Starting and scaling a business is no mean feat…
Six out of ten businesses fail within the first five years, while others take longer to fail.
There are lots of reasons why a business might fail, but there are several common factors, which can be prevented by taking some advance action.
◀️ Expand your income streams
Relying on just one or two sources of income is risky, because if those sources dry up, the business will struggle to stay afloat. Diversifying your income streams and customer base is key to mitigating this risk. This doesn’t have to mean diluting your focus.
◀️ Unleash technology
These days, technology is key to staying ahead of the competition – whatever you do. Choosing the right tech can help you automate processes, improve communication and increase efficiency. It can also help you connect with customers and clients in new and innovative ways.
◀️ Maintain effective business partnerships
Your relationships with your suppliers, customers, and investors are important, and they can have a big impact on your business. If you’re not constantly maintaining strong relationships with stakeholders, it can be difficult to succeed.
◀️ Spot the warning signs
One of the most common mistakes that businesses make, is not being aware of the warning signs of failure. By the time they realise there’s a problem, it’s often too late to do anything about it. The obvious warning signs you should be aware of include declining sales, increasing debt, and difficulty meeting financial obligations.
◀️ Get help before things get out of hand
Many businesses wait too long to seek help when they’re in trouble. By the time they reach out for assistance, it’s often too late. Reaching out to people who can help is both critical and time-sensitive.