The journey towards success may not have been identical for entrepreneurs, but they can all share stories of business ups and downs.
In the world of business, startup founders and CEOs fear nothing more than the “valley of death.” It refers to the period of a lull during which the company is struggling to acquire new clients and trying to break even. Close to 80% of small businesses do not survive the first 18 months in the US.
Ups and downs are part of a business’s lifespan. To taste success, one has to experience multiple failures, and that has been the norm for startups and small businesses across the world for centuries.
Many aspects of doing business have changed, including the way brands communicate with potential buyers and the way founders acquire funding. However, little has changed in terms of the vulnerabilities most companies face during their initial phases.
Set up long-term targets
The only way to make the best of every situation is by planning ahead. Any small business needs to keep funds aside for a draught. In addition to keeping short-term targets, you need to set up long-term goals. Long-term goals demand long-term investment plans. Review your policies to stay on the right road during tumultuous times.
Assume responsibility pro-actively
“The responsibility of a small business owner does not end with founding a business and hiring employees,” says Jared Davis. According to his take on the ups and downs of entrepreneurship, to keep a startup or new business afloat, entrepreneurs need to shoulder several different responsibilities. From managing and overseeing daily operations to troubleshooting production delays. Business owners have to deal with significant challenges that determine the changes in the company’s survival in the long run.
Distribute capital and cash wisely
Before you can sit back and relax as the money begins to flow in, you need to think about paying the lenders back, covering the payroll of your employees, and paying taxes. Additionally, you need to think about smoothening the kinks in operations or production apart from considering the prospects of expansion. While it is indeed exhilarating to see one’s business thrive, you need to make way for future investments and save up for scaling up in the near future.
Keep investing in marketing
Don’t give up on marketing. Whether you are capitalizing SEO, SEM, or SMM, you need to invest more as your brand enjoys success. Send out a congratulatory word to your employees during times of joy. Reach out to your benefactors during times of turmoil. All in all, staying in touch and marketing wisely can open up new avenues of funding and profit for every small business.
Think about bootstrapping
You should consider bootstrapping only if you have the utmost confidence in your crew. Jared Davis believes that talking to a mentor or peer before decision making can help you weigh the pros and cons accurately. It is a great idea to cut corners, but unless you have sufficient resources to make you last during the dire times when no new leads are flowing in, it can mean the end of a legacy.
Ups and downs are part of every business, small or large. For smaller companies with limited capital and resources, the impacts of the down-times are often more significant as compared to larger corporations. Therefore, smaller businesses need to be more careful while managing their funds and planning their goals.