Many entrepreneurs face severe challenges when looking to take their newly established startups off the ground. In most cases, they only need to avoid some of the crushing mistakes that only lead to failure.
Experts report a high failure rate among startups, some of which border on the surreal. Recent studies indicate that over 50 percent of the startup companies don’t make it to their third year of operation. While access to capital remains a big challenge, it isn’t the only factor that heralds failure, notes a provider of SME loans in Singapore.
A small business can begin with a successful launch. But some firms face severe money problems down the line that affect their products and services. This situation sometimes spells death for their company. Luckily, you can sidestep such issues through a few moves and join the ranks of successful companies.
Refine your marketing effort
You’re in business if you get people to buy your products and services. Otherwise, you’ll have a hard time meeting your financial obligations and staying afloat. Sales and marketing are at the heart of any successful business. Because of this, you need to refine your approach in these areas as well.
It is not enough that you only make profits through selling. A proper system not only helps you to grow your sales but offers excellent insights into your customer base. That way, you can refine your approach to suit the needs of the market and use the right marketing channels and mediums. For example, study your target market. What do they look for in a service or product provider? What qualities do they check when purchasing something? As you learn more about the demographics, you need to adjust your products and services offering to fill in any gaps you uncover along the way.
Safeguard your cash flow
Once you’ve gotten the word out and clients are lining up to buy your products and services, it is time to shore up your cash flow. See, a growing demand causes you to increase production, which is a cash-intensive venture. You’ll need to buy more supplies, manufacture more, and hire a higher number of people. Hence, you need to create payment terms to suit your growing demand for cash.
Choose the most convenient payment methods that suit both you and your clientele. Be sure to state the payment terms clearly. Avoid vague agreements, and don’t go into business with customers who insist on invoices with long grace periods. For example, you can start with 7-day invoices. This arrangement ensures that you have money coming in a few days that will help continue your business. Then, stick to your policies for some time until your cash flow stabilizes, and you’re sure that you won’t suffer any debts.
Growing a startup company and seeing it off to profitability doesn’t happen in an instant. Success in business takes a considerable amount of time and effort. Luckily, you, too, can join the rank of successful entrepreneurs if you choose the right and careful approach.