Three Things Businesses Should Know to Ensure they Don’t Fail
According to a report by the BBC, 4 out of 5 new businesses end in failure. This means that if you’re considering starting up a new company, you should really get to grips with what the best people in your perspective industry have done right, so that you can follow in their success. Along the same lines, you should learn what some companies that failed did wrong. Maybe their mistakes were avoidable. So here are 3 things you should know to ensure your business doesn’t go under.
Make sure your Business has a System, not just Talent
Although it’s important that your business attracts the right talent to the organisation, it’s even more important that your company follows a process which is organised systematically.
The importance of this makes itself clear if you start seeing underperformance in an aspect of your business. If you simply rely on talent and don’t have a clear system in place, it will be difficult to see where your problems are coming from, and how to fix them. On the other hand, if you do have a system in place, you’ll be able to attach metrics and targets to various components of your business, and this will allow you to easily locate any performance slip and fix it.
Perseverance could Save you or Ruin You
When strapped for cash, the aeroplane company Boeing turned to selling furniture to subsidise its losses. It might seem a strange move, but this came after a slump in heir aeroplane orders after the First World War. Boeing’s adaptability was key to their success. If they had persevered in the aeroplane business through this difficult time, they could have failed.
A good tip is to draw a point in time which will be your cut-off point – a point where you will reassess your business model once it’s passed.
Know your Legal Responsibilities
If you don’t thoroughly research the contract and legal requirements which your business will need to go by, you could end up in trouble even before you take on your first client. This is tricky – particularly when your business is quite niche or obscure.
You should also try to be aware of whatever insurance you’ll need. So if you want to be a courier, for example, you’ll need to look out for specialist insurance for that specific industry.
Ultimately, by following the above advice, you’ll hopefully keep your business in the all okay, and not become one of the 4/5 start-ups that fail.