Hurdles Small Businesses Face
- The Flop Rate
Almost 20% of small business shut down within the first 12 months of opening and only half of them will survive beyond year 5. Want to make it 10 years in business? Only 1/3 of businesses are able to reach that milestone. Having a long term plan is critical to the success of the business.
- Diverse Client Base
Having only a handful of clients or one client that makes up 50% or more of your revenue makes you extremely vulnerable. What happens if the client falls on hard times or no longer requires your services? What does that do your company? Having a diverse client base will not only give you a stable revenue stream but it will give you the needed financial independence.
- My Business, My Baby
Most entrepreneurs feel this way about their business, they have poured their blood, sweat and tears into the company. This results in the owner working extremely long hours with little to no down time to recharge. No one can sustain this schedule and burnout could cause the owner to make rash decisions or miss something. For the business to flourish, make sure you take time to recharge your batteries; this will not only make you a happier person (and your employees and family happier) but you will likely see new opportunities or ways to solve problems because you are fresh and not burnt-out. This is definitely a concept that is easier said than done, coming from a fellow entrepreneur but avoiding burnout is probably the most critical aspect of being an entrepreneur.
- Prepare for Success
This may sound counter intuitive, but many business owners fail to plan for success and when it happens they are unprepared for it. As you start increasing your sales or your client list begins to grow, make sure you are prepared for the continued growth. Make sure you have the correct infrastructure to handle the increase in business. Customers will come to you for the brand values and customer service that was present in the company when it started, make sure you carry that forward as you grow.
Now you may have read this entire article and thought to yourself “Jessica, these all seem obvious, I would never make these mistakes.” However, that is easier said and done when you are in the thick of things running your business. It is far too easy to get caught up in the day to day of running your business to forget to take the time to do long term planning and strategizing. If you are business owner and looking for guidance don’t hesitate to contact Jessica@Jessicahenmanlaw.com to book your free consultation or visit https://jessicahenmanlaw.com/startups/ to see what packages we offer
