Small businesses are essential to local communities and their economy. They represent culture, create jobs, diversify the market, build community, and their revenue gives back directly to their neighborhoods. It’s not easy to be a small business owner, and sadly, unprepared owners fail many times before they’re successful.
It doesn’t help that odds are stacked against entrepreneurs, but an often overlooked asset is working with a small business lawyer. From the start, a small business lawyer can get you organized, filed, and prepared for anything that may come including defending your business in a worst case scenario.
If you’re interested in starting a small business in Arizona, or already have an established business, do yourself a favor and take advantage of a small business lawyer in Phoenix. They have a ton of services to offer for every step of the way– not just bailing you out of trouble.
Common Reasons Why Small Business Fail
The grim truth is, about 20% of new businesses survive their first year, and only half of them make it to five years. There are a few common mistakes new business owners make, like not having enough start-up capital and overestimating sales and profit margins, but there are other important and preventable factors that contribute to successes and failures.
#1. No Business Plan.
A business plan is exactly what it sounds like, a plan for your business. You’d think that with starting something as important and costly as a business, everyone would start with a plan. However, one of the many reasons small businesses onlinebahisforum fail is because they failed to plan. All puns aside, it’s an extremely helpful tool that outlines your business and brings your great idea into reality. It also requires you to research your competitors which helps you know who you’re up against, how to stand out from the crowd, and what’s working in the market and what’s not. Lastly, it helps you get a realistic idea at what your first few years will look like financially so you can make sure to have enough funds to cover expected and unexpected circumstances.
#2. No Marketing Strategy.
So you have this great idea, you invested all your time in money to get it off the ground, and you finally open your doors– but no one knows you exist. Unfortunately, that’s a huge reality check for many small business owners. They focus songsindia too much on their retail front and products, and underestimate how crucial marketing is. Get to know who your target market is and find out the best way to reach them, your sales literally depend on it.
#3. Losing control of the finances.
Having an accurate understanding of how much money is coming in vs how much is going out, is the only way to stay in business. It can be difficult when you’re a business owner to manage all the essential tasks yourself, and if this one slips, it could put you in serious financial trouble. Many business owners recommend hiring a CPA or bookkeeper to make sure the finances are always being managed.
#4. Not Hiring or Retaining the Right People.
Your employees are the face of your business. Their skills and demeanor represent your company values and morals – it’s basically telesup how customers see you as a whole. They have the power to create a loyal customer base, or push people towards your competitors. Not only that, but training new employees is money out of your pocket and can cost you hundreds if not thousands of dollars. Having a high turnover rate also impacts productivity and really slows things down which again costs you valuable dollars.
#5. Not Adapting.
Covid taught us all a lot, including how important it is to adapt. The market is constantly changing in terms of what consumers want and news hunt how they want to get it. If you fail to keep up with the trends and changes in the market, you will not stay afloat. You have to stay ahead of the game, be innovative, and constantly keep tabs on the industry.
Increase Your Chances of Success With a Small Business Lawyer
Before you start any new venture, always consult with the experts. Talk to people in your field, get tips, tricks, and find out what works and what doesn’t. This also means including a Phoenix small business lawyer in your plans. They have a ton of valuable information and ways to support you and help you reach your goals.