
For anyone wanting to start a business in 2025, it’s important to know the cold hard facts. In the USA alone, 20 percent of new businesses fail in the first two years, and that figure increases to 65 percent in the first ten years. With those numbers to contend with, how can you ensure your business has the best chance at making it through?
Even though the figures are frightening, there are some plans you can put in place to try to stack the odds in your favor. By focusing on key areas such as market research and marketing, you can give your enterprise a better chance of survival.
Detailed Market Research Lays the Framework
Starting a business without doing thorough market research first is like firing a bow and arrow while wearing a blindfold. Sure, there’s a chance that you’ll hit the target if you’re lucky, but there’s a much greater chance that you’ll miss. The greatest companies in the world have reached the highest levels thanks to a complete understanding of their target audience, and this enables them to refine their products and services accordingly.
Before you even think about logos and web pages, you should conduct market research to identify who your ideal customers are. According to the legendary management consultant and author, Peter Drucker, “The aim of marketing is to know and understand the customer so well, the product or service sells itself.” That means that the market research stage is crucial, and it sets up the business for the marketing stage.
Businesses should also aim to continue learning about their customers once the business is up and running. As Bill Gates wisely said, “Your most unhappy customers are your greatest source of learning.” Listening to the gripes of people who may have been disheartened by their experience with a business allows the business owner to fix mistakes and improve their offering for future customers. This can also help win back those disgruntled individuals, who feel like their issues have been directly addressed.
There are countless ways to conduct market research and gather data about the business’s target audience, and it’s a good idea to use as many of these as possible. These can include methods such as surveys, focus groups, and analysis of competitors within the same industry. Some of the best brands in the world have conducted detailed research on their competition and bettered their offering, with Facebook’s dethroning of MySpace, and Apple’s obliteration of Blackberry offering two excellent recent examples.
Establish the Fundamentals Before Launch
There are varying startup costs depending on which industry you’re getting into, and these come with diverse levels of risk. For instance, restaurants can cost around $375,000 on average, whereas retail stores have an average startup cost of $39,000 according to recent figures. Online businesses typically cost less than brick-and-mortar locations, meaning that they pose less risk to business owners who open them.
While it’s prudent not to invest too much into a business before it starts generating income, there are a few fundamentals that you should put in place before launch. These are true regardless of the industry you plan to enter. For instance, a business should be ready to handle payments, and there should also be the correct legal considerations in place.
A business bank account is essential to handle payments from customers, so setting one up initially is vital. The latest business accounts for banking are different to regular accounts as they are specialized in banking for businesses, including features catered to young entrepreneurs, young businesses, and those looking to trade internationally. They often come with invoicing tools and multiple-user access, making it easier for businesses to operate.
Depending on the industry you’re aiming to break into, you may need to register the business to comply with local laws. Conduct thorough research to find out if you need to be registered and investigate insurance deals that can mitigate against unforeseen challenges.
Marketing Strategies are Critical
Despite almost every industry being more saturated than ever before, modern businesses have the tools for success at their disposal if they use them correctly. Ensuring that marketing is done as effectively as possible is one of the best ways to get a business off the ground. Digital marketing allows for more targeted advertising than ever before, which is why the sector is projected to grow to more than $1 trillion by 2030.
The reason for this incredible growth is that online marketing is constantly evolving and integrating new technology. Google and Facebook have led the way with digital marketing over the last decade, allowing businesses to refine their campaigns so that they only appear to ideal clients. This is just the tip of the iceberg, though, and it’s expected that artificial intelligence will play an even greater role over the next few years. This will help companies zone in on their target audience with even greater laser focus, meaning that clicks on adverts are more likely to lead to conversions.
Marketing isn’t just about advertising campaigns. It also comes down to the brand identity, which customers need to be able to connect with instantly. The best companies in the world are immediately recognizable and convey their core values throughout all their content.
As just one example, Starbucks has become synonymous with sustainability, constantly reminding customers that it sources its beans from quality suppliers around the world. Business owners need to put careful thought into everything from the logo to the blog posts on the website, to ensure that everyone is clear on what their company stands for.
Retain Old Customers and Attract New Ones
The figures mentioned earlier about more businesses failing after a few years than in their early days paints a telling picture. It highlights the fact that, even if you manage to get a lot of customers to start with, you can’t get complacent and take your foot off the gas. Businesses need to constantly work to retain existing customers and attract new ones at the same time.
One of the best ways to keep customers coming back is to offer a reward scheme. 83 percent of consumers said that joining a loyalty program influenced them to return to a brand, and studies show that members of loyalty programs generate up to 18 percent more revenue growth per year than non-members.
Another way to provide an incentive to existing customers is to offer them referral rewards if they manage to get a friend to join. Uber and PayPal are two excellent examples of companies that provide excellent rewards to new and old customers when they sign up in this way.
A successful business is like a well-oiled machine with numerous parts moving and working in unison. If you manage to address all the key areas and continue to refine them, there’s a strong chance that your business can succeed for many years. It’s crucial to never get too comfortable, and to always look for ways to improve.
Source: Baddie Hub