It is worth noting that over half of new small businesses usually fail in the first five years. This is mainly due to their inherent weaknesses. Entrepreneurs can however, boost the likelihood of success past this period by learning about their entity’s weaknesses and overcoming them.
Use the tips below to find and overcome small business weaknesses.
Analysis/Prepare a Business Plan
Businesses usually suffer from a variety of problems that mainly stem from their weaknesses. Small businesses usually have a variety of weaknesses that can cripple operations and lead to closure if left unattended. One of the best ways to find hidden business weaknesses and create a plan to overcome them is through analysis. Entrepreneurs should take the time to analyze the strengths and weaknesses of their business in order to discover and document them conclusively. This analysis can be done during the preparation of a business plan or independently.
Coming up with a list of the things that are wrong with your business is definitely a great step in ensuring its success; however it is vital that you also come up with the necessary remedies. After all you will need to solve each of the weaknesses in order to boost the entity’s chances of success.
You may discover that you have underperforming staff or fewer employees than is necessary; or lack enough production machinery to meet demand. These weaknesses should be addressed by first coming up with the necessary solutions.
Depending on what you discover, you will need:
In most cases, small businesses need additional financing to remedy their weaknesses. For instance, an enterprise that lacks enough staff will need to hire more employees, and with it more money to cover their wages. This is the same for enterprises that need more production assets among others.
Seeking additional finance where necessary is no easy task. You may need to look at external sources of cash including traditional lenders and government programmes meant to assist small businesses.
In some cases, small businesses usually suffer due to inadequate information about the market they are in among others. This means that they would benefit more from business advice and informational support services as opposed to funding. Where this is the case, entrepreneurs should look for advice from existing lenders, mentors or through government programmes.
You can approach various professionals including lawyers, accountants and bankers when seeking business advice to help eliminate/overcome various business weaknesses and push your small business further into success.