As the economy continues to face serious challenges and uncertainties, you may actually be curious as to whether it’s a smart idea to start a small business right now. As long as you are wise and strategic in your planning, you can maximize your chance of succeeding. It’s true that 40 percent of small businesses are profitable and 30 percent break even, but a full 30 percent of small businesses are continuously losing money. Half of all small businesses fail within the first year, and there is only a nine percent chance that a small business will survive 10 years.
Independent restaurants and retail stores tend to be among the most high risk businesses. When it comes to restaurants, owners are often very skilled at their craft—but not always so much at business management. Retail stores often fail because of fierce competition in the industry. Restaurant and retail store owners require access to a significant amount of capital and marketing sources.
So how can you succeed with a small businesses? The key is to start small—a common downfall is tying up too much cash in overhead at the beginning. It’s also crucial that you fully understand your market before opening your doors. You should learn as much as you possibly can about your target demographic and its purchasing habits. Also, always listen to your customers and have clearly defined company goals.
To learn more about how to succeed with a small business, check out the infographic below presented by top-business-degrees.net.
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