We’ve all heard the doom and gloom: according to Bloomberg, 8 in 10 entrepreneurs fail within the first 18 months. That’s an 80% failure rate! How can you ensure that your own small business isn’t just another statistic?
When you break down why it is that so many business fail so quickly, the most common answer given is lack of funding. Most business owners will need to create a detailed business plan in order to qualify for a loan. In that plan, you should have a good idea of yearly operating costs and budget, all of which should assume that you won’t be making a profit for at least the first year. Many business giants today, like Amazon, took years to be profitable. Raise enough funds to carry you through while you are establishing your business in the market.
Plan for the Worst
We all hope for the very best when it comes to our businesses (and just our futures in general). But sometimes being a pessimist can pay off. Plan for potential roadblocks: cash flow issues, manufacturer delays, shipping mix-ups, and always expect every project to cost 20% more and take 20% longer than estimated. If you are always planning ahead, you will have a backup plan ready for whatever comes your way. During tough times when other business may be scrambling, you’ll come out ahead of the pack.
Partner with the Best
Every business has its highs and lows. You should always be prepared to ramp up your production if the market calls for it. Partner with vendors with a good reputation in your industry who can be counted on when it really matters. While costs and efficiency are always a consideration in choosing a partner or vendor, reliability and integrity can be equally important, especially long term. Fulfillment organizations like Ohio Valley Goodwill Industries have over a hundred years of experience behind them, all ready to work for you.
If you’re looking for ways to improve your business’s chance of success, contact us at Ohio Valley Goodwill Industries. We have been helping small business owners like you thrive in this region for decades, with access to affordable shipping, packaging, assembly, and fulfillment services tailored for their budget and task. Ask for a free tour of our facilities!