Starting your own small company can be exciting for the budding entrepreneur, but it can also be scary and intimidating. You can have the best company idea in the world and execute poorly and end up killing your company before it ever has a chance. While many companies fail within the first five years, the highest percentage within the first year doesn’t have to be the same for you and your company.
Growing up, you can likely look back to your successes and failures and realize that the common thread to whether you were successful or failed was preparation. Entrepreneurs can’t just come up with a company idea and jump in the deep end without being prepared to swim. Besides writing a great company plan and lining up financing, here are five strategies for company success every entrepreneur needs to know.
Networking has been in existence since the beginning of time and is nothing new to the company world. While larger companies have staff dedicated to networking and partnerships, networking is up to you for the small company entrepreneur. You can start by joining every local small company group that makes sense for your company.
You can also use your social media to network with family and friends, and if you use hashtags, you can connect to others outside of your direct connections. Networking with all types of companies can be rewarding. You can be a source if other company owners need the products and service your company offers, or they may send referral companies from their customers that need what you offer through your company that they do not.
Your company could be an inventive idea no one else has come up with; however, it doesn’t need to be the next new thing to be profitable. Even if you decide to start a company that is in a saturated market, don’t let that discourage you if it is a company you have a passion for the company you want to start. The key, in this case, is to be unique within the market. Have a product or service in addition to the standards that no one else has and make it your focal point.
This is the time for you to be daring and inventive. There are no limits for the eager and forward-thinking entrepreneur, not afraid to stand out.
Every company should be highly aware of their competition. This understanding is not reserved for direct competition but also indirect competitors. To be the most competitive in your market, you should begin by recognizing your closest competitor almost as well as you know yourself. Study them, know their best practices and what works for them, and determine their weaknesses and development opportunities.
Knowing the competition can also lead to other networking opportunities. Competition doesn’t have to equal contention. There can be prospects to partner with to boost revenue and your customer base.
Take Care of Your Company Credit
All credit, whether personal or company, is important. While your personal credit score can prevent you from making large purchases or cost you in high-interest rates or loan denials, if it is negative, your company credit is even more critical to keep positive. Companies can have downturns, emergencies, or unforeseen circumstances that will require capital that may not be on hand. If you need a small company loan, it could be the difference between survival or total failure if your credit prevents financial assistance.
Always pay your accounts payables on time, early, or better yet, in full. Ensure that all company loans and credit cards are paid quickly and consider your company credit score one of the most important things for you to protect.
Many small companies make one vital mistake they shouldn’t be making and erroneously set their prices. There is a fine balance between overpricing and underpricing. Pricing is a lot easier than you might think. Some market and competitor pricing research and calculations on operations costs will ensure that your pricing will not only be competitive but keep your operations running.
Every entrepreneur has a lot to contemplate and plan for when starting your own company. Focusing on standing out, networking, knowing your competition, taking care of your company credit, and pricing will ensure your company not only succeeds but flourishes.
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