What are seven tips to avoid failure in business? You may think that you already know the answer to this question but the truth is that it changes with circumstances. You should always be willing to learn from past mistakes and failures to move forward. No one is born knowing how to run a business successfully. This requires hard work, determination, patience, and learning on the fly.
One of the first things you need to determine is whether your business is service-based or product-based. Service-based businesses tend to last longer because they generally provide products or services that people use daily. If you’re a service-based business, you have a much lower chance of failure than if you were selling something. People buy more of what they need so if you’re trying to sell something to them every day, their chances of failure are greater than if you were providing something exclusively.
Next, determine if your business is sales-based or customer-based. If you are selling to a direct customer, like a brick-and-mortar store, your success is based largely on your sales staff. In a sales-based business, the success of your sales staff is as much about the people as it is about the products they sell. If your employees don’t like working with customers or products, they won’t stay for long. Make your employees happy and your business will thrive.
Next, determine if your business has a goal. Do you want to build a thriving online business? Or would you like to sell physical goods in your own store? Consider whether your business has a clearly defined goal. Then write down your goals and put them in a place where everyone in the company can see them. A key goal in business is a clear idea of what you hope to accomplish with the business.
Next, set some goals for each employee as well as for your business as a whole. You should take the time to sit down with your employees and discuss what you hope to accomplish with each goal. Give them realistic goals that they can work towards every single day and help them to meet these goals.
The last thing to do is to hold everyone accountable. People who feel they have a role in the success of the business are more likely to stay with the organization and help to build it into a large successful business. If you do not hold people accountable, someone will invariably try to take over or take away what you are trying to accomplish.
It may also be helpful to create a formal or informal corporate team, with the president as the leader and the members each holding a position in importance. You could organize a “shoestring” where each week someone (or someone’s daughter if she is a teenager) is held responsible for bringing the shoe to the office on their first day. This person needs to show up every week without fail and do whatever it takes to perform the assigned task. Eventually, this may become a “junior member” role.
Keeping your small business goals and objectives in front of your employees is vital. By setting goals and meeting them you will find that you have more time to spend with your family or doing what you enjoy. Your business will begin to prosper and you will have succeeded at the highest level. Success is a journey of many steps; take it one step at a time!
In the early stages of owning your small business, you may find that things are quite rosy and there is very little to worry about. However, no matter how healthy your business has become, there is always room for growth and the success of your company depends upon you being able to progress. If you find that you are running into roadblocks along the way, find out what is hindering your progress and what can be done to correct the problem.
Another very important tip when owning a small business is, to be honest with your employees as to why you are failing. This honesty will help you build a better relationship with your employees and when times get tough they will be able to look at past problems instead of blaming you. They will know that you are making the effort to succeed and are willing to take the necessary steps to achieve your goals. Your employees will also be motivated by knowing that you are making an effort to achieve your goals even though it may not seem like it on the surface. Your employees are a big part of your business and if you are failing then you need to give them some encouragement. It won’t make them feel bad if you are having difficulties, but if you give them the encouragement that they need to continue to strive for success and giving their best efforts then it will show.
The last tip to use when owning a business is to try and stay positive. When there are setbacks in business there is a tendency to lose your head, but this should not be allowed to happen. If you allow failure to get the best of you then you are setting yourself up for much greater failure in the future. Keep your head level and work hard to achieve your goals.