
Owning a business means you’ll encounter a range surprises and problems daily, many of which you could have never predicted.
No matter what you encounter, don’t give up. When a problem arises, address it and, when you’re able, pause and take the time needed to work through it. But don’t ever let the option of quitting enter your mind.
Ask for Help
Not sure how to resolve your business’s increasing troubles? Don’t try to solve them behind closed doors. Rather, ask for help from your employees, mentors, a business coach and more.
By bringing the troubles into the open, you invite others to help you solve them. Also, don’t wait until the company is under immense pressure to ask for help. Involving others in the change process early is essential for keeping the venture afloat.
Don’t let your business be the next failed venture.
Be proactive rather than reactive by investing in insurance, managing your debt, backing up your data and more.
These and other steps can help your business to not just survive, but thrive.
About the Author: Shayla Ebsen is a freelance writer and editor with more than 10 years of professional writing experience both in the corporate and freelance settings.
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