At least 75 percent of businesses fail within the first three years, and one-third of these fall within the first six months. The following things will help you reduce the chances of your business failing before maturity.
The form of your business is an important factor for it determines various factors such as tax payment, and personal financial and legal responsibility to have in the business. Being a sole trader gives the advantage to take home all the net profits but increases the liability for all business dealings. Ensure you know all the pros and cons of the type of business you want to establish, and compare with alternatives
Ensure you have full knowledge of who will be the main rivals and how best they do business. Studying other people’s businesses enables learn from their mistakes, and become a better alternative for the clients. You can also learn their strengths and come out with strategies on how best you can beat them. In some cases there will be a big player who acts as a quantity or price leader; in this case, you should mainly focus on what they do not provide customers.
Make sure your service appeals to the target market, this is only possible if you focus on the target audience and style all things right from your business website to marketing campaigns that surround them. Make sure your message is targeted at the right audience by sending questionnaires, holding focus groups, and speaking to customers through the social media. The best way to provide the right service to people is through getting views on what they need and giving it to them.
Figure out ways to which you will pay yourself, and this should be thought from the upfront. The main motive for the formation of business is generating profits, thus make sure you have strategies that make the business means to you. Despite the fact that business is doing well at the start, ensure you save the money for a possible emergency, the money should be used for luxuries and no meaningful spending.
As much as the name of business sound too easy and obvious, this is not the case for any plans to change business may have severe consequences for the business. The name chosen should work easily with available web domain, since this is one of the first things a prospective customer will see.