from Business Administration Information
by MEGHAN FORD
Starting a business is not something you do on a whim. While 75% of small-business owners say they are confident in their business, 70% of all small businesses fail by their 10th year, according to InsuranceQuotes’ “Why Do Businesses Fail?” infographic. Top reasons include cash flow problems, no market need, not having the right employees and being outcompeted.
Risk is inherent in starting any business venture, but there are ways you can reduce risk and increase your chances of success.
Determine the Need
Sure, your passion is there. But is there a need in the market for your product or service idea? If there’s an abundance of competition in the industry or a lack of interest in your niche, you should reconsider your business plan. Just because you love it, doesn’t mean it will be successful. According to Time’s “3 Ways to Figure Out If There’s a Market for Your Business Idea,” conduct market research before you dive in – delve into recent research reports published within the industry or conduct your own surveys. In fact, another piece of Time’s advice is to ask existing or potential clients if they’d be interested in your product or service. There’s nothing like hearing it straight from the horse’s mouth. Lastly, seek out an expert. If you have a mentor or investor (especially one familiar with the space) you can brainstorm with, this may help you determine market needs and how your offerings can fulfill them.
Know Your Lenders