The past years have been extremely stressful for businesses all across the globe. The pandemic forced us to stay behind doors and limited human interaction. This further led to business owners incurring big losses.
That being said, as small business owners, the national economy, no matter what country you belong to, isn’t ideal for operations. That can explain why Forbes reported 8 out of 10 small businesses in the U.S itself fail (which is one leading economy, globally) within their first 18 months of operations.
You can blame several things for this failure. Right from insufficient investments to a falling economy, the list is unending However, the bottom line remains the same: Failure.
However, as entrepreneurs, you must always keep one thing in mind, i.e., failure is nothing but a stepping stone towards your dream business. No matter how the market is, you need to find ways to keep going. To assist you in that, I have enlisted 6 ways that can help you do that.
1. Maintain a cash reserve
How long do you think it will take for you to start making profits in your small business? If you are clueless about it, here’s a quick fact check for you: Even the super-successful businesses start making profits at least after three years of inception. This explains why most small businesses shut down within the first three years.
Many small businesses fail to comply with the liquidity requirements because even if you aren’t making any profits, you still need money to run operations. This adversity can be conquered by maintaining a cash reserve and adding money to it, weekly, or monthly.
2. Expensive advertising – not for you
Gone are the days when the only forms of advertising were television and print. Even though the benefits are paramount, the costs involved in traditional forms of advertising are extremely high.
That being said, we are living in an era that is being driven by tech, so why not make use of it? Plus, online advertising is so much more affordable. Stick your advertising campaigns to SEO-driven websites, YouTube video campaigns, Instagram, and other social media sites.
If you are one of the many who believe outsourcing is expensive, it’s time you rethink it.
Outsourcing non-core activities not only ensures higher accuracy but also leaves you with extra time to invest in your core business.
4. Make online money transfers
You might wonder that drafting manual cheques isn’t that costly and opting for money transfers won’t really make a big difference. But as your business grows, so will your total number of employees along with the number of transactions. So, the cost is bound to rise.
In the initial days, you must aim to save as much as possible, and making online transfers will definitely save you some extra bucks (and a lot of manual labor!).
5. Telecommuting is the future
The pandemic, now more than ever, introduces us to the power of telecommuting. Now that the world is aware of its benefits, it’s bound to become a requisition in the coming years.
Plus, if you are just starting, you can also think of a completely virtual business model, and save office rent. But yes, that depends a lot on your area of work and industry of operation.
6. Make better decisions about money
Effective money decisions depend a lot on your planning. The rule of thumb is, you have to spend money, to make money. If you are confused about how to do it, consider an expert like https://www.finnacle.com.au/ to guide you through the process.
Remember, money decisions make or break the organization. One wrong step and your entire dream can be stripped to pieces. Be extra cautious and don’t hesitate to invest in an expert if you think you are incapable of making these crucial decisions.
In the end, I would like to wrap up with one last piece of advice: As entrepreneurs, you need to learn to be proactive, not reactive. Other than that, remember building a business is a journey – you can’t expect success in one day of operation. Be patient, success is making its way to you!