Maintaining a business requires analytical thinking, determined organization, and detailed record-keeping. This seems simple enough, but the truth is it takes a lot to make your dream business succeed. The Bureau of Labor Statistics reports that 65% of new companies in the United States fail within the first five years, while only 25% make it to 15 years or further (U.S. Bureau of Labor Statistics, 2019.) There could be several reasons for this, such as failing to create a viable business model, limited finances, building a solid and reliable team, and not identifying ways to stand out from the competitors. This strife won’t have been helped by the COVID-19 pandemic, which has dislocated the U.S. economy.
But let this motivate you. You can be part of the 25%, with our guide to business success in 2022.
1. Know your competition
It’s essential to be aware of your competition. Why? Because competition breeds the best results. Don’t be afraid to study businesses that inspire you or are your direct competitor. They could be doing everything right, and that’s something you can implement too – and make more money!
This process is called competitive assessment. To make an assessment, ask yourself questions such as:
- Which businesses do you regard as your competition?
- What can you learn from them?
- Who stands out as the industry leader? How did they do this?
- If they made mistakes, how can you learn from them?
- Did they do anything big or small that resulted in their
2. Get organized
Organizational skills make a massive difference in daily operations. Having easy access to information, documents and data is crucial and can’t be stressed enough. It is critical to store them in a safe place to avert potential chaotic situations down the road. This includes making sure everything is backed up digitally, especially your financial data.
Being organized also involves good financial housekeeping. Doing this at the beginning of each year can ensure everything will run as smoothly as it can. It also allows you to change your needs if needed, with maximum effectiveness across the next 12 months.
We recommend reviewing these six ket areas in your annual housekeeping:
- Online presence
- Vendors
- Equipment
- Staffing needs
- Insurance
- Retirement plans.
3. Make your HR management a priority
It is imperative to have A+ team players in the company. Productive, happy employees are one of the greatest keys to success, and part of that has an efficient HR department. Whether you have HR in-house or outsource the expertise, you will want to make sure all areas are covered: compliance with labor legislation, selective hiring, job security, and so on.
The COVID-19 pandemic has led to the creation of a hot hiring market, with staffing shortages putting job seekers in the driver’s seat, something the U.S. economy hasn’t seen in some time. Take advantage of this and adapt accordingly.
HR management is a complex world, but it doesn’t have to be overwhelming. There are great ways to access information, from articles to HR podcasts. In this digital world, education and help are simply a click away.
4. Customer service
We all know how important this is for business success, but not everyone gets it right! Providing good service to your customers is crucial to gaining their loyalty and retaining their business. One way to do that? Look after your employees – good customer service takes patience and people skills. If your staff feel valued, they are more likely to be happy and productive at work.
5. Treat your staff well
The previous point leads us nicely onto one of the most pressing keys to business success: treat your staff well. This is especially the case for small businesses, where staff need to manage their daily responsibilities with as little oversight as possible. This is because often, your role will include a myriad of duties, and nobody has time to micromanage. It’s therefore crucial you hire someone fit for the position; otherwise, you can waste precious time and resources. Just as importantly, no business can afford to lose a star employee. Build your team and treat them well. Listen to them and help them grow.
6. Think about your digital footprint
If you want to succeed in this modern age, you need an online and social media presence. If you don’t have one already, begin by creating your website. Your goal is to have a website that is easy to navigate, engaging, and tidy. If you have the budget, you can hire a professional to create a website for you. Otherwise, there are many web design tools available on the internet.
Equally important is being on social media because having a website alone isn’t enough. You won’t need to be on all of the platforms – the key is working out which ones you can reach your target audience on best – so educate yourself about Facebook, Instagram, Twitter, Snapchat, LinkedIn, Pinterest, YouTube, and TikTok, and which audiences they serve. If you’re unsure of how or where to start, some services can help set up your social media presence for a cost. You can also hire them to help you maintain that presence if that’s not your strong suit! Social media managers are a worthy investment if you’re serious about your company’s success. A social media team can determine your digital marketing strategy for reaching potential patrons and customers. Blogging, video blogging, and podcasts are just some of the ways to get your business name out there.
7. Don’t be afraid to take risks
You cannot take your business to the next level without taking calculated risks. No risk means no success; they’re part and parcel of running a successful business.
The critical point here is making sure all your decisions are created after carefully collecting and weighing all the information you can gather. And if your risk doesn’t pay off, don’t let it hold you back from trying again. It’s no coincidence that some of the most successful business people, such as Henry Ford, have also had some spectacular failures! Celebrate your successes and, most importantly, feel the pain of the mistakes and learn from them.
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