Why Do Some Businesses Fail While Others Succeed?

It is no secret that the majority of startups and new small businesses do not succeed in the long term. Only about a quarter of new businesses are still open after 15 years. Being a small business owner is not for the faint of heart. Owning your own business requires a great deal of time, effort, and creativity. If you want your business to be one of the businesses that is successful for years to come, it is important to take proactive steps toward this goal from the beginning.

Preparation is Key

We have all been reminded since we were young that failing to prepare is preparing to fail. This maxim has been proven time after time. Part of ensuring your business’s continued success is developing a strong business plan. A good business plan is detailed and realistic. Avoid falling victim to the trap of excessive optimism. Instead, make sure that your projected timeline and revenue predictions are realistic and based on well-researched facts.

Additionally, the importance of market research cannot be overstated, nor can the importance of understanding how current players in the market are operating. Carefully investigate companies that offer similar products or services as you plan to offer. Take note of how the companies market themselves. Do they utilize social media advertising? Is their website mobile-friendly? Do they use any traditional forms of advertising such as print advertisements? Conduct information about what potential customers would and would not like about your products and services through online surveys or informal discussions. You may even choose to purchase market research data from firms that specialize in market research.

Taking Note of Changes and Being Flexible

Despite all of your preparation, unexpected obstacles are bound to present themselves. What sets successful business owners apart from unsuccessful business owners is a willingness to adapt to changing conditions. If a product or service you thought would be a smashing success fails miserably, have the humility to admit that this idea is not working out and replace the product or service with a better-selling option. Pay careful attention to the feedback that you get from customers and use this information to reveal areas for improvement. If the last 15 months have taught us anything, it is that change is the only constant. Being a successful business owner requires flexibility and a willingness to grow and change.

We Can Help Because We Have Been There

Building a business that will stand the test of time requires significant preparation as well as flexibility. Understanding what is needed to set your business up for continued success can be confusing and tough to sort out on your own. The Gierach Law Firm is a small business that has been through it all, so we can help with both legal and practical concerns.

Call us today at 630-228-9413 for a confidential consultation with a skilled Naperville business law attorney. Helpful information is also available on our YouTube channel.

Source:

Investopedia