The success of small businesses and startups worldwide have paved the way for people having a great idea to move forward and start their own. But it’s also a reality that many business fail too. In spite of a great idea and abundance of money sometimes cannot save a startup from a disaster. While one can cite many reasons for this, there are certain factors which are necessary to look at. Bad marketing or wrong timing of launching a business are just two of them.
There are some aspects that people usually think are responsible for the failure of a venture but there are many factors which are related to a specific business. For example, an online fashion store may fail because of bad web designing or not enough Call to Action buttons or links on the home page. But one can think of a better solution in this regard. However, some operational and business aspects are what make a business falter right from the start.
In this blog, I will try to define 5 of them through which you can lay a solid foundation for any business.
It is essential to allocate a budget for every activity regardless of the nature of business. Yearly budgets need to be prepared along with enough emphasis on quarterly and bi-annually too according to business needs and a regular check within a specific periodic needs to be done. One should keep revising the budget according to new demands and market trends/scenario to keep the cash flow in control.
Budgeting helps keep a control on the expenses and that’s why you need to make sure you are on top of your game concerning this factor for a smooth start and steady cash flow throughout the fiscal year.
Cash Flow Management
Cash flow is essential to every business’s survival, and in spite of this fact many young entrepreneurs fail to pay the bills and all expenses while they’re waiting for sales to happen. If your cash flow is not up to the mark, then you will face dire consequences in your professional life.
Initially, the sales of any new company are not ideal. That’s where the cash management needs to be maintained at least in the initial few years. A businessman needs to have cash reserves which can help him carry daily operations and run the business smoothly without thinking about the next day after the everyday end.
Hiring the Right Candidate for the Right Position
If you think that you can hire the position holders from the best university in town and they will perform according to your wish, you do not understand the business dynamics these days. To successfully run your business, you need professional staff having experience in dealing with all kinds of adverse situations. These people will make it through the thick and thin that any business faces regularly. Finding people who think they can fit in a startup/small business environment are not many and that’s why you find it difficult to hire such people.
You need to make sure that the fresh candidates are the ones who need your full attention. Training and hands-on experience of facing tough scenarios will make them stronger and be able to do the required work according to their duty and responsibility. The companies who try to save the cost of such trainings usually wake up when the operational situation becomes out of control.
Using all the resources that you have and having a sound financial background will not work if you are not able to market your product well. In this era, digital marketing and having a strong online presence is the key to any business’s success. Just the social media presence, as many businesses do possess, is not the solution of all the problems. An ecommerce ready website is what every business needs whether is a small time flower shop or a big departmental store.
Startups do need recognition especially among its target market and one way to do it is through a website. The need for web designing services by a renowned firm is one of the factors that can make or break a small business. An attractive website along with engaging content can be instrumental in the success of a startup/SME. So you need to make sure your marketing through the apt use of a website is done efficiently and effectively.