In the UK, 20% of new businesses go under within their first year of operation.
For a prospective businessperson, the main worry is not how to set up a business, but how to run it profitably to ensure longevity.
Granted, some reasons why a business might fail might not be in your control. However, some are.
What are some of the things you can do to increase your chances of success? Read on to find out.
Research. Research. Research
Starting a business without doing adequate research is setting yourself up for failure.
Before opening your doors, find out as much as you can about the industry you want to venture into. Start by finding out who your ideal customer is and who you are competing with.
This might unearth some kinks in your chosen line of business. Of course, this does not necessarily mean that you should not carry on.
Unearthing challenges can help you find solutions and pre-empt obstacles before committing yourself and your money to an enterprise.
Read up on entrepreneurship as well in order to improve your business management skills.
Work out all Regulatory Requirements
Regulatory requirements include taxation, licensing, labour issues, and so on. These will contribute to your success on several fronts.
The first one is peace of mind. When you begin a business on the right footing, you are only left to focus on running the business and onboarding more customers.
Another benefit is that you avoid the costs of non-compliance. Each authority has penalties and fines that are meted down to those that fail to comply. If caught up in such situations, the payable fines can potentially destabilize your business.
Finances aside, non-compliance paints you as an irresponsible business. Customers tend to shun such entities.
Create an Online Presence
The internet remains to be the most cost-effective way to market a brand.
If you are looking to grow, ensure to incorporate digital marketing into your marketing mix.
Start with a website. With the emergence of customizable website templates, a website is easy to acquire nowadays.
The goal is to create an aesthetically pleasing site that is easy to navigate across different internet-enabled devices.
You can also have a blog on your website. Use your blog to provide solutions, explain better ways to use your products as well as speak on your industry.
Create social media business accounts as well and link them back to your website. Also, make your information shareable so that your audience can share the same with their peers.
41% of UK consumers prefer live chat and online support as their preferred communication channel when communicating with businesses. Consider leveraging this as well.
Focus on Your Customer Experience
The customer is king.
Customer experience speaks of the impression your customers are left with after an interaction with your business.
If you had to think about this, you could probably come up with both excellent and poor experiences you have had from different businesses. The same happens to your customers.
Research has shown that customers are more loyal and are willing to pay more to a business that provides a great and memorable experience.
In this regard, it’s essential to keep thinking about the ‘wow’ factor and how to implement strategies that cement your relationship with your customers.
Aside from implementing positive customer experience strategies, ensure to measure their success periodically, and make amendments as needed be.
One Last Thing
Most successful entrepreneurs almost always single out flexibility as a much-needed trait in business.
Customers, technologies, competitors, and economic environments rarely remain the same. Neither can you.
This calls for a high level of flexibility and willingness to change course as often as the business environment dictates.