Dos and Don'ts of Growing a Small Business
Anyone who starts their own business has several goals in mind, with one them being growing their business. Of course, if you're investing time and effort into a business of your own, you want it to do well —you want it to grow.
Did you know that approximately a third of all new businesses fail within two years of starting? It's a shocking number and a harsh reality, but beating the odds is possible. Here are some business tips to follow and mistakes to avoid that will help your business flourish.
Do: Embrace Calculated Risks
You know what they say: "No risk, no reward." That is true, as long as those risks are educated and calculated. It's not about closing your eyes and jumping into something completely uncertain, hoping good luck will save you, but be willing to step out of your comfort zone. Focus on the end goal, be proactive and open to creative solutions that could potentially bring great opportunities.
Don't: Neglect Customer's Needs
Sometimes you might be so focused on your own business needs and goals; you forget to pay attention to those of your customers. Don't forget your clientele keeps you in business, so you must consider their needs as you make plans for your business. You will likely find great insights that will help you grow.
Do: Make Wise Financial Decisions
Budgeting is one of the essential tools for any business to stay on track. Make sure you keep a close eye on your finances, leave some wiggle room in your budget for unexpected things, and carefully study your investment opportunities before you make a decision.
Don't: Strive for Fast-Paced Growth
Sustainable business growth happens at a steady pace, not overnight. Make plans, but make sure they are realistic. You will likely have several areas of improvement but focus on a few at a time, and slowly move on to the next one once you have carefully carried out the tasks related to the previous ones. Doing too many things at the same time can hurt you more than it can benefit you.
Do: Invest in Valuable Staff and Company Culture
Venturing into entrepreneurship is a big step, and a big part of success comes down to carefully selecting the best people to work on your dream with you. Take time to choose the right people for your business —business partners, employees, contractors, freelancers— and invest in developing a culture that aligns with your core values. It will help employee engagement, and engaged employees will help you go far.
Don't: Mix Personal and Business Finances
As you become a business owner, be sure to keep personal and business things completely separate, especially finances. Don't use your own credit card for company expenses or vice versa, not even for the points. Opening independent bank accounts, checking accounts, and getting separate credit cards will help you keep things untangled from the start.
There is no one magic recipe for business growth. However, keeping an eye out for those common startup mistakes and implementing these good practices will help make it a smoother ride.