A study conducted by the SBA (small business administration) shows that in every three new small business one of them will fail after two years. The same study further went on to point out that 58 percent of small businesses fail after their first five years. Regardless of these odds, you can succeed in your business.
In this article, we are going to be looking at some ways you can keep your business alive.
Manage your cash flow
One of the major reasons why a lot of business struggle is because they don’t know how to strategically manage their cash flow. In order for you to maintain your cash flow, you have to constantly maintain the balance between the cash you are getting and the expenses you are making. During the early days of your business, your goal should be to bring as much revenue as you possibly can while reducing your expenses.
Make a strong business plan
If you fail to plan, indirectly, you are planning to fail. A strong business plan is a must if you really want to succeed. To make a strong business plan, you have to spend the time to make deep research with regards to the trends in your industry. In the end, your business plan should be able to show a clear path through which your business is going to get its revenue.
Many business owners have described debt to be an anchor, in that it prevents them from growing to new heights. Credit cards and other forms of debt can be likened to a double edge sword. Avoid borrowing, but if you really need to borrow, then ask for something that you can easily pay back.
Make clear projections
When starting up a business you have to be optimistic, but you also have to be realistic. Many entrepreneurs today have the feeling that their ideas can change the world. Of course, having a mindset like this is great. But you have to be on the lookout so that you don’t let your optimism push you toward making very poor decisions and projection.
Starting a small business can be very demanding, obviously because you are on a new terrain and you cannot really know for sure what the future holds. But if you apply the tips in this article you will have a better chance of succeeding in your business.