Entrepreneur Resources Your source for small business information
Your dream of opening a brick and mortar business is finally becoming a reality. Along with pride of ownership comes a slew of responsibility. Statistics show that a quarter of new businesses fail within the first year. To prevent your business from being another marketplace casualty the GKT Group has put together this handy list of tips.
Know Your Target Customer
You already know what you want to sell. But, have you spent any time analyzing the industry market to figure out who your best customer is? This is a task that many new business owners fail to do.
Every business has an ideal customer that can be targeted in marketing. The key is figuring out how to find them. Start by researching the immediate area surrounding your business. What types of offices and neighborhoods are located within a 5-mile radius?
People that live and work closest to a business are more likely to shop there. Network and join local business groups. Conduct an email survey of your existing customers and ask how you can serve them better. Focus groups and email surveys are great ways to understand which type of people and age groups show interest in your business. Once you have that information, you need to take it a step farther and research how to best reach your target market. If you are targeting a younger crowd, social medias and online marketing tactics might be the best avenue for you. But say your market consist of an old demographic. Will you run newspaper ads? Be aware of your options and what are the most cost effective routes for you and your business.
Work Out Logistics
Find affordable ways to package and deliver products and services. Customers usually want fast service, so do what you can to train employees to provide quick assistance. Make sure vendors in your supply chain can deliver on time.
Set Up Basic Financials
Open a business bank account. Set up an internal accounting system that is easy to manage. The system should handle basic accounting, budgeting and taxes. Always run the numbers to see how much cash on hand there is. Estimate how much you need to pay for costs such as employee wages, bonuses, marketing and promotion, rent and utilities, delivery and transportation, office supplies, general maintenance and other expenses.
Protect Your Business
Research business insurance plans and find the most affordable one that covers your specific needs best. Liability and property insurance offers good protection in cases of theft and unexpected damage.
Get Legal Advice
Read up on potential legal issues that may affect your business. Know all of the local, state and federal laws. There are important laws pertaining to employees, as well as, specific business regulations. Have a lawyer create legal contracts and documents.
The success of your new business depends on how well you navigate the ins and outs of managing all aspects of operation. The odds of your business successfully surviving during those critical early years.
Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do, she loves to learn about new topics. When she isn’t writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.
