According to The Small Business Association (SBA), only half of small start-up businesses in the US make it past the first five years of trading, making it a very challenging time for business owners. If you take the following steps however, you stand every chance of success and profitability during this testing period. <\/p>\n\n\n\n
Take a business\neducation course<\/strong><\/p>\n\n\n\n Those who have some form of business education such as an MBA from Hult International Business School when they first start a business generally have a greater awareness of business priorities and how to attract investment. By taking a business degree, you will learn the following skills that will ensure the greatest chances of producing revenue. <\/p>\n\n\n\n Communication: <\/strong>On\na business degree course you will master how to communicate your unique selling\npoint to different audiences. You will focus on different types of marketing\ncampaigns and how they affect consumer behaviour and response. During your\ncourse you will also learn how to present and give effective business\npresentations, lead meetings and draw up important business documents in a\nclear and concise manner. <\/p>\n\n\n\n Consumer\nsales: <\/strong>You will need a good understanding of this to enhance your\nbusiness’ profitability. A business degree will enable you to investigate and\nlearn different effective sales techniques that ideally suit the product or\nservice you are selling. You’ll also have a clearer concept of how to gain\npotential leads, boosting your chances of making sales. <\/p>\n\n\n\n Financing: <\/strong>If your business is going to clear the five-year hurdle, you’ll need to master how to use your financial resources carefully to ensure that your accounts stay in a healthy shape. Being cost-effective will ensure that you stay on track with your financial projections. <\/p>\n\n\n\n Additional knowledge: <\/strong>There\nwill be other subjects that you may not have learned had you started your\nbusiness without taking a business education course. Examples include\ninternational business and global trade issues, how to be an entrepreneur, and\nmarketing. Taking a business degree will give you a clear insight into how to\nset up your business from scratch and plan ahead for the future as it develops.\nIt will also give you the opportunity to establish a strong network of business\ncontacts that you might not have gained otherwise. <\/p>\n\n\n\n Carefully assess your\nmarket<\/strong><\/p>\n\n\n\n Some\nentrepreneurs mistakenly think that customers will just go out and buy their\nproducts as soon as they are available on the market. Unfortunately, this isn’t\nalways the case, and consumers become hard to win over. To avoid making this\nmistake, conduct thorough research of the market you intend to go into with\nyour business. Create a product that has consumer demand, and validate your\nidea by investigating whether people will buy it. Conduct surveys and create\nresearch focus groups, use crowdfunding methods of finance and find investors\nfor your new business before you make that all-important product and begin\nselling it. <\/p>\n\n\n\n Another mistake made by\nentrepreneurs is trying to continually oust the competition within the market\nthey are aiming to trade. Realistically, competition in business is a good\nthing, and the act of successfully removing competitors is a rare occurrence.\nTo make your small business more profitable in a competitive market, find ways\nto work with your competitors to increase your own brand awareness. Make\nfriends rather than enemies within your sector. Stay focused on improving\ncustomer experience at all times rather than stealing customers from\ncompetitors \u2013 this will ensure that you stay focused and productive with a\ngreater chance of success. <\/p>\n\n\n\n Be realistic on pricing<\/strong><\/p>\n\n\n\n Consumers\nare very sensitive to pricing. Understand the nature of what customers want\nfrom a product. Some cheaper items may be favorable, but will the quality be\nseen as lacking? Will a luxury item with a hefty price tag put consumers off if\nit’s a brand they hardly know? Or will your company create the next new luxury\nmust-have that people are very eager to buy? In order to keep your small\nbusiness profitable, you will need to charge a price that feels like good\nvalue, whilst covering your costs and allowing a little extra to invest in\nadditional development, customer experience and future market research. Getting\nthis balancing act right is one of the most crucial routes to keeping your\nsmall business afloat. <\/p>\n\n\n\n