5 Tips on Starting a Small Business |
Posted: January 23, 2018 |
With roughly 28 million small businesses in the United States, turning your vision of a profitable business into a reality isn't always easy. The stiff competition adds another barrier of difficulty to the process, and if you aren't prepared for it, you'll end up closing your doors shortly thereafter. You can increase your chances of success, however, by following the tips listed below. #1) Keep Financial Records According to Statistics Brain, the most common reason small businesses fail is incompetence. This includes nonpayment of taxes, lack of financing knowledge and poor record-keeping. To protect your small business from the same fate, you must keep records of all revenue, expenses and other financial transactions. #2) Create a Business Plan Of course, you should also create a business plan. As explained by Entrepreneur, it's a vital component for a business's success. An effective business plan should provide insight into your small business, revealing market statistics, projected revenue, projected growth, competition and more. With a business plan in hand, you'll have an easier time securing funding for your small business. Banks and lenders scrutinize prospective borrowers' businesses to determine their candidacy for a loan. A detailed, well-written business plan shows these lenders that you have a plan for success; thus, increasing the chance of approval. #3) Data Protection Don't underestimate the importance of cybersecurity when starting a small business. According to research cited by CSO Online, the average cost of a small business data breach in 2017 was $117,000. If you're going to store sensitive data -- customer information, credit card numbers, vendor data, etc. -- you must implement the necessary safeguards to protect it from cyber threats. Here are some ways to strengthen your small business's cybersecurity and protect your data from cyber threats:
#4) Target Mobile Users A recent Pew survey found that 77 percent of Americans own a smartphone. As a small business owner, you should adjust your marketing strategy to target these users. One simple way to target mobile users is to create an app. So, how do you make an app exactly? If you're familiar with mobile coding, you can develop one yourself. If you aren't, it's probably best to outsource this task to a professional app development agency. With a mobile app, you can reach a larger audience while presenting your small business as a leading figure in the process. #5) Research Your Competition Competition is something that every small business faces. After all, it's an element of the free market. As a small business owner, though, you can gain the advantage by researching your competitors. If you own a retail store, for instance, see what other retailers in your area offer. Do they have the same products? What are their prices like? How does the inside of their store look? Researching your competition will provide insight into these questions and more. With that said, you shouldn't copy your competitors' business model. Rather, you should try to differentiate your small business from the rest by offering an exceptional product or service. Maybe you can improve the layout of your business, or perhaps you can offer a lower price. Starting a small business isn't easy, but that shouldn't discourage you from pursuing your dreams. Use the strategies listed here to start your small business off on the right foot.
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