In 2019, the rate of failure of a startup was around 90%. In 2020, due to Corona, it would be much higher. As per research, about 21% of startups don’t see their second year. 30% don’t see their third year and by the 5th year 50% of startups fail.
Do you want to be in the other 50% that succeeds? Well then, make sure you implement the 5 tips we have mentioned below:
1. Make sure you have a marketing plan
Having a marketing plan is important. It will help you to ensure that your sales are higher than your expenses. This will make sure that your cash flow remains positive and your business succeeds.
2. Go Online
With the world your market, why stick to only Nigeria? If you have products and services that you can sell internationally, go for it. You can use WordPress to set up your site and then sell your products online.
In addition to more sales, you get higher revenue per item or service offered as you earn more due to the exchange rate difference. Make sure that your website is hosted near your target audience market though.
So if you want to cater to the Australian market, you can go for a UK based server. Read these web hosting reviews for the UK to know which one is the most appropriate for you.
3. Have enough cash
Cash is truly the king. This rings true when you have a business and are spending money on rent, electricity, employee salaries every month in addition to inventory.
If there is not enough cash, even if your business if profitable, you will have to close your business. To ensure that this is not a problem for you, make sure that you have double of what you estimate to spend as a buffer with you.
4. Go social
Getting traffic to your website via social platforms like Facebook, Instagram and YouTube will help you to get low-cost or no-cost sales.
It will also help you to increase brand visibility and boost your sales without spending a lot of money. If your business goes viral, you will get a tremendous amount of sales which will help you to grow your business.
One of the main reasons that Asian and African businesses are behind their U.S. and European counterparts is that they don’t use automation to solve business issues. You feel that if you can get a person to do the work cheaper, why waste money on software.
The advantage of using software to automate your business is that you can scale the business. Automation can help your business run 24/7 and reduce the possibility of human error.
There are many excellent free software products on the market too that you can use to leverage for your business. You can check a free software directory to find the best ones for your business.
As you can see, though starting a business is highly lucrative, there are many elements that go towards making it a success. If you can persevere and overcome the obstacles, you will succeed in becoming an wealthy entrepreneur.
*Josh Moore is the co-owner of Hosting Foundry