Small business is a promising step into success you set as goal. Starting a business sounds easy. In fact, it is possible for anyone to start their own business. However, building it into something bigger and sustainable in the long term is what more challenging about running a small business. According to the statistics, around 20% of small businesses fail within their first year. It is actually a good thing because it means the majority of small business can make it past the ever challenging first year. However, it is still such a huge percentage. How can you know if you are one included into that 20%?
Signs of failures of your small business
Business is said to be a game of number and logical thinking. What you decide determines the future of your business. However, it is not as simple as it sounds as well because there are many factors affecting the risks and consequences as well as reward. It makes decision-making process even harder. Are there any signs to know if your business is destined to fail?
Before you go further…
As mentioned earlier that what you decide can determine your business. It means you cannot actually predict the future of your business but what you do can affect it. It is not you that can determine the success of your business but more of what you do. Therefore, the process of making decision is really essential in running a small business.
The ethic and competence of your workers
One of the signs of failures can be seen through the people you hire. If you hire incompetent people with poor work ethic, the chance of your business to thrive is getting lower. This is actually an avoidable mistake. When you are more willing to hire amazing people, the bright future is more visible and reachable. You can avoid it by hiring the real talents from the start even if they are way smarter than you or more skillful in what they do they you are. Consider testing their basic skills, evaluating their emotional intelligence, as well as their amazing past work.
Poor marketing plan
Poor marketing plan is also one of the signs of failures you can notice of your small business. If you keep implementing poor marketing, you lack solid ground for your business to survive. Keep in mind that marketing plan is essential in running a business regardless the size. In small business though, it is the key factors to thrive. Make sure that you have solid marketing plan that has clear picture of your future customers, the kind of approaches you are going to apply, and how to make it work in the long run.
Poor communication and team management are clear signs of failure a business can show. If your business is lack of effective communication and solid tea, management, the more troubles to come. A You need to implement transparency in communication. Also, building a solid team is essential so that everything can be managed well. Good communication and solid teamwork are great recipe to build successful business.