Every year there
are millions of new small businesses opening each year and that number does not
include the small one-person entrepreneurships that pop up every day. According
to reports, two-thirds of new businesses survive at least two years and 44
percent survive at least four years. Two of the key factors in the businesses
survival and ability to thrive are:
·
The
owner's education level and
·
The
owner's reason for starting the firm in the first place.
How can you
make sure that you are among the winners rather than the losers in this high
stakes game? The answer lies in you. You must ask yourself five key questions
to determine whether your own small business will survive and thrive.
1. AM I READY TO START A BUSINESS OF
MY OWN?
Have you
mentally prepared yourself for the switch from employee (or student or whatever
label fits you currently) to boss. You are going to be the one making decisions
now about everything from office products to product line. This total control
is one of the driving forces behind many people who take the plunge into
starting their own business but it is also one of the elements that drive new entrepreneurs
crazy. When you start out there is an endless list of decisions that need to be
made and new questions crop up every day.
Even more
important you will need to remember that in a small business you will wear many
hats. Even if you manage to start out with one or more employees you will each
fulfill more than one role in your new business? And if you are running a
one-man or one-woman show then you serve in every capacity from file clerk to
maintenance crew to salesman to CEO. Can you handle switching from task to task
and role to role like that? Are you willing to make those switches?
Similarly,
have you prepared your family and friends for this switch in attitude? Your
life is going to change -- probably pretty drastically -- and that change can
have a positive or negative impact on your family life and social interactions.
It will make things much easier if your friends and family are supportive going
into the process.
2. WHO ARE YOUR TARGET AUDIENCES?
There is
need to identify what drives your passion and what niche you wish to explore, one
of the reasons many businesses fail is that they fail to focus on a target
audience. Yes if you are a major discount chain then you can sell everything
from peanuts to wallpaper but this type of business requires vast resources
that just aren't available to the small business. But small businesses dominate
the marketplace (creating more than 50 percent of the private gross domestic
product in any economy) by finding a different approach -- a niche.
Knowing your
niche means you are better able to find, target, and maintain your customers as
well as provide the best possible goods and services to that customer base.
That focus is one of your best chances to not only survive but to thrive in a
very competitive marketplace.
3. WHAT IS YOUR ACTION PLAN?
Another key
factor in the survival and ultimate success of your business is how much
planning you do before you open your electronic or physical doors. You need to decide if your business will be
based on the internet or include more traditional models. Are you going to work
full-time or part-time at your new business? Are you going to hire help or do
it all alone? Have you written (or at least outlined) your business plan?
Dreaming, thinking and planning can save you much trouble and waste later when
things are hectic and problems strike. Planning can also help keep you focused
and to balance your spending and time.
4. WHO WILL BE YOUR MENTOR OR
BUSINESS ADVISER?
At some
point, no matter how experienced a business person you are, you will need help.
You will need support, advice, tools, or information -- or all of the above.
One of
