It’s a scary stat, but one we should all be aware of. Here in Australia, greater than 80% of all small businesses will fail within their first five years of operation. By extrapolating this data by the Australian Bureau of Statistics, we can then, in turn, determine that only 20% of small businesses in our country really have what it takes to be successful.
Why do some businesses do well, while others fail? There are all kinds of different reasons, from poor management to little consumer demand for a product, but the way the business owner thinks plays a significant part in determining his or her company’s viability.
When a business struggles to bring in a fair profit, a forward-thinking owner will seek help. Being willing to take advice from others and act on it is often the determining factor is whether or not a small business will sink or float.
Many business owners will turn to their accountant in times of financial crisis and their lawyer in the event of a legal dispute, but they’re often unsure of who to refer to when they need assistance with marketing and developing effective systems.
Many others simply start their business and do what everyone else already is – they approach running a company with the mindset “this is what we do” and list the facts, then wait for the customers (and the money) to roll in. If business is slow, their only idea is to lower prices in order to be competitive.
Knowing how to market their company professionally is so crucial, however. It isn’t good enough anymore just to do what everyone else has and wait for the clients to come to you. Effective marketing strategies distinguish you from others in your industry, leading you to make more profits and grow your company.
Another essential aspect of being successful in business is developing excellent communication skills and rapport with your staff. The most important aspect of running a company is people – not just the ones that buy from you, but the ones you employ. Knowing more about the people who work for you and having an excellent professional relationship with them will help you deal with issues better.
It’s also vital that small businesses put systems in place and then follow them on a consistent basis. Many will have no systems for duplication, leading them to repeat themselves over and over, wasting time and money. Fast food chain McDonalds is a prime example, on a big scale, of how duplication and refined business systems are utterly effective. McDonalds is not a success because they are constantly trying to improve their products – they’re consistently average in that regard. What they do excel at is constantly improving and staying on top of the systems that keep their business going.
What is most important isn’t having the perfect product, fanciest shop or latest equipment. What matters are the systems in place. Consistency is key!
Systems for marketing, dealing with people and leveraging are imperative – they’ll allow your business to grow without you having to do the same work over and over. With finely tuned business systems, you can provide your clients with a consistently excellent experience and watch your business grow as a result.