Are You Aware Of The Dangers Threatening Your New Business?

By Business Desk

Friday, December 19, 2018.

If you’re in the early stages of your entrepreneurial journey, you may be aware of the spine-tingling statistics related to start-up survival rates. Although we live in an age that actively encourages aspiring moguls to take the plunge, there’s no getting away from the fact that the chances of success are slim. With 90 percent of new businesses failing, it pays to be aware of the risks and dangers you face as a start-up owner. If you know what you’re looking out for, this can help you plan more effectively, and hopefully, swerve any road blockages. Here are some of the most common threats your new business may encounter.

A lack of funding

It costs money to get even the smallest business off the ground, and the hard work doesn’t stop when you’ve found enough money to negotiate a launch. You need to cover the cost of getting the company up and running, but you also need to factor in the day to day operational costs and consider how you’re going to sustain your start-up. To steady the ship, you need to ensure that you have funds available and that you have plans in place to start making money as soon as possible. It’s common to experience losses in the first year, but securing funding could help you reduce your chances of failure. If you don’t have savings set aside, consider alternative options, such as taking out a business loan, borrowing from somebody you know or getting an investor or partner on board. Plan ahead, set targets, and keep a close eye on your cash flow.

Cybercrime

Did you know that experts estimate that cybercrime will cost the global economy $6 trillion per year by 2021? You may think that small businesses are immune to cybercrime threats and that multinational corporations are the prime targets, but small and medium-sized businesses lose out every single day. If you operate a website, you use computer systems, or you store sensitive data and personal information provided by clients or employees, it’s advisable to work with cyber security companies to protect your networks and keep your business safe. This kind of crime can affect anyone, and the impact can be devastating. It’s always wise to adopt the mantra that it’s better to be safe than sorry.

Competition

Success in business is all about beating the competition. You’re never going to find yourself in a marketplace where you’re the only seller or service provider. To beat the stats and make your business model work, you need to ensure that you can compete. If you can’t, customers will choose a rival. Pricing is often a priority for consumers, so make sure you offer value for money and keep an eye on what your competitors are doing. If they’re under-cutting you, this is likely to catch the eye of customers, and you may lose out. If you can’t compete on price, you’ll need to offer additional incentives. Could you provide next-day or same-day delivery? Does your product have extra features? Have you got 5-star reviews? Do you offer a bespoke service? Can you offer a free gift with every purchase?

If you’re on a mission to take your new business to the top, it pays to be aware of the obstacles that may stand in your way. Good luck!