11 Ways To Beat The Odds As New Contracting Business
Surviving The First 5 Years
The reality about the statistics concerning survival rates for small General Contracting businesses can be rather grim, while some of these stats may be up for debate. The majoraty of the figures point to half of all the business going under in the first year and 95% will fail within the first five years according to a study done by the Small Business Administration
There is a common denominators involved with businesses going under are due to cash-flow crises, under capitalization and over expansion followed by a slew of unimaginable external factors that nobody can plan for.
Tips from successful Contractors that have grown their small businesses and beat the odds.
- Recognized the importance and setting boundaries between your private life and your business life, a line that can often blur when you own your own business.
- Save and Reinvests profits to keep her business in good shape.
- It's important not to cross the line and take money meant for the business and make it your personal income.
- A new small business that is customer service-based should recognize the importance of creating and deepening ties within the local community.
- You don't have to set complex goals. Depending on your industry or niche, always strive to increase your client base month to month / year to year.
- Odds are, you're probably gonna get it wrong if it's your first time, don't overspend with work space and personnel, don't jump into a pair of shoes you cant walk in yet.
- Realize that owning your own business is as much a huge amount of work as it is joy. If going into business was easy, everybody would do it.
- Hire people that are better than you and make sure those hires get in the habit of hiring people that are better than them.
- Competitive edge doesn’t come from fighting competitors but from exploiting un-tapped opportunities for growing your business.
- High growth rates depend on your ability to offer innovative value to customers and the marketplace.
- Develop a marketing strategy or find someone to help with getting in front of the people that need your product or service, Invest in marketing.