Starting and running a successful business boils down to several factors.
Your business idea will, naturally, play a significant role in determining whether your company survives the first year. (If you think a great idea is all you need to build a bulletproof brand, consider that 20% of businesses fail within a year, and only 52% survive the five-year mark.) Your marketing strategies (and the effectiveness with which you follow them) will also help or deter you from reaching your goals. And there's always the element of luck.
But no matter how much thought you put into the act of starting your business, what will have the greatest impact on whether you profit or not will be your decision-making process.
If you want to start making better business decisions, here's the entrepreneur's guide for ensuring all your choices lead to wins.
Set SMART Goals
One of the best ways to guarantee your business decisions lead to favorable outcomes is to learn how to set SMART goals.
No matter what you want to achieve, ensure you don't under or overestimate your potential. And even more importantly, to succeed, you need to learn how to transform long-term goals into actionable steps to get you to where you want to be.
By learning about SMART goals (specific, measurable, achievable, relevant, and time-bound), you can create a roadmap toward reaching your business goals and ensure you stay on track.
Put Together a Winner Team
A team is only as strong as its weakest link. So, to make better business decisions as an entrepreneur, ensure you surround yourself with the best people.
Ideally, your employees should be great at what they do and have a passion for growth. Even more importantly, if you go through the process of selecting and training a new team member, ensure you have the wisdom to listen to their input and consider it when mapping out future steps.
Pay Attention to Your Cash Flow
Most entrepreneurs hate bookkeeping. But the truth is, having a solid grip on your finances helps prevent you from taking unnecessary risks or making outright bad decisions.
If you're in charge of your organization's finances, be diligent and detail-oriented. Or, if you're one of the lucky people who have the help of a professional, do your best to heed their advice to ensure your company's financial health.
Keep Updated on Industry News and Trends
There's no possible way to run a successful business if you don't keep up with industry news and trends - at least not in this fast-paced, competitive world.
So, if you want to guarantee you only make solid business decisions, make it your job as an entrepreneur to stay informed about everything that has to do with your business.
Sign up for a few newsletters for startup founders. Keep tabs on your target audience's wants and needs through social listening. And follow your competitors' business activities to ensure you don't fall behind in terms of product or service quality.
Prioritize Customer Experience
Today's consumers are very picky. And if you don't meet their expectations, you can bet your bottom dollar they'll switch brands.
In fact, data shows that 80% of buyers will change suppliers because of poor customer experience. So, if you want to retain your customers and build your business in the long term, you need to provide your clients with the perfect shopping experience.
Think about what unique benefits you can deliver to your audience. Go above and beyond with customer service. Lastly, don't forget to offer affordable (or better yet, free) shipping options and free returns. These usually rank high on people's list of purchase-influencing factors.
Measure Results and Adjust Strategies Accordingly
Last but not least, to make better business decisions as an entrepreneur, you must start measuring results. That way, you can adjust your strategies and activities and ensure you're doing everything you can to reach your goals.
Define the most relevant KPIs for your business. Find ways to analyze your results (even if you only use Google Analytics). And do your best to develop an agile approach to running your company that doesn't just rely on reacting to what's happening around you.
In Closing
Building and running a successful business is never easy. And if you've done it before, you know that entrepreneurial life comes with many challenges.
Nonetheless, you can still make the job (at least a little bit) more manageable - as long as you know how to make the best possible business decisions.
Following the steps outlined in this guide, you'll be on the right track. And, of course, don't forget to enrich your strategies with real-life data and your unique experience. That way, you'll set yourself up for great things.
This guest post was authored by Sarah Kaminski
Sarah Kaminski is a life enjoyer, positivity seeker, and a curiosity enthusiast. She is passionate about an eco-friendly lifestyle and adores her cats. She is an avid reader who loves to travel when time allows.
******
Ms. Career Girl strives to provide valuable insights you can use. To see more from our columnists and guest authors, check these out! Or subscribe to our weekly email featuring our latest articles. We're also present on Medium!
