Practical Ways To Beat The Odds As A Novice Entrepreneur

It’s well-documented that a high percentage of new businesses fail. Depending on which articles and reports you read, up to 90% of startups fold within the first five years of trading. These statistics may evoke anxiety if you’re an aspiring entrepreneur, but there are ways to beat the odds. In this informative guide, we’ll outline some practical ways to improve your chances of success as a new business owner. 

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Research the market 

The first thing to do when you have an ingenious business idea or a desire to launch your own company is to research the market. Learn about competitors, define your target audience and get to know your ideal customer as well as possible. See what other products and services are available within the same categories and gauge the level of demand. If other businesses within the same industry are struggling and demand is falling, this is a warning sign. Try to identify opportunities within growing markets and tap into emerging trends. Use your research to develop ideas and make decisions that will help you attract customers, market your products effectively and build relationships with prospective customers. Everything about your brand should connect and resonate with your ideal client or buyer. 

Take advantage of targeted tools and technology

Technology is advancing at pace, which is brilliant news for entrepreneurs. There are all kinds of tools, platforms, devices and software you can use to help you launch and run a successful business. From automated sales software and tools that enable seamless communications between business teams or solopreneurs and their clients, there are tools for every company. Tailor your investments to suit the type of business, your target market and your objectives. Look for targeted solutions within your industry that optimize efficiency and enhance customer experience. Online ordering is a brilliant example if you’re setting up a business like an online pharmacy. There are several benefits to recurring payments for online pharmacies including a stable, regular income for business owners, added convenience for customers and potential cost savings for people who need repeat prescriptions. If you’re not up to speed with the latest tech developments, research online and seek expert advice. 

Prioritize money management

Cash flow problems are among the most common causes of new business failure. The cost of launching a startup varies hugely, but prioritizing money management is beneficial for every entrepreneur. Whether you’ve invested capital or borrowed money, it’s critical to focus on your finances and analyze figures carefully. Take care when borrowing money and avoid trying to grow your business too quickly. Even if your products are flying off the shelves or your restaurant is fully booked most days, it’s wise to wait until you’re turning over a profit before expanding.

Another crucial aspect of financial planning, especially in the food industry, is securing affordable restaurant insurance. This is merely an example, but running a restaurant comes with unique risks, like fires, kitchen accidents, and even customer claims can quickly become financial nightmares. 

However, the right insurance policy protects against unexpected costs and ensures that one setback doesn’t derail your entire business. Besides, there are so many new restaurant owners out there that overlook this, thinking it’s an unnecessary expense, but in reality, it’s one of the smartest investments you can make. But without proper coverage, a single lawsuit or kitchen disaster could wipe out your profits and put your business in jeopardy.

Going too far too fast is risky. It’s also important to make sure the demand is there before you grow. If the demand for your products or services has already peaked, you may find that putting more money into that specific product or service results in losses. Try to be agile, encourage evolution and innovation and monitor emerging trends. 

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The statistics for startup survival make for painful reading for aspiring entrepreneurs, but there are ways to beat the odds and improve the chances of success. Three key areas to focus on include market research, using targeted tech and tools to enhance customer experience and improve efficiency and managing your business finances.