How to survive the first 5 years as an entrepreneur

How to survive the first 5 years as an entrepreneur

It is often said that 90% of the startups have the hard games only to be the failures. However, it is not because they are silly or unprepared. They did a lot of preparations and researches, and they created the detailed business plans just like you. It is because the business world is very severe and extremely difficult to survive. What should you do in order to be the 10% of the winners? Here, you can learn, from their mistakes, how to operate your business during the first five years.

To Begin With, Why Do Businesses Fail?

50% of the businesses close down within the first 5 years. This is very large number, isn’t it? All of those business failures have some patterns. By learning what to avoid, you will be able to protect your precious business from ding out.

Cannot pay the bills

The biggest reason of the failures is not to have enough money to keep paying the bills. The large companies usually have very steady cash flow. They took a long time to pay their bills; the average is four to six months. It is essential to know how to control your company’s cash flow like the large companies do. 

Offering the products that people are not willing to pay

The lack of the researches on the market needs always results in the failures. You need to consider extremely carefully about what kind of products you are going to offer and how much the price should be. What you want to create may not always be equal to what people want. Therefore, objective analysis on market needs is essential for the business success.

Adapt cost-inefficient marketing strategies

There are a lot of ways to promote your product, and its costs vary. Which medium is the best to promote your products to the targeted audience? Business failures often cannot find the best balance of the scale of the targeted audience and the advertisement cost.   

Not have skills to manage the team & company

Management directly affects the company’s success/ failure. Even if you have a great business idea, resources, and the work team, your business could easily fail without the reliable management source. Also, companies should make sure that they are operated by certain systems; not only by the “knowing-all” founder. 

Features Of Successful Companies

What 10% of successful entrepreneurs do? Just like the failures have some patterns, succeeded companies also have the patterns. 

Product fits the market needs perfectly

As mentioned above, it is essential to ensure that you are producing something that people are willing to pay for. No matter how greatly the business is operated, there will be no success if nobody wants to purchase your product. Successful companies are constantly offering the products that are right on point for the targeted customers.

Pay attention to everything

Successful companies never neglect or ignore anything brought up as an issue during the business process. It is because they know that “boring stuff” could be the key aspect of the business.

Have a strong team

In starting up a company, versatile work team is necessary. If your team has the great skillset and mindset, you are very likely to survive your first five years. Startups always have a lot of challenges; constantly make changes, adjust to the market, analyze the situations, and adapt something new. It cannot be handled only by the one-man competence. Also, a data shows that the startups with co-founder have the higher rate of surviving compared to the solo founder’s businesses.

Make the business grow fast

You may think that it is unavoidable for many companies to lose their money during the first two years; because that’s the hardest period of time in starting up the business. But it does not mean that you have to lose money too. Growing fast is not a unrealistic thing to achieve. If your company grows fast, you do not have to worry about running out of cash, which is the second biggest reason of business failures. In addition, it is much earlier for them to find the good investors because we all like the immediate profits.

5 Tips To Survive The First 5 years

What specifically should you do to avoid the business failure? What do you need to be a successful business owner? Here are the 5 tips that you can practice for your company.

1. Make commitment

Make a commitment to yourself that you are going to stay in this business for at least the next five years. And also what to achieve during this period of time. The strong will is important and has a great effect on your business growth, maybe more than you expect.

2. Take notice of long-term success

Always think ahead, and do not be swayed by the thought of a quick profit. If you have a solid long-term business plan, and follow it faithfully, your company will bloom soon. It may sounds conflicted about the fast-growing companies mentioned earlier. Growing fast is still possible for the companies, however, only if you do not sacrifice the future profits for a momentary gain. 

3. Build the good credit

Good credit is necessary for the leasing and other business transactions. However, you don’t need to worry about showing some losses at the beginning. It is unavoidable for many companies to have deficit when they just started operating their business. As long as your company is growing steadily, you will be able to establish the good credit for your company. 

4. Plan for success, but not failure

Do not take it wrong. It does not mean you don’t need the exiting strategies; All companies should know what to do in case of closing down their businesses. However, in terms of the business plan, you should build it based on the vision of yourself being successful.

5. Know when to make changes

As you are doing business, you will face to the time when you need to make changes; on your product, branding, or business plan. Listen to the customers and the market, and know when and what to change. The proper shift in the business can give your company the opportunity to enlarge the business scale and increase the profits.


How working outside of office benefits your company

How working outside of office benefits your company

Many people dream of working from home, but most of them actually do not get to do so. However, going to office every day may no longer be a best style of work. As the technology has been developed, working outside of office became much more realistic and beneficial. Check the benefits of working from home in this article, and it may change your fixed idea about not being at office.

Employees’ Voice

Are employees actually wanting to work outside of their office? Yes they are. According to the survey conducted of more than 500 professionals across companies,

  • Almost 90% of people want to work outside of office at least 1 day/ week.
  • 77.5% believe that flexibility can make them more productive on work.

Not surprising that some employees prefer working from home to getting paid more. It could be a great solution for your business to let employees work from home, at least once a week, in order to increase the employees’ working motivation.

5  Reasons Why Employees Should Work From Home   

There are various benefits of working outside of office proven by the researches. If the followings benefit your company, you should seriously consider letting employees work from home.

Improve creativity

Environment is very important for employees, especially those who are required the creative ideas on their work. Offices may not be the best place for the workers to think outside of box since it’s often flat and makes people miserable to be at. Working outside of office stimulates people in many ways, and help them to be more creative; because the feeling that company is controlling them will discourage themselves to come up with creative problem solving or ideas.

Much easier for employees

If you can work from home, you are no longer stressed out by the morning traffic, or uncomfortable work attires. Working from home might have been difficult a decades ago indeed. Thanks to the development of technology, however, it is much easier and costs much less today. Especially, the VoIP service has been dramatically improved; you are now able to make calls or teleconference from anywhere with very cheap price. Also, VoIP can answer employees’ needs in terms of the devices as well; more than 75% of professionals said that they’d prefer smartphone to desk phone for the business calls. Adopting cloud-based phone service could be a smart move if you’re considering the work-from-home work plan.

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More productivity

Stanford University reported its research result showing that working from home could improve the productivity by 13%. Comparing to the office, home (or anywhere the employee prefers) has much less stress. It can constantly refresh the employee’s brain and mind, and also help them to stay energetic. In addition, the employees will less likely to take sick days off or vacations. Going to the office when feeling sick is terrible, but it is not too bad if he/ she can stay at home. Or staying away from office will less likely to make employees feel that they need vacations. It is all because that they can take a burden off their minds by not being at office.

Stress management

62% of employees feel that their work is stressful, while only 11% thinks that their work-related stress is low. Managing stress from job is necessary not only for employees’ well beings but also for the better job performances. Do you know 5 most common factors stressing the employees?

          1. Unpredictability
          2. Workplace environment
          3. Deadline
          4. Safety of others
          5. The length of workday/ week

By letting your employees work from home, you can get rid of two stressors out of five for them; workplace environment and safety of others. Besides those five factors, interruptions by others is often listed as a stressful components of work. It can be eliminated by working outside of office as well.

Save money

This is simple but if the employees work from home, you, as a business owner, can save money spent on office utilities and supplies.

Alternative Ideas…

Despite of these benefits, not all companies are able to let their employees work from home. Some businesses may require face-to-face meetings every day. If your company is one of them, here is two alternative ideas that can improve the working environment and employees’ motivation.

Meeting at cafe/ rooftop 

One of the easiest ways is to host the meeting outside of the office, such as cafe/ park nearby the office or the rooftop of the company building. Amit Bendov, CEO of SiSense, says that “It’s a great way to get people away from their computer screens. And it provides employees with a safe environment to bring up concerns, a positive atmosphere to brainstorm.” It will have the same effect as working from home in terms of creativity, productivity, and stress management. The employees can appreciate the fresh air without actually taking break from work.

Invest a little money in adding nature to office

If it’s difficult to go outside during the work, spend some money to put the plants in the office. Surrounding yourself with the greens, or have a view of the green spaces, like park or tree, will help you to reduce your stress. Green can improve your mental function, and has similar effect as actually going outside of office at some degree.

Working outside of office will bring the positive results in a number of ways. Especially helpful to support the employees mentally, and as a result, to improve their job performance. Analyze the features of your business to see if it works for your company. Staying away from the office at least once a weekdays may be the best solution to improve your company’s performance.

Working from home started to sound a good idea to you? Check out how VoIP can make it happens…

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