ONS statistics, approximately 80% of British companies fail within their first year, and a whopping 42% of these fail within the first 6 months of existence. Failure can occur for a variety of reasons. Many small businesses can attribute failure to the harsh pandemic conditions in a post-pandemic economy.
Yet, other reasons play a significant role in the future of the business. Running out of money is the most commonly cited cause of failure when it comes to small businesses and startups. But another issue is often overlooked by small businesses, and that’s the lack of preparation for growth challenges.
Digital safety is a no brainer
SMEs are the most frequently targeted victims of hackers and scammers. It’s no surprise that over 73% of businesses were targeted in 2021 by cyberattacks, and the majority of those were small businesses. Indeed, small businesses often lack digital security, making them an easy target for criminals.
For larger companies, ransomware or phishing attacks may be a setback. However, when you run a small company with a tight budget, it could mean having to close down. So when do small businesses become a target? The answer is: When their digital activities become noticeable, in other words, growing makes them a target to hackers.
Clean books and strategy
Who is going to check your strategic data apart from your accountant? It turns out that more and more businesses fail to secure investments from equity investors because they didn’t convey clear information. Indeed, investors tend to rely on a public equity research platform to evaluate companies and understand their market and positioning. Consequently, decisions and strategies made in the past can still be part of the evaluation process. If the evaluation finds conflicting information or inaccurate data, it could affect their choices to invest in the company.
You Need to Keep Organised
In general, this is one thing that you absolutely need to do! Even if you’re running a pretty small business, such as you being literally the only person (or even freelancing), you still need to make sure that absolutely everything is perfectly organised! That especially includes those critical documents, but with that said, it’s honestly up to you and what works best for you, but make sure that however you do it, it’s not a cluttered or chaotic mess. If your business is going to grow, then you absolutely need to think about this!
Opting for in-house processes at all times
The first and most important lesson that every small business must learn is that they are not big enough to do everything themselves. It may appear cheaper to keep all processes and operations in-house, but the truth is that you lack expertise. Outsourcing is a game-changer for small companies as it can save costs and time. Where should businesses outsource in priority?
- In areas essential to business operations but not linked to the unique business service or expertise.
- In administrative and financial areas, to maximise expert knowledge and streamline processes for time and money savings. My Mountain Mover, for instance, provides virtual healthcare assistants to the medical industry in order to streamline administrative workflows while reducing operational costs and improving patient satisfaction.
- In sales and marketing strategy — too often, businesses select a few activities at random for outsourcing, such as SEO or cold calling. In reality, to benefit from sales and marketing activities, they need to establish a clear strategy to create growth. Outsourcing to a strategist who can manage activities on your behalf can save a lot of hassle in the long term!
The first step of business survival is controlled, managed, and monitored growth. Indeed, many companies go bankrupt at the start of their growth period because they failed to prepare for it. Consequently, it’s essential to organise your business’s digital security, plan, and outsourcing strategy ahead of growth. The longer you wait, the more likely you are to miss opportunities.
Leave a Reply