More people are turning to entrepreneurship to turn a side hustle or a unique idea into something more. Every year, millions of new businesses are formed all over the world, and the majority of these ventures fall under the small business category. However, 70 percent of startups end up struggling to survive in the early stages, resulting in business closure between their second to fifth year in operations.
Many businesses fail due to lack of planning and poor management, but thankfully, most of these startup mistakes can be easily prevented. If you’re thinking about starting a business sometime this year, here are some foolproof strategies for long-term success.
Do Comprehensive Research and Preparation
Starting a business without proper preparation is a recipe for disaster. You may have a promising business idea, but if you don’t take the time to do comprehensive research about the industry and your target market, there’s a very good chance that your startup will fail to thrive. Also, skipping crucial steps to operate legally can put you in a bind, so see to it that you take care of these before offering your services or products to potential customers.
First, register your business so you’ll have personal liability protection, tax benefits, and legal benefits. While you can certainly register your startup as a sole proprietorship, you may find it to be quite limiting as it doesn’t protect your assets and gives you less wiggle room in case you want to expand in the future. Instead, consider registering your business as an LLC for liability protection. If you need help to navigate this process, consult an LLC formation agency, then see if they have a coupon code to get discounts on services.
It’s also recommended to do a thorough market research so you can understand the behaviors, needs and preferences of your potential customers or clients. Doing so can help you identify gaps in the market that your business can potentially fill, and allows you to have an edge over your competition.
Adopt New Ideas and Practices
A lot of established brick and mortar businesses have shuttered their doors due to the pandemic, but startups that were willing to innovate and adapt to the times were able to survive, despite multiple challenges. Think about the restaurants that started offering contactless takeout and delivery services, or those that only did business via curbside pickup or drive thru windows. There were also some eateries that sold prepackaged or frozen meal kits so that families could keep on enjoying their favorite foods at home.
Future-proofing is not only about securing funds and resources in case of unforeseeable events. It’s also about being flexible enough to adopt new ideas and practices to help your business stay afloat in the face of uncertainty. Being open to innovation, such as incorporating digital tools, or allowing some of your staff to do their tasks remotely, can be vital for your startup’s longevity.
Take Active Steps to Increase Customer Retention
Having loyal customers is a blessing for businesses, so don’t take them for granted and take steps to increase customer retention. Keep in mind that there’s a lot of competition out there, and more people are willing to shop around for better deals. According to a recent Nielsen survey, only 8 percent of consumers are brand loyal, and 55 percent are open to trying other products and services, especially if they’re new or if they’re part of a good promo.
There are various ways to boost customer retention, and creating an incentivized loyalty program is one of the most effective strategies to encourage your customers to keep supporting your business. You can also empower your staff through continuous training to build their knowledge and gain your customers’ trust. Consider getting customers’ feedback through online polls or discussions, and ask them to rate your products and provide information about what they like and didn’t like about them. By identifying pain points as early as possible, you can prevent issues and create solutions to improve customer experience.
Focus on Company Values
The way consumers perceive your business plays a major role in your startup’s survival and longevity. One rude action from you or your employee can go viral, and that could put your company in a bad light. Focus on company values and remind your staff to treat everyone with respect and dignity. You may also want to improve your operations by incorporating ethical and sustainable practices to foster a positive business culture. Finally, be vigilant about maintaining the quality of your services or products to enhance brand reputation and reduce complaints.
Protect your business from failure and help it reach its full potential. Consider these tips to future-proof your startup, and enjoy a successful and fruitful run for many years.
