While building an empire and being your own boss may seem like a glamorous path to take, the truth of the matter is that the road to becoming a successful entrepreneur is definitely not a walk in the park. In fact, according to Fundera, merely 30% of small businesses make it past the 10-year mark.
As a new business owner gearing up to conquer the market, you’ll inevitably come across a lot of twists, turns, and road bumps along the way. This array of business uncertainties is a double-edged sword—it helps fuel some entrepreneurs towards success while causing others to crash and burn.
Aside from the volatile nature of the business, failure can be attributed to several reasons.
Why don’t most ventures make it past the 10-year mark?
Lack of business planning and focus
Developing a strong business plan is one of the critical foundations of any start-up. While having a passion for business is vital, don’t overlook the crucial role of both short- and long-term planning in building a successful venture. In determining your main objectives and target results, you’ll have the power to envision your end goal and focus your efforts on it.
It’s not enough to have deep pockets when managing your new venture; it is also necessary to know how to use your resources wisely, make the right decisions, and guide your company to success. In having the right combination of technical proficiency and management skills, you can confidently ensure a well-calculated track towards your set goals.
A strong leadership boosts employee engagement, morale, and overall performance. It allows for even the smallest of businesses to rise through the ranks and dominate in the start-up scene.
Lack of uniqueness and value
At the center of every successful business is the successful communication of their desire to fulfill the need of customers; although, it’s not as simple as it sounds. Rather than simply riding with the tide, the world’s top companies deliver the most value by going against it—focusing on embracing innovation to create something fun, unique, and of course, advantageous to their target market.
Having a unique value proposition is especially vital to your start-up as it will help in ensuring that your brand stands out from the overcrowded business landscape. So, before anything else, ask yourself what your brand is all about.
Inability to communicate the value proposition to customers
Similarly, it is equally important to ensure your target audience not only recognizes your brand but also consciously knows what your brand represents.
If you’re planning to sell skincare products to the market, you may want to consider creating content that focuses on your key value proposition. Cut through the noise by distinguishing your brand from a sea of similar products and highlighting something unique about them.
Are your products housed in sustainable containers or cruelty-free and vegan? Make a simple yet compelling content to showcase that your brand is all about delivering results while protecting the environment and your furry friends. This way, you can connect to your audience on a more personal level.
How to reach business success?
As you may have noticed from the above list, business failure has less to do with the economic climate and more to do with preparedness.
Indeed, there are a lot of things we can learn from successful CEOs as they’ve been through the treacherous road of starting a business at least once (perhaps even a few more times) in their life. Here are some of the most important tips to overcome the inescapable challenges and ever-changing variables in business.
Have a clear and relevant business goal
Competition has grown fiercer over the years, which is why it is necessary to determine your business goals—make sure they are clear throughout your organization.
In starting a new business, your resources will be limited. While it is very much tempting to hit as many birds with just one stone, you must remember to focus on solving a relevant and common problem and build on that to develop a clear set of business goals that will guide you towards making your vision a reality.
Build an awesome team
No matter the size of the company and the industry it operates in, its employees are the lifeblood of the organization. This is especially true for start-ups more than in any other business. As new ventures are often exposed to stiff competition from the very beginning, your team must have the needed skills to help you weather the inescapable storms and realize your primary business goals.
Success doesn’t happen overnight—it happens with the right motivations, strong leadership, and the best people. Intuitively, it is a must to strategize your recruitment so you can hire the right people.
Build a great company culture
Other than creating a reliable core team to help you build your company from the ground up and address start-up challenges that will come your way, it is also essential to have a great company culture. Investing in building a positive work environment is one of the most effective ways to attract, engage, and retain top talent.
With hundreds of job opportunities available both locally and internationally, start-ups must compete with big international corporations to fill vacant roles by setting their company apart and offering a unique, exciting, and inspiring work culture that job seekers are so eager to find.
While there is no foolproof plan to achieve business success, the key is to put your customers at the heart of everything you do, as well as be flexible and well-equipped to navigate the present and future challenges.
Chris Legazpi is a content writer who enjoys contributing to various business and finance blogs. He spends his free time reading books and watching films that keep him at the edge of his seat.