While there are some statistics that can be easily disregarded or ignored, there are others that are truly eye-catching. Take staggering cliamed statistic, often cited on the internet, that 96 per cent of businesses fail within 10 years, for example, which really underlines the challenges facing entrepreneurs in an increasingly competitive marketplace, Zak Goldberg drills down.
While no business can ever be guaranteed to achieve success, it is those that adhere to the same, fundamental principles will give themselves the very best chance of success over time.
In this post, we will look at the three basics that can help you to launch a successful and ultimately sustainable venture.
- Ensure That You Have Enough Capital for Six Months
If you are struggling to achieve this, you may want to consider innovative loan models that minimise long-term debt within the business. Factoring offers a relevant case in point, as this essentially enables you to sell your accounts receivable once work has been completed.
This enables you to negate 60 or 90-day invoice terms and boost your cash flow from the outset, without sacrificing equity or taking on debilitating levels of debt.
- Understand Your Audience
More specifically, you need to marry your product to a clearly defined audience, which boast the desire, need and resources to buy into your concept. This process should start when you initially design and conceive your product, so that you are creating something that has been tailor-made for specific customer segments.
This will assist you in every stage of developing your business, while it will also help you to optimise revenue over time.
- Distinguish Between Strategic and Non-strategic Costs
One of the best ways to achieve this is to distinguish between strategic and non-strategic costs, as this will help you to minimise your spend while also determining how best to utilise your capital. Non-strategic costs refer to expenses that do not directly affect your product, such as basic operations and utilities. In contrast, strategic costs relate directly to the marketing and sale of your goods, and should generally benefit from a greater share of your budget and they drive a superior ROI.
Just remember to be accurate when determining costs, and ensure that you achieve the right balance between reducing expenditure and realising the full potential of your business.
Bio: Zak Goldberg is a Law & Business Graduate from the University of Leeds who has chosen to follow his aspirations of becoming a full-time published writer, offering his expertise on all areas of law and finance.