According to a statistic by the U.S. Bureau of Labor, more than 18% of new businesses fail during their first two years of operation, and about 55 percent of all businesses do not survive past their fifth year. So how do you successfully launch and run your business?

1. Taking the Time to Plan

A frequent issue in start-up businesses is diving straight into opening the business. However, taking the time to plan will help to ensure that your business starts on the right foot. Taking the time to do your research and due diligence can give you a great foundation for success when opening your business’ doors.

Before starting a business, it is a good idea to:

  • Do market research
  • Create a business plan
  • File for the proper legal structure
  • Buy the right type of business insurance

Furthermore, all start-up businesses should map out a business plan that includes: how much it costs to operate, an estimated revenue, and who would buy the product- or service- and why.

2. Finding Trustworthy Advisors

Another big mistake which entrepreneurs make is thinking that they are able to do everything on their own by not surrounding themselves with wise counsel. It is crucial to find and onboard trustworthy advisors who will discuss business ideas, strategies, challenges, and progress.

Five recommended consultative services include:

  • A banking relationship
  • A legal relationship
  • An accounting relationship
  • An insurance relationship
  • An individual who will be your advocate and consultant

3. Forming Contracts

Relying only on verbal or handshake agreements is one of the most common business mistakes and is a predictable source of legal problems.

If you would like your business to run smoothly, it is important that you create a clear, professionally written contract with all your:

  • Employers
  • Vendors
  • Investors
  • Employees

Moreover, contracts help to protect all parties involved in the agreement; so, do not feel reluctant to ask for things to be put in writing.

4. Marketing and Advertising

There is only so much that a business can accomplish by word-of-mouth. Business Owners can lose out on potential customers and revenue if they do not have a marketing plan or advertise their company.

When it comes to marketing for businesses, a great place to start is social media. You can create a business profile on different platforms and use them to promote your business. Content can consist of posts such as a behind-the-scenes look at running the business or offering giveaways and promotions. Social media is an easy way to broaden your network of customers.

In addition, make sure that you are familiar with the federal regulations that are related to marketing and advertising. For instance, you could violate a Federal Trade Commission (FTC) regulation if you unintentionally send out a newsletter to someone who requested to opt out of the mailing list.

Creating a thorough business plan, having the right advisors on your team, being strategic about hiring, and advertising your business are some of the important steps towards successfully running a business.

Sources:

https://www.bls.gov/bdm/us_age_naics_00_table7.txt

https://www.businessnewsdaily.com/7398-startup-mistakes-to-avoid.html

https://www.thehartford.com/business-insurance/strategy/small-business-mistakes/common-mistakes