According to financial solutions company Fundera, 20% of small businesses fail in the first year, while 50% last until their fifth year. This statistic might make new entrepreneurs nervous and wary of starting a business. That’s perfectly normal.
Launching a new business is always a considerable risk. However, the statistic also shows that there are businesses that do survive. Despite the number of failed endeavors, several small companies thrived. So what makes them different?
While there’s no such thing as a one-size-fits-all solution to success, some businesses have specific qualities that helped them overcome the odds. This article will discuss some of the positive characteristics found in successful businesses that are worth emulating.
Has A Clear Vision
Successful companies are not just a result of having a good idea. Success also favors those with a clear vision of where they want to go. Having a clear vision from the start helps give your company direction and a long-term goal to work towards.
For successful entrepreneurs, simply earning a profit isn’t enough. That’s to be expected in any business. A competent construction product entrepreneur, for example, will have a vision that they’ll be the city’s leading supplier of high-quality building materials in five years.
Having a clear vision will also help you craft an effective business plan and set measurable short-term goals that eventually lead to the fulfillment of the vision.
Understands Their Customers
In our hyper-connected world, it’s more important than ever to get to know your customers. Understanding your customers should be the core of every business. Knowing what they want and how they want it is a significant advantage to any company. It’ll help you tailor your products to suit their needs and craft better marketing strategies.
Fortunately, the rise of social media makes it easy to connect with customers and get their thoughts on how your products are serving them. Encourage customers to leave reviews, interact with them regularly, and do creative promotions that strengthen brand loyalty.
Running a business means dealing with constant changes in customer behavior, evolving technology, and other surprises. Is there a new kind of technology that might make your business processes more efficient? Learn and embrace it. Does your competition have a unique and successful product? Study it and invest in creating a better alternative.
Just because the old ways still work doesn’t mean you should only stick to it. Constantly check your customer’s needs, and if they change, your company should, too. Never be afraid to change your company’s products and pricing, especially if it satisfies the current demand.
Good companies know how to adapt to change, and great companies prepare for it. Sometimes, unexpected situations arise when managing a company. Surprises like accidents, lawsuits, and cyberattacks can happen anytime. If you are not prepared, your business can be at risk.
Consider investing in business insurance that can help financially protect your business, assets, and employees against situations like natural disasters and litigation. It’s also a good idea to have a legal team for your budding company.
Many small business owners consider lawyers as professionals reserved for large companies. You could be simply a small candy shop in Grande Prairie and still benefit from having corporate lawyers. Having even a small legal team from the start will help make sure your business is operating in accordance with laws and regulations.
Some other characteristics and habits make up a successful business, and there are more that you’ll eventually run into during your journey as an entrepreneur. But the ones mentioned in this article are excellent traits you can start integrating into your business’s core values and operational principles.