The small business economy plays a vital role in the greater society of the United States. Millions of new business owners begin their companies each year, hoping to develop long-term success for their brands. Part of the beauty of the American Dream is that anyone can be successful with a business idea if they have the right tools in place and plenty of ambition.
Perhaps you are in charge of a young business, or you hope to start a new company in the next few years. Only about 50% of small businesses make it to the five-year mark, so it is not easy to find success. Even if you have a great idea and a business degree, there are so many factors that can affect whether your company makes it or not.
One thing that you can do to put the brand in the best position is to build it the right way. Obviously, every business is going to be different, so there is no one-size-fits-all formula for success. However, there are some ingredients that most businesses need if they want to make it beyond that fifth anniversary. Here are a few tips to build your company the right way.
Find Investors Who Believe in Your Vision
Outside investment is often a necessary step for funding startups. Perhaps you are having trouble securing a small business loan from the government or your startup costs are greater than you expected. In many cases, entrepreneurs will look for individual investors or investment firms to help cover those initial expenses before revenue catches up. However, finding investors who believe in your vision is key, especially if you want them to stick around. As you search for firms or individuals to pitch, keep the concept of impact investing at the front of your mind. Is there a firm that specializes in tech startups or businesses that care about sustainability? The more an investor aligns with your vision, the more backing they may be willing to provide.
Create a Strong Business Plan
Convincing investors to join you is difficult enough, but having a great business plan can strengthen your case. A formal business plan is a document that details the structure, goals, finances, and product of your company. Sections of a business plan include the executive summary, product details, marketing plans, financial projections, and supporting documents. When you have this type of official document to reflect on, it can keep your team on the same page. It is also valuable when making pitches to investors as it demonstrates how much thought and planning you have put into the future of your company.
Foster a Positive Employee Culture
Every business depends on its most valuable resource to succeed; people. If the people at your company are unhappy or uncertain about their role, they are unlikely to be productive. This could lead to a high turnover rate that makes it impossible for the organization to gain momentum. Fostering a great internal culture is part of building a company the right way. An employee incentive program that involves more than just money can build trust within your team and encourage innovation. Frequent team bonding activities can improve collaboration and chemistry among the employees. A feedback system ensures that managers are held accountable for how they treat their employees. These practices all contribute to a healthier culture that increases productivity and makes people want to work for the company.
Choose the Right Tech
If your company is not embracing online business tools in 2024, then there is no way for us to help you. Business technology is crucial if you want to remain competitive, and that means adopting the right tools for your goals. A communication platform that can integrate with project management software might be exactly what your team needs. An accounting program can lessen the burden on your CFO or accounting team so they can focus on other important tasks. A customer relationship manager tool will keep your sales, marketing, and customer service teams in constant communication and able to use the same data for their decisions. Every business needs the right online tools to be successful in this era.
The Decisions You Make Now Will Have a Lasting Impact
A company that is always having to change its ways can be chaotic. This unstable situation often leads to poor employee morale and a lot of confusion. However, if you cast a vision early on for how you want the business to operate, it gives you a focal point for all major decisions going forward. Prioritizing a positive culture now makes it easier to maintain that for five, ten, or even twenty years. Taking the time to write a business plan in the first few years will give you a guiding light for the next five. Build your new business the right way today so that you have a clear path forward and can make it past that five-year mark.
