Any individual can launch a business. But making it successful is the hard part. In the U.S., about 9% of companies shut down every year and only 8% are started. However, since 2009, the number of applications for new businesses has been increasing which is good news. Around 50% of new enterprises close within five years and about 80% of new firms survive their initial 12 months.
The survival numbers depend on the sector. Industries like social assistance and healthcare have above-average rates of survival, while fields such as transportation and construction have lower figures. To help you successfully run your small business, we provide you a few best practices that you can implement.
Know your Market and Set Well-Defined KPIs
Start by conducting detailed, careful market research. This will give you concrete information on market trends, demand and expected growth, existing competition, your ideal consumers, and more. You can use these valuable insights to make educated business goals and decisions.
Be sure about the 4 Ps of marketing which are place, product, promotion, and price. They can help you create effective market research, customer personas, and marketing plan, and launch your company’s offerings. Modern marketing also incorporates 8 Ps which are product, place, price, promotion, performance, physical evidence, process, and people.
Besides your business research and goals, take time to cater to your personal needs and plans too. These can help you run your business in a more motivated manner.
Regularly Review a Business Strategy
Write down your professional goals and procedures to craft a business plan and share it with your stakeholders. You can store this draft in a cloud service and easily share it with the needed people for collaboration. This permits you to easily and automatically make, save, and share changes.
It’s vital to write down your plan, goals, and processes as this will help you remember them so you can take steps to achieve them. By creating a strategy, you’re more likely to implement it.
Set Profitability and Revenue Targets
It’s essential for businesses to make profits so they can re-invest it for further growth. Assess your costs such as capital, staff, production, sourcing, and more, and understand the profits your company needs to make to be successful.
Use this opportunity to analyze your products’ pricing structure? Are your goods priced suitably? How many pieces do you need to sell in a period to attain your profitability and revenue targets? Document this information clearly so that you understand the processes you need to implement to run a thriving business.
Create a Top-Notch HR Team
Employee engagement and company culture can exert immense influence on your firm’s success. Hire the best HR talent in the business and invest in a quality HRIS with integrated payroll software. A great HR team armed with the right tools can help to make your employees engaged and motivate them to perform at their best and contribute to business growth.
Invest in onboarding and training processes to prepare your workforce to do excellent work and tackle job-related challenges. The HR team can focus on improving employee engagement and staff net promoter scores. They can work to boost personnel sentiment, enhance productivity, and make your staff members ambassadors of your business and brand who will recommend your firm to their contacts.
Quarterly or monthly performance discussions can improve staff mental health and develop team camaraderie. The meetings can produce an atmosphere of trust that can lead to better innovation. Make your company attractive to rare talent by providing a positive work culture and robust career advancement opportunities.
Top-performing professionals seek organization-wide respect and recognition and wish to work for firms that appreciate their hard work. They know that they drive business growth and want their company to acknowledge and admire this fact. Qualified HR executives with an array of useful tools including a complete payroll solution can better serve the needs and demands of your employees. Engaged, happy staff members perform great work which will automatically result in company growth.
Hire the Best Talent
Develop a superteam of experts who can deliver the goods for your business. Get their feedback and input, and get them involved in decisions which affect their work. Make them invested in their personal as well as company growth to create a win-win situation for all parties.
You can do this by developing a transparent onboarding plan and a process to measure results. As your business scales and expands, you can minimize the effort and time needed to deal with employee turnover. Business owners should not try to do everything themselves. They can find accessible and low-costs ways to outsource some of their tasks to experts.
Employ hourly workers if you don’t require full-time staff for some skills. Buy simple productized services to save money and make your business more efficient. A lot of new companies do not take good care of their workforce and a negative work culture is produced as a result when the firm is new.
As a busy business owner, you should delegate less important work to consultants, freelancers, and employees as needed. This will reduce the workload of full-time staff and you and they can focus on priority tasks.
Offer Generous Benefits to Your Employees
To build a robust team of top performers, you should make your workforce incentivized and motivated to give their best. That’s why it’s important to offer good benefits. While making recruiting decisions, decide how much of your budget you can allot for staff benefits. Then, find out about the mandatory local, state, and federal benefits that you need to provide as an employer. Some required benefits are:
Compliance with FMLA (Family and Medical Leave Act)
Time for military service, jury duty, and voting
Unemployment insurance and taxes
You can make your company more competitive by offering elective benefits such as life insurance, disability insurance (mandatory in some states), paid holidays and/or vacation, retirement savings, and health insurance. Perform an analysis of the benefits presented by other firms in your sector to learn what type of benefits to provide to your employees.
Invest in the Right Technology Solutions for Business Growth
There are a number of SaaS solutions and software products and apps that you can buy to boost your company’s growth. Select tools that make each business process easier to perform. Standalone applications for specific tasks are recommended.
Compare the cost of the software and the value it provides. Finally, ensure the tools are scalable and can meet your company’s growing needs and demands.
Mohd Sohel Ather
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