According to a report released in October 2014 by commercial insurers RSA Group, more than half of new businesses do not survive their first five years.
A daunting prospect but with a range of obstacles, including lack of lending being a growth barrier, the figures are not surprising. That being said, are all small businesses doomed before they get their chance?
From retail to service-based industries, small businesses will naturally find it difficult to compete with industry giants.
Financial strain, growth issues and even employee issues will be amongst the many hurdles the small business owner will face but with the right support and by knowing just what to do, there is no reason why the small business cannot weather the storm.
The figures are dismal and can be very much off-putting - after-all if over half of small businesses fail to pass their first five years then what makes your business any different?
Defeat however isn’t necessarily a given, by dealing with the bumps in the road any small business stands a great chance of moving forward.
Want to keep your business moving forward? Then keep the following in mind...
Bing able to take on everything in-house is difficult for small businesses and as the manager your time is limited as it is. With that in mind consider outsourcing particular tasks to free up your time.
From marketing and social media management to payroll, invoicing and cash flow forecasting, the repetitive tasks that often require daily management can take up the most time.
Outsourcing to specialists is often the best solution. Not only does your business get an experienced professional who knows exactly what they are doing and how to manage any risks and issues, you free yourself from paying a large, regular salary.
With outsourcing, your business can obtain the level of support it needs to plough through.
Your employees are crucial to your business. Whether customer service advisors, salesmen or the website designer, it is important to be aware that each of your employees plays a vital role in your business.
A well-oiled team that is provided with regular support and care will be able to not only communicate well with each other but work well for your business.
From training to general care and attention, make your employees want to come and work for you.
The better the internal components of your business, the better chance there will be of growth.
One step at a time
For any small business it is important to ensure all goals and targets are realistic. You may naturally want to be as successful as an industry leader but success and growth doesn’t happen overnight.
Work closely with your teams to set targets on a monthly basis and work towards these with a long term goal in mind - whether that is to reach a financial target or otherwise.
It is important to know your limits and not take too many risks.
From growing your premises to hiring a dozen new staff members, before you begin be sure you ask yourself whether this is the right move to make.
It is understandable that in such a competitive environment, small businesses may struggle but predicting their immediate downfall before they have even begun is enough to stop even the most budding entrepreneur in their tracks.
Not all small businesses are destined to failure! With the right attitude and the right team, there are no reasons why your business cannot grow to new heights.