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, we can learn some basic things from these successful business owners and implement them in our business, work, or life 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 plan for the future, and successful entrepreneurs recognize this. They have a business plan. And they also know that it is extremely important to hire freelance investment thesis consultants to set their business on the right path. 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 to achieving success with fewer mistakes and much less time wasted.
2) They understand their market
Successful business leaders are informed every step of the way and start even before their business is in action.
They know that having a business plan without understanding the market they’re going to jump into can be one of the biggest mistakes in 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 even show their business plan to industry leaders for a better perspective and to rectify any flaws they might find before implementing them.
3) They’re great financial managers
In this business world, one can now forecast future business trends using two approaches: top-down and bottom-up forecasting.
Owners of successful businesses know that financial discipline holds importance for business prosperity and security. And they keep it in mind even before they implement their plans.
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 the first point reinforces, successful business owners, work on a plan. They create a formal budget for their business idea and follow it religiously. This is a 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, helps them take the proper steps at the right time and prevents damage.
4) They focus on delivering value
Understanding your customer is essential. But what works better for businesses is providing value in 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 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, efficiently and on time and helps them keep their business on track! In the long run, following this strategy leads them to the path to 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 hugely impact his/her success.
Successful entrepreneurs carefully spend their time on everything they can to improve their company and take it to great heights. They avoid distractions at all costs. They treat each minute of their day as 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 considering 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 cautiously. And that’s the road they tread in their journey to the heights of success. Even if they decide to put their business up for sale, they already have the risks calculated.
9) They market their business proactively
Successful business owners know that providing good products and services isn’t enough and 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 a step not worth missing. Marketing efforts yield maximum results when it is done effectively. Research 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 or services.
10) They choose the right tools
Finally, successful entrepreneurs understand that doing everything manually is not the most effective way. The right tools can save a lot of time and effort and increase sales to 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 keep in mind.
Whether it’s appointment scheduling, marketing automation, or payroll management, successful business owners automate their workflows using the best tools.