The drive to attain financial security and stability often drives people to try their hand in entrepreneurship notes a team of franchise brokers. While a small fraction of entrepreneurs realize these dreams, the rest of them aren’t so lucky.
Research shows that 50 percent of new businesses fail within the first five years. All in all, only 35 percent of startup make it past the ten-year mark. Such grim statistics offer a glimpse into the amount of effort that goes to making the business a success.
If you want to join this merry band of successful entrepreneurs, you need to make a few changes.
Polish your leadership skills
Poor management skill is the bane of many entrepreneurs, and it’s evident in many forms. Business owners without experience supervising staff, making management decisions tend to have a hard time when starting out.
Lack of active management especially when the business is young increases the risk of failure. Therefore, there’s a need to polish your leadership skills when considering to dip your toes in entrepreneurship. As a business owner, you will be in charge of every aspect of the business, from financial management to customer service.
Failing to have a grasp on these matters can lower your edge on the market. Luckily, you can improve your skills and abilities by reading books, getting a mentor, or even enrolling for training. Interacting with other successful entrepreneurs can also help shore up your skills and knowledge.
Create a solid business model
Successful businesses flow sound business models that have been proven successful in generating revenues. Therefore, you need to pursue a business idea that is easy to implement, following proven strategic guidelines.
By researching what model other players in the market use, you can create one that fits your needs. Successful models cover financial forecasting based on anticipated revenues, strategic marketing plans, and possible solutions to potential problems.
You need to create milestones and assign realistic timelines to let you measure track progress and success as well as solve any arising issues. Infusing the best business practices into your business model help you to avoid failure.
Polish financial management skills
For your business to succeed, you need to account for every last time that comes in or goes out. Otherwise, you might run into severe financial headwinds somewhere down the line.
For starters, you need to contingency funding plan to help you through the lean times or if you run into an unforeseen crisis. If you don’t have your financial ducks in a row, you will have a hard time running a business.
Poor accounting practices lead down a slippery slope that guarantees business failure. If your financial skills are not up to the task, consider hiring a qualified accountant to handle that part of your business.
Despite offering products and services that are in demand, many businesses don’t make it to the fifth year of operation. Such businesses run into severe headwinds along the way, and they sadly have to close down.
If you are keen to avoid such fate, it behooves you to make every effort to improve your business management skills to a high level of competency. Only then can you escape some of the common problem that plague new entrepreneurs.