According to the U.S. Bureau of Labor Statistics, approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more. These statistics haven’t changed much over time, and have been fairly consistent since the 1990s.
With the correct planning, businesses have a much better chance of succeeding. At the business mission, we are huge advocates for planning, and it proves with planning your business will succeed. As the saying goes, “fail to plan, plan to fail”.
Here are 3 tips should you implement from day one, which may improve your chances of business success!
Number 1 – You need money to start a business.
First and foremost, you need money to start a business. If someone tells you else wise, you will be in for a big surprise and a VERY challenging journey ahead!
Trademarking alone is approximately £500 in the US and UK approximately £400, and this doesn’t include fees for IP advisor fees. Then there are copyright fees involved fee possibly. You miss IP your information, and it may run your business with infringement fines before you have even started.
Then there is the website, the domain, the email address, and the business insurance. There are legal contracts which need to be in place when dealing with suppliers and such. This costs money.
Then there is the business plan, the marketing strategy, and all other strategies. And a kiddie for global downfall issues like COVID to ensure the business can sail through.
Thinking you can start a business with no money is a recipe for a disaster and financially collapsed business long term along with an immensely stressful journey.
Did you know that 98% of businesses collapse by year three because of a lack of structure in a business and have run out of funds?
Someone who thinks they can set up a business for no money has a very short term mentally when comes to starting a business and definitely does not understand the importance of implementing crucial assets from day one to imbed value, worth, and profitability to a business model long term.
Trying to stretch your finances at the beginning may mean your business never gets off the ground, and you’ll still have a lot of cash to repay.
If you are realistic at the beginning, plan to start with enough money, which gets you to the point where your business is up and running and cash, is actually flowing in.
Number 2 – Business Plan
Here at the business missions, we are unable to emphasize the importance of business planning. A solid and realistic business plan is the basic foundation of any successful business. The plan outline achievable goals for the business, how the business meets those goals, and possible problems and solutions. The plan figures out the costs and inputs needed for the business, and it outlines strategies and timelines which should be implemented and met.
Once the plan is complete, you must follow it. If you start doubling your spending or changing your strategies, you are asking for failure. Unless the business plan is overwhelmingly inaccurate, stick with it. If it is inaccurate, it is best to find out what is wrong with it, fix it, and follow a new plan rather than change how you do business based on quick observations. The more mistakes you make, the more expensive your business will become and the greater the chance of failure.
Number 3 – Consistency and Strategies
Once the business plan is done, all other strategies need to be in place such as marketing strategy, brand strategy, social media strategies, etc.
Furthermore, you need to execute all that is in the strategies now! Never become complacent. Monitor the market and know when you may need to alter your business plan. Being on top of key trends allows the business to adjust its strategy, so the business is able to continue to become successful.
Though the rate of business failure within three years is 98%, it doesn’t mean your business has to fail. Through good planning from the onset, and flexibility, many of the pitfalls of a new business may be completely avoided, and your business may flourish into a long-term successful and profitable business.