In the first year of their existence, almost 20 percent of small businesses fail. While this number can be discouraging to some, it also means that over 80 percent of startups succeed in their first years. If you recently started your own small business, several factors will play a part in your success. By planning out the following factors, you can help your startup make it through the first few years of its life.
One of the most vital parts of your small business is your product availability. If you aren’t getting your products into your store correctly, you won’t be able to ship them to customers efficiently. Before you list a new item on your store website or social media, make sure you have the inventory to back it up. Depending on the marketing projections, you may sell out in just a few hours or it may take several days. No matter how quickly you expect to sell out, it’s essential to have a well-stocked inventory before you post an item.
If you aren’t producing your wares yourself, you may want to look into a good wholesaler. Purchasing your items wholesale will keep your costs down, which will boost your profits in turn. Wholesale distribution will help ensure your inventory stays full without breaking your business accounts. Many wholesalers allow you to choose the products and quantity you purchase, which allows you to regulate costs and inventory space. By making sure your product availability is up to par, you can help your young startup succeed in its fledgling years.
Budgeting and pricing
Of course, it’s impossible to discuss the success of small businesses without talking about money. A majority of the young businesses that fail do so because of a lack of financial planning. At every stage of your startup’s life, it’s essential to have a comprehensive budget in place. When your business is young, you may need to use your personal bank account or ask family and friends for money to help pay the bills. As your client list grows, it would be wise to find an investor and get outside backing for your startup.
Part of a good budget is having good pricing on your products. If your prices are losing you customers, your business won’t make it past the first couple of years of existence. When you go to price something, add up all the costs it takes to produce it. If you had to purchase it from a wholesaler, make sure you include the shipping and distribution costs. Once you have that number, add how much profit you’d like to make per product. This number will usually be a percentage and can be adjusted as your business needs change. Handling your money properly as a business owner will help you succeed.
Finally, marketing your small business will help it survive the first few years of its life. Right now, the market is saturated with small businesses in almost every avenue of production. If you want your brand to stand out, you need to have an effective marketing strategy. Before you launch your startup, design a logo and brand name that will catch customers’ eyes as they scroll through their phones.
Along similar lines, take advantage of current marketing trends, such as social media. By marketing your small business on social media forums, you can get broad advertising for little to no overhead cost. The algorithms these sites run on will push your startup to the people who are most likely to purchase from you, which will grow your company little by little. If you feel like your ads aren’t being seen, you can pay a small fee to have them show up in the feeds of people in your area. By using smart marketing tactics, you can help your startup succeed.
Overall, your small business has every chance to succeed. By implementing these strategies, you can help your startup make it past infancy and bring in booming profits.