Avoiding business failure requires a combination of strategic planning, risk management, and effective execution. One of the key ways to avoid failure is to conduct thorough market research and develop a clear understanding of the industry and target market. This will allow you to identify potential risks and opportunities, and develop a comprehensive business plan that accounts for them.
Another important step is to have a strong financial plan in place, including accurate budgeting and forecasting, as well as effective cash management. Additionally, it is essential to have a team of experienced and skilled employees who can execute the plan and adapt as needed.
It is important to stay up-to-date with industry developments and trends, so you can quickly respond to changes in the market. By taking these steps, businesses can reduce their risk of failure and increase their chances of success.
David Rusenko, the founder and CEO of Weebly, has a wealth of knowledge and experience when it comes to starting and growing a business. In order to share his expertise with others, we asked him to share his top 10 tips for those who are looking to start and grow their own businesses.
These tips are sure to provide valuable insight and guidance for anyone looking to take the entrepreneurial leap. Whether you’re just starting out or looking to take your business to the next level, these tips from a successful business leader like David Rusenko are sure to be informative and helpful.
10 solution to avoid business failure
Here are the top 10 lessons I’ve learned through starting businesses and avoiding business failure;
1. DIY market research
Are you unsure if there is a market for your product? It’s essential to conduct market research to verify if there is a demand for it. Market research does not have to be an extensive and costly undertaking.
You can reach out to your network, research similar products online, or create a survey using tools like Survey Monkey to gather feedback on your product and gather information about your target market.
2. Share your ideas
Many individuals tend to keep their unique business ideas confidential, fearing that others may steal it from them. However, this fear is unfounded. While having a great idea is essential, it is the drive and commitment to execute and make it successful that truly matters.
Don’t be afraid to share your idea, seek feedback and use it to refine your plans. The key to success is not only having a great idea but also the ability to bring it to fruition.
3. Set realistic goals
When starting a new business, it’s not uncommon for people to feel overwhelmed by the amount of work that needs to be done. It’s easy to get caught up in minor details such as creating the perfect logo or fine-tuning the business plan. However, it’s essential to prioritise growth and customer acquisition.
While other tasks may seem important, they can be done later. Focus on setting simple and achievable objectives that you can work on now, and put all your energy into achieving them. By setting clear priorities, you’ll be able to focus on what’s essential, and avoid getting bogged down in minor details.
4. Be patient with success
Achieving success in business can be a gradual process, and expecting overnight success is unrealistic. According to a survey, two-thirds of entrepreneurs cited growing their customer base as the biggest challenge their business faces.
Entrepreneurship is not without its challenges, and it’s important to be prepared for unexpected obstacles along the way. The key is to recognize that these are only temporary setbacks and to use them as learning opportunities.
Don’t give up or get discouraged, keep pushing forward and have a clear plan in place to overcome the challenges.
5. Don’t be intimidated by getting online
Having a well-designed and user-friendly website is crucial for any business, and it’s important to ensure that it’s mobile-friendly as well. However, having a great idea and business acumen doesn’t necessarily mean you have the technical skills to create an effective website.
Fortunately, there are online tools that can make the process of building a website much more manageable, even for those without coding or web design expertise. Some of these tools can also optimize your site for SEO, which can help increase your search ranking and grow your customer base.
6. Delegate, don’t micro-manage
Delegating responsibilities is a crucial aspect of successful business management. As individuals, we cannot handle everything on our own, and it is vital to have confidence in the capabilities of those we employ.
Avoiding the tendency to micromanage every task not only saves time but also fosters a positive working environment by allowing team members to thrive independently.
7. Reflect your customers’ values
Acquiring and maintaining customer loyalty is a challenging task for any new business. To achieve this, it is essential for customers to connect with the company on a personal level. Consumers tend to support businesses that align with their own values, making it crucial to consistently communicate the company’s identity and core principles.
Additionally, it is important to communicate these messages internally, as it helps to ensure that employees are also invested in the company’s goals and values.
8. Don’t go it alone
Starting a business can be a daunting task, especially when attempting to do it alone. When launching Weebly, I sought the assistance of friends to establish it, and their contributions were invaluable to the success of the company.
This also applies to startups seeking funding, as investors are more likely to invest in a team rather than just an idea. It’s not just the idea that wins investment, but the team that can instill confidence in their ability to execute it.
9. Establish cash flow
Maintaining a positive cash flow is crucial for the survival of any business, but it can be especially challenging for early-stage companies. However, there are strategies that can be implemented to ensure a steady income stream. One approach is to require payment in advance for products and services.
Another is to collect a deposit before starting work, and then invoice the remaining balance upon completion. By implementing these methods, businesses can improve their cash flow and increase their chances of success.
10. Hire great people
When launching a business, it is vital to select the right personnel to join your team. This doesn’t necessarily mean hiring individuals with extensive relevant experience, but rather those who share your passion and ambition, and would be a good fit culturally. For startups, hiring errors can be costly due to financial and reputation constraints.
Once the right team members are in place, it is crucial to keep them engaged and motivated by giving them autonomy and trust in their work.
Read more: What to do if your startup fails
Avoiding business failure requires a combination of strategic planning, careful execution, and ongoing adaptation to the changing market and internal environment. One solution is to conduct thorough market research and create a solid business plan that includes clear goals, a target customer base, and a unique value proposition.
Additionally, it is important to closely monitor financial performance, cash flow and other key performance indicators to identify any issues early on and take corrective action. Another solution is to have a well-rounded team with different skillsets and experiences, and to continuously communicate and align on the company’s vision and goals. Finally, keeping an open mind to change and being adaptable to the market is also crucial for a business to stay ahead in the game.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.