That means a whopping 75% would go out of business before they turn 25.
So what makes the other 25% of businesses stay afloat for years and years? While there can be plenty of answers to this question, one common factor amongst all successful businesses is this: Determined business owners who take necessary steps to keep the company going, profitably.
Lucky for us, there are some basic things that we can learn from these successful business owners and implement them in our business, work, or life in general, to reach our goals, and who knows, maybe end up in the top 25%.
1) They have a plan
The first and most important thing to do is to have a plan for the future, and successful entrepreneurs recognize this. They have a business plan. They have short and long term goals in place. Planning things ahead of time helps them see the bigger picture. With a plan in place, leaders can keep the company on track of achieving success, with much fewer mistakes, and much less time wasted.
2) They understand their market
Successful business leaders are informed every step of the way, and they start even before their business is in action.
They know that having a business plan without having an understanding of the market that they’re going to jump into can be one of the biggest mistakes as a new business. Getting a pulse of the market can help businesses improvise their products and services to provide better solutions, and hence attain greater success.
Some of them even show their business plan to industry leaders, for a better perspective and to rectify any flaws that they might find before implementing it.
3) They’re great financial managers
Owners of successful businesses know that financial discipline holds importance for business prosperity and security. And they keep it in mind even before they put their plans into action.
Here are three things they keep in mind when starting a successful business:
- Having a backup deposit. They have at least six full months of operating costs in their account before you get into business. This helps them stay in business even if things don’t go according to plan.
- As already reinforced in the first point, successful business owners work on a plan. They create a formal budget for their business idea and follow it religiously. This is a very basic step, but it lays a strong foundation for a successful business.
- They monitor the financial health of their business once they get started. This helps them stay financially disciplined and helps them take the right steps at the right time and prevent damage.
4) They focus on delivering value
Understanding your customer is important, definitely. But what works better for businesses is providing value in everything — their products, services, communications, processes, content, connections, etc.
Successful entrepreneurs understand this and thus, pay more attention to detail and improve and excel in every small thing. This ultimately leads to the best products or services and makes their customer base happy. And a happy clientele is one of the key characteristics of a successful business.
5) They prioritize their tasks
Some tasks are definitely more important than others, and successful business owners acknowledge this. What they do is keep the more important things and tasks on the top of their to-do list.
Even if it is a mental to-do, this helps them complete their tasks effectively and efficiently, and on time, and helps them keep their business on track! Following this strategy, in the long run, leads them to the path of success.
6) They manage their time wisely
One of the most crucial characteristics of successful business owners is time management. Time holds more value for them since it is a limited resource. In fact, how an entrepreneur manages their time can have a huge impact on his/her success.
Successful entrepreneurs carefully spend their time on everything they can do to make their company better and take it to great heights. They avoid distractions at all costs. They treat each minute of their day valuable and very carefully plan their tasks to utilize each of their days best and in a wise manner. There are appointment scheduling tools that can help keep your time on track.
7) They build a strong network
Whatever be the industry — retail, salon and spas, health and wellness, education, professional services, food and beverage, software, etc. — business leaders remember that networking is a strong tool. It doesn’t only help them build a strong business foundation, but also helps them stay updated with industry trends, important tips and techniques and money management methods.
They look out for and become a part of online and offline business communities, associations, and organizations to be a part of the local community and stay in touch with their fellow members.
8) They take calculated risks
Risk-taking is one of the most important qualities of a successful business owner. But that doesn’t mean being a daredevil without thinking about all possible outcomes. That’s what industry leaders keep in mind. Risks and returns are like two sides of the same coin.
Owners of profitable businesses try to maximize their payoffs by minimizing their risks. They believe that taking chances is crucial for a business to move forward, it’s just that it should not be like hitting a target blindly, but in a cautious manner. And that’s the road they tread, in their journey to the heights of success.
9) They market their business proactively
Successful business owners are aware of the fact that providing good products and services isn’t enough, and that they won’t work until they reach their potential customers. So how do they ensure that customers come to know about their business? The answer is marketing.
It is an effective and powerful tool to get customers, especially those first few customers. And therefore, it is definitely a step not worth missing. Marketing efforts yield maximum results when it is done effectively. Research about what kind of marketing would work best for your business — traditional or digital.
Identify all the channels where your target audience might be interested in finding out about your business, and bring out innovative ideas to advertise your products/ services.
10) They choose the right tools
Finally, successful entrepreneurs understand that doing everything manually is not the most effective way to go. The right tools can not only save a lot of time and effort but also boost your business revenue.
Whatever the type of business, they identify the right tools and use them judiciously, according to their budget and financial capabilities. And that’s something you should definitely keep in mind.
Whether it’s appointment scheduling, marketing automation, or payroll management, successful business owners automate their workflows using the best tools.