If a business is only going to last a couple of years before disappearing from the face of the Earth, then what use is it in the grand scheme of things? (Besides, businesses usually take at least that long to start turning a profit, so it definitely sounds more like a failed venture in such a scenario!) Heck, even a business that only lasts five years can’t exactly be called a success. While we’re at it, we may as well point out that ten years isn’t a great lifespan, either.
Really, your business needs to be in it for the long haul. And by ‘for the long haul’, what we really mean is ‘indefinitely’. Your business needs to have longevity. It’s this lack of focus on true longevity that causes so many businesses to fail in their nascent years. (Although, as that link points out, it’s worth remembering that people usually overstate the failure rate of new businesses.)
Make sure your company has the stamina it needs with these tips.
If you’re not that clued in about corporate law, then it doesn’t matter how well your run your business otherwise – it will probably end up in severe trouble at some point! A lot of businesses that seemed to be doing so well ended up falling at vital hurdles because they didn’t think to tackle important legal complexities until it was too late.
There are a lot of aspects of business law that you need to consider. Trademarks, taxes, health and safety, contracts, patents… this is really just naming the more obvious things, and we’re barely scratching the surface, here. Check out the top legal aspects you need to consider as a business.
Keep the cash flowing
A healthy cash flow is one of the most important things to have if you want to keep your business afloat for a long time. A lot of people get confused about this.
Having a good cash flow isn’t just about breaking even, or having great profits, or securing a market. It requires sharp concentration on everything to do with your business’s finances, from the large comings and outgoings to the minutiae that most business owners aren’t even aware of. You need to ensure you have a world-class bookkeeper. If there are cash flow problems, they need to know how and when to raise or lower prices, or visit a factoring company, or renegotiate contracts.
Dealing with doomsday
Being completely optimistic in the world of business is only going to get you so far. Most businesses fail because of an accretion of small errors by which they become slowly overwhelmed. But a lot of strong businesses have succumbed to sudden downturns in the market or within their own business. How does that happen? It happens because they weren’t prepared to deal with a disaster.
It’s a sadly common error among startups that do so well in their first year that they develop a fatal arrogance. It doesn’t matter how well you’re doing; you need to prepare yourself for the worst. Develop a disaster plan for your business so it can weather any storm and stay on course to success. There are always storms on the horizon; not preparing for them will kill your business.