Are you making critical mistakes that may financially ruin your company? According to Forbes, 8 out of 10 start up businesses will close within the first 18 months. Simply put, the odds are not in your favor. Financial hardships are going to happen, and the future of your business depends on your ability to carefully manage and/or power through them. What is the best way to do that? Reassessing three essentials may help turn things around.
Leadership and Employee Morale
“When employee morale is high, productivity rises. When employee morale is low, it’s hard to retain the best and brightest workers,” CEO Morgan Norman tells Business Insider. Retaining dedicated employees is especially important for new businesses. (Hiring and training new employees costs a great deal more than retaining experienced workers.) Thanks to economic struggles, today’s employers are increasingly likely to demand more from employees for equal pay. Keep in mind that this is likely to have devastating effects on employee morale. Motivate employees by encouraging progress, acknowledging and rewarding achievements, and offering incentives (when possible).
Consumer Value
New entrepreneurs often underestimate the value of a dedicated, returning customer. Dedicated customers largely sustain new businesses. They provide reliable income and typically refer others to your products and/or services. Forbes puts it plainly, “Your customer holds the key to your success deep in their pain, behavior, dreams, values and the jobs they are trying to accomplish.”
Financial Strategies
It is not uncommon for small businesses to reevaluate expenses. Find an accountant for small business funding and expenses management. Good accountants can come up with unique — and viable — alternatives if a particular strategy does not work. Accountants for small businesses are typically familiar with new entrepreneurs’ struggles.
Breathe new life into your struggling business. Carefully reassess leadership and employee morale, work hard to keep customers, and follow basic accounting tips (e.g. find an accountant for small businesses!). More on this topic.