A small business offers a range of benefits to business owners, employees, and customers. Unfortunately, many businesses fail to make it to 15 years or more. According to the U.S. Bureau of Labor Statistics (BLS), which has been relatively consistent since the 1990s, approximately 20 percent of new businesses fail during the first two years of being open, 45 percent during the first five years, and 65 percent during the first ten years.
Although many small businesses risk failure, your company doesn’t have to be part of those statistics. Consider the following strategies to grow your small business over time.
Extend Value of Current Customers
Your customers are crucial to your company’s growth and success. However, that requires more than just acquiring new customers. It’s equally important to retain current customers. If you’ve already built credibility with your current customers, the chances are that they will continue to purchase your goods and services.
Look for ways to extend the value of current customers through promotions and premium discounts, referral programs, and top-notch customer service. When your current customers are happy with your products and services, they may refer you to their friends and family, automatically allowing you to acquire new customers.
Build a Winning Team
Your employees are the backbone of your company, and their interest in helping your business grow significantly impacts your company. You will find it challenging to grow your business if your team isn’t motivated to reach the same goal as you.
Put your employees first by acknowledging their needs and helping them grow. When your employees are motivated to grow, they will look for strategies to boost your business. If your employees feel overwhelmed by work or under compensated for the tasks they complete, they are unlikely to perform their best. Consider investing in employee development, as this can improve their performance, attract top talent to your company, increase employee engagement, and more.
Protect Your Cash Flow
Your business needs a positive cash flow to continue performing its best. If you make more money than you spend, your business is more likely to grow and expand. Some of the best ways to ensure that your business has a positive cash flow are adjusting your expenses and inventory levels, accelerating receivables collections, extending your payables schedule, and obtaining loans when required.
A key benefit of obtaining a short-term loan is that it allows you to maintain your cash flow without taking out funds from your profits or emergency savings. If you’re experiencing cash flow problems, consult a licensed online payday lender like GoDay for temporary relief. A quick loan can help you balance your cash flow and reduce the risk of a negative cash flow. Cash flow problems are often significant contributors to business failure.
Form Strategic Partnerships
Entering a strategic partnership with another business can help you expand your product and service reach while reaching a broader network. Choose a reputable company to form a partnership with, which can significantly increase your chances of growing your business. After you form a successful partnership, manage business relationships, and continue to invest in a positive relationship for long-term success.
Growing your small business can seem tedious, but the right strategies can bring you closer to your goals and allow you to expand your customer base.