5 rules when starting your own business
So many people dream of starting their own business. Many actually go out do it and then fail dismally. Frightening statistics reveal how many start-up businesses fail within the first two years. Some say as many as 80% of all start-ups fail within the first two years and of the remaining 20% another 80% fail in the following three years. The few businesses that survive the first five years will most probably be successful and exists for some time.
The question is why do so many businesses fail? There is no straight forward answer to that. People have studied this result and discovered many reasons but in this article we are going to focus on what to do to make your business sustainable. The aim is to ensure your business survives the first two years in order for you to build up a reputation as reliable and sustainable and thus enabling you to respond to that large tender that will provide you with financial independence.
There are many factors that one needs to consider when starting your own business and here are five rules you should adhere:
- Location, location, location. If you are going to sell goods then you need to be located in the best location. You can have the best product or service on offer but if people do not know of your existence you are going to fail. Find the best place to set up shop so that as many customers as possible see wha you have on offer.
- Ensure you have sufficient funding. Not many businesses can start without money. Even the smallest will need some kind of cash injection to get the ball rolling. There are several ways to get funds to start a business but the trick is to have access to funds to sustain the business when times are tough. Always save money for tough times.
- Be committed. The main reason for starting your own business is because you want to be independent. The problem is that once you have the freedom you lack the commitment. When you work for yourself you need to be 110% committed or else you are going to fail. The rule is to apply the same work ethics and commitment that you would have applied should you have been working for a boss.
- Advertise. There is an old tale about the business owner who did not believe in advertising, eventually his business failed and the first advertisement he had to place was the liquidation of the business. Advertise as much as possible.
- Be willing to grow. There are not many businesses that started out as multi-million dollar operations. Ninety nine percent of the time it is small businesses that grew. The rule is to start out small and sustainable and then grow your business over time.
If you follow these 5 simple rules you will give yourself the edge needed in succeeding in your own business.
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