4 Ways to Ensure a Long Life for Your New Business
New small businesses, though largely responsible for employing a hefty amount of the American population, have a reputation for fizzling out about two years after starting up.
It’s relatively easy to start and get in the swing of things with all the excitement and hype that goes along with a new venture, but once the dust settles, it’s important for an entrepreneur to take a few precautions in order to succeed for longer than two years.
Here are four things to keep in mind to ensure a long, healthy life for your business:
1. You don’t need a crazy office
As previously mentioned, it’s easy to get caught up in the hype of a new business. You’ll want your business to look as successful as you plan on being. But don’t spend in areas you don’t need to. You don’t absolutely need that mini fridge in your office; a file cabinet on the other hand--yes, a bit more necessary.
Lots of very successful businesses started out in a garage or the living room of a house. Your business doesn’t need to look the part in its early stages to be successful later down the road.
2. Have a positive ROI
It is so crucial to make sure your return on investment is positive. If you’re blindly spending money on marketing endeavors, partnerships, new hires, new products, and services, it’s nearly impossible to track which of those methods are working for you. If you’re just throwing money at different methods and hoping for a positive outcome, it’s hard to know where to "double down" and when to abandon initiatives unless you are tracking and understanding where the revenue is coming from.
Really knowing ROI on each initiative and digging deeper to understand those key metrics is critically important to making sure you are making solid decisions in the growth and success of the business. Do your research and be meticulous.
Other Articles From AllBusiness.com:
- The Complete 35-Step Guide for Entrepreneurs Starting a Business
- 25 Frequently Asked Questions on Starting a Business
- 50 Questions Angel Investors Will Ask Entrepreneurs
- 17 Key Lessons for Entrepreneurs Starting A Business
3. Customers are your marketing secret weapon
It’s a given that customers are the key to a successful business, but it is often forgotten that they are your best source of referrals. If you are outstandingly good with your customers, they will not only come back, but they’ll feel the need to tell all their friends (and, hopefully, Yelp) about you as well. Happy customers can be your best marketing tool.
4. Treat your employees well
Your employees are the face of your business and they are who interact with the customers. You want your employees happy to keep your customers happy--plus, a happier employee will always produce better work.
Focus on company culture as you focus on your customers. Celebrate birthdays and holidays, reward hard work, and trust your employees with enough responsibility so that they feel like an integral part of the company.
