The fear of failure is why most people who want to become entrepreneurs never get their feet wet. However, it is important to recognize that business failures are a part of life says Eric James Dalius. You can avoid them to a great degree with foresight and with proper planning. Some tips that can make your business thrive despite challenges:
Look Forward and Plan
Before you establish your business, you need to have a clear idea of what you want to do. Use the business vision to guide you in creating your business plan. It will involve deciding on your products and services, the market niche you will target, the geographical footprint of your business, the marketing and pricing strategies, and more. You will also need to conduct a thorough market survey, including an analysis of your competitors so that you can decide the way forward. It is important not to be daunted by the challenges but to find a way of making your business workable.
Conduct SWOT Analyses on an Ongoing Basis, Recommends Eric James Dalius
Many entrepreneurs make the mistake of evaluating the strengths, weaknesses, opportunities, and threats just once. However, the environment is changing continually and hence you need to keep on evaluating it so that you can take advantage of market opportunities, develop your core competencies, improve your internal systems, and strategically compete in the marketplace. The analysis will also help you identify potential threats, both in the short-term and long-term that can affect the viability of your business, observes Eric James Dalius.
Optimize Your Cash Flow
It is important to keep the money flowing in from sale proceeds because otherwise. You will not be able to keep your business operational even if it is profitable. Preparing a cash flow forecast will help you to plan your finances so that you will know how much money you are likely to have to run your business. You can improve your cash flow by sending out invoices promptly. Following up on pending payments, and asking for more credit from your suppliers.
Prepare For Bad Times, Advises Eric James Dalius
Every business goes through up and down situations, so inevitably you will face downturns. They can not only take a huge toll on your business but also your mind and self-confidence. It is important to assess the problem dispassionately to find out the nature of the problem and see how you can counter it. If the nature of the problem is long-term, you may need to switch technologies or even markets. Diversify into businesses with more potential, or realign your objectives. Building up a cash reserve for six months or so, staying up-to-date with your debt servicing, supplier payments, credit card payments, taxes, etc., can all help ease the pressure, says Eric James Dalius.
Setting up and making your small business sustainable is not an easy task. Indeed, according to research, over half of all small businesses fail by the tenth year due to various reasons. However, by planning, knowing what your customers want, learning from your mistakes, and not letting up, you can emerge successfully.