Starting a new business is an exciting, but incredibly risky decision. In the UK alone, statistics suggest that around 1 in 5 new businesses will fail, and it’s not always anyone’s fault when they do. It’s a mark of dedication and commitment if you know that statistic and you still want to persevere with starting up a business, but unfortunately, dedication and commitment aren’t enough. If you want your business to succeed, there are several conditions it’s going to have to fulfil. Here are 10 things every business needs in order to prosper.
1. A rock-solid business plan
You won’t get very far in the business world if you haven’t built a business plan. This involves looking carefully and closely at your product or service, your intended demographic, and how you’re going to operate the business within the next five to ten years (assuming no unpredictable catastrophes occur, of course). Keep it simple, understand what your market needs (and what your investors want from you), and be sure to include plenty of practical information about how you’re going to enact the plan.
2. Short-term and long-term funding
Whether you’re yet to start your business or you’re a few years in and floundering, you should know the importance of having money available to you. Any way you can amass the cash to inject into your business is valid and legitimate. If you’re just in the process of starting the business up and you don’t have the greatest credit rating, for example, why not consider bad credit personal loans to give you a leg up? There are also dedicated business loans and investment plans you can look into for that extra push.
3. Customer engagement
Every business is nothing without its customers or clients. These are the people who will keep your profits rolling in, so it’s vital to listen to their concerns and address their queries as quickly as you can. Send out regular surveys to customers to get their thoughts about your business. When a customer or client completes your order process (whatever form that may take), ask if you can get their opinion on how it went. Your social media strategy should also revolve around engagement. Speaking of which…
4. A sound social media strategy
The vast majority of a business’ marketing strategy is based on social media these days. That’s where your customers will talk to you and try to engage with you, and it’s where you can drum up organic word of mouth for new products or services you’re introducing as well. A robust, consistent social media strategy will help you to communicate your brand values and interface with customers on a regular basis, which should, in turn, drive increased traffic.
5. An understanding of the competition
Far too many businesses have failed because they haven’t adequately understood who their competition is. Undertaking constant and thorough market research is critical for establishing a foothold for yourself in your chosen industry. If you don’t do market research, you won’t know what your competitors are doing, and you might be missing out on huge opportunities to cater to niches they’re ignoring. You can do a huge amount of market research with nothing but a web search, so there’s no excuse not to start!
6. Strong branding
Your branding encapsulates everything from your name to your graphic design. Strong, clear branding is essential because it will help customers to understand who you are and what you’re about at a glance. Branding should be simple and ubiquitous; it should be immediately clear what values you’re trying to communicate. This means if your business is about logistics, your graphics and name should reflect that in some way, and you should reinforce that wherever you can.
7. Focus on a single area
Your business is not Amazon, and it is not likely to ever become Amazon. You’re far better off focusing on a single area rather than trying to diversify in an attempt to please as many people as possible. This way, you can devote yourself to becoming as successful in that area as you can, without your attention being pulled one way or another by different demographics and markets. When your business begins to grow significantly, you can think about branching out, but until then, try to stay on track.
8. A unique website
Obviously, social media should form the backbone of your marketing strategy, but it can’t be all you’re doing to engage with customers and clients. Having a website of your own is also of paramount importance, because you can control every aspect of its visual branding and messaging. A website makes you look professional to anyone who wants to know about you, and it’s a great way to communicate your brand values without the overriding branding of a social media platform.
9. Excellent data analysis
In order for your business to continue growing and expanding, you’ll need superlative data management and analysis capabilities. By understanding data metrics like customer click-through rate and engagement, you’ll be able to focus on the areas of your business that are weaker, or shore up strengths so that you’re mighty in one particular field. Without data analysis, you’re simply stumbling around in the dark, so be sure not to neglect this aspect of your business.
10. Good hiring practices
You may not even be at the stage where it’s time to start thinking about hiring new staff yet, but if you are, it’s essential to make sure the staff you’re hiring are the right people. If this means you’re being more exacting than you might like, then so be it; it’s a small price to pay for ensuring that only the best people are working for you. Make sure your interview process is thorough, and don’t make a hire unless you’re absolutely sure about it. Listen to your instincts!
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