We’re all familiar with the alarming stat of 51% of businesses surviving beyond their first five years. So, how do you beat the odds? The trick is to understand the common challenges your business will likely face and be prepared to face them head-on. Here are the top five challenges most will say have been their biggest hurdle when starting their own business.
Writing a good business plan
A business plan outlines your goals and how you’ll attain them. Without this plan, you won’t get the funding you need and can easily get off track when it comes to spending. Rather than working in your business, work on your business to develop a strong plan that will convince others why they should work with you.
Writing a strong elevator pitch
First impressions are everything; you only have seconds to catch the attention of those you’re trying to sell to. Your elevator pitch is a short summary of your business and its proposition. It should be clear, clever, and straight to the point with what your customers can expect when engaging with your business. We recommend practising it out loud so you can deliver it with confidence.
Gain and retain customers
You can’t have one without the other. If you don’t have a large marketing budget to gain new customers, you need to be strategic and creative in attracting new customers. Email marketing, social media, Google business and other free platforms can help you get your name out there while showing your current clientele your knowledge and success. Don’t be afraid to ask your clients what they feel you’re doing well at vs. what you can improve on. Also, it doesn’t hurt to ask them to review you on Google business, and it’s a great way they can show their support and help you gain viewership.
Keeping your financials in check
Reviewing and understanding your financials frequently will help you understand what’s coming in and going out. To start, add up your expenses each month, so you know your gross sales needed to cover the basic expenses. Then, review your sales over the last year to figure out where your sales are coming from and how you can project future sales are moving forward.
Cashflow challenges are often the most common struggle we hear when it comes to running a small business. If your cashflow management is poor, your business will suffer. Hiring the right team to review your cashflow, financials and industry trends can keep your business thriving. Let DMC handle the numbers while you focus on the business – after all, it’s our goal to make your business a success.