Tweet

How to run a business successfully

Written by: richard mcgregor

Article Overview: According to most business surveys, one-third of small businesses fail in the first two years and one-half fail within the first five years. Such statistics might discourage even the most determined potential entrepreneurs from trying to realize their business dreams. But avoiding some of the most serious mistakes entrepreneurs can begin to run a business successfully.

How to run a business successfully

According to most business surveys, one-third of small businesses fail in the first two years and one-half fail within the first five years. Such statistics might discourage even the most determined potential entrepreneurs from trying to realize their business dreams. But avoiding some of the most serious mistakes entrepreneurs can begin to run a business successfully.

The most devastating actions of most small business owners during their first year of operation are:

1. Too Little Cash

"The biggest issue that most entrepreneurs have is money - they're not properly capitalized," says Douglas Long, owner of a consulting firm that advises entrepreneurs. Long tell his clients that they need approximately three times what they think they need at the beginning to provide them with a cushion in a possible economic downturn.

2. Underestimating the Importance of Sales Sales is the lifeblood of any company. If an entrepreneur wants to run a business successfully he must attention to sales and revenues. Every company needs a dedicated and competent sales team and if that is the business owner, he or she needs to develop the requisite sales skills to make the business a success.

3. Thin on Tech

Make sure employees have the latest communication technology so they can respond quickly to customers. Small companies can often adopt new technologies more easily than older companies.

4. Thinking Small Even when a business has limited resources, it's not a good idea to show it. A small business can only grow as far as you envisioned it. It's important that as a business leader you learned to focus on the advantages a small firm offered in the industry which you are a part of and aim to dominate your area.

5. Losing Focus

The business owner needs to have a clear vision of everything the company does and what it will take to make each part of the business a success. Even when the new business owner faces the prospect of bankruptcy, due to debt, or because a franchise agreement has become burdensome, or too many customers are not paying their bills, it is still not too late to turn the business around and get out of trouble if you have a clear and definite focus and plan of action for your business.

Related Articles
  Business Challenges: A Secret Tip or Two
  Working At Home Online WIll Not Always Be Easy
  Handling Objections in Four Simple Steps (Really)
  The Power of Effective Communication
  4 Top Secrets To Successfully Starting A Home Business

Article Tags: business dreams, business surveys, first five years, small businesses, statistics
Referred by: http://jaykubassek.com



Related Forum Posts
Business Plans - Hey Brandon, I do agree that there is a link to a sound business plan and a successful business. When you think about it, one of the purposes of a business plan is to give the owners some direction. When you have a good "plan" to follow, odds are you won't end up in 100 different directions. And yes, I would love to look at some good and successfully complete business plans. -Kai
Re: Let’s talk about the ways of marketing your products, servic - Before we can answer your question successfully, we must first know the kind of business you are into. This will give us a good headstart in answering your question
A great Women's Industry - Admittedly, I think I am in a pretty gender neutral industry (promotional product sales) in terms of who produces better sales people (men or women). Maybe its just because its how I got into the business (team mom for my kids booster clubs when they were in high school) but I would even say there are more women doing what I do (well) than men. Not to start an issue - just stating how great the promo business is for women and the 'stay at home' mom type to jump into this industry. I love seeing a "mom" succeed in business. I am so grateful to be in a position where I can give advice and help other entreneur moms start their own business (and successfully at that).
How do I find help for my website? - I would suggest Job Trak. It is where most college students look for job information as well as internship opportunities. I have hired successfully that way, or from ads in local college daily papers.
Re: Hey Ashish, Welcome! - Hi Martin, Thanks a lot for your warm welcome. Definately it's an amazing forum, successfully carried by lot many experienced people like you. I'm looking forward to lot of interaction and to learn lot of things from you folks as i'm a beginner to my carrier. The vast experience shared by all the members here will definately help me, is what i feel. Regards Ashish


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How Promotional Caps became a Fashion Trend

What is Discretionary Cash Flow

Using Social Media Marketing

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.