Take These Steps To Prevent Your Small Business Failure
If you are thinking for starting a small business for the first time, whether full time or as a side hustle, you will want to take baby steps, meaning that you should minimize your risk of losing time and money. It can be a scary and frustrating time, which is why many fledgling small business fail. Whilst you are learning the ropes, you should look for a business that will not require a large financial investment, and one where you can afford to fail. Every successful entrepreneur has ha d to learn the ropes of business, and most have failed at one time or another.
How you deal with that failure and the lessons that you learn from it will help determine your future success: “Failure is a prerequisite for great success. If you want to succeed faster, double your rate of failure” Brian Tracy, from his book Great Little Book on Universal Laws of Success . Brian Tracy has written over 70 books on success in life, business and self-development, but yet he still considers that the learning curve from failure is so important in attaining success in life and career.
Here is a reality check on the facts of small business life.
According to data from the U.S. Bureau of Labor Statistics, around 20 percent of small businesses fail within their first year. By the end of their fifth year, around 50 percent of small businesses fail.
It will be a tough time for anyone, let alone a busy dad to keep their life on track. Here are two ways to protect yourself against small business failure.
1. So the first tip that we can give you is to look after your physical and mental health, as a priority, even when you are busy ad under pressure. That is when depression and misjudgment of situations under pressure will occur. So we would recommend that you take steps to keep your life as balanced as possible and seek some guidance as to how to overcome depression with holistic wellness advice from the Modern Mystery School. If your mind is not functioning efficiently because of stress you are very likely to under-perform as a business owner.
2. Financial instability and failure to plan around unforeseen difficulties are common reasons for early small business collapses. Always expect the unexpected. It can really help your business and in these unpredictable times of tariffs on imported materials, you could easily find that price for your goods or services to a customer or client will not realize the profit that you thought were going to make. The job might become too expensive and you might not be able to deliver. Nearly 29% of small business failures are due to cash flow problems. In order to protect yourself and your client or customer, you could obtain a surety bond from https://bondsexpress.com/..
The advantage of a surety bond is that requires the surety (you) to pay a certain amount amount of money to the customer/client if whatever reason the surety (you) fail or are unable to carry out your obligations under the contract. It reassures customers/clients when they contract with you that they will receive the products or service that you promised to provide under a contract. This reassures everyone trading with you about your trustworthiness.
So say if you are shipping freight to a customer via and the goods via bciworldwide.com and they are lost at sea because of a hurricane, the surety bond will compensate your customer for the non-delivery. Having this type of protection could save your business from financial ruin, and help keep your valuable customer.
The complexity of running a business may deter you from taking the plunge, but do not be put off. The rewards are well worth the risk, provide you take a measured and carefully planned approach. You can build a valuable asset to give you and your family independence for generations to come. What are you best small business advice tips?