Small businesses are may sound petty and easy, but did you know that only 50% of small businesses survive after 4 years?
That’s right, a lot of them do not even make it to the 4th year and believe it or not, some even close down after a few months of launching.
There are many reasons for this such as poor planning and bad location but the number one thing that everything revolves upon, is money.
Many small businesses make more loss than profit which is why I advise you to read up on my small business profit tips before making any unnecessary moves:
1) Location planning
Unless you’re doing an internet business, location is the number one thing that affects a certain business.
Bear in mind that location plays a role ONLY to attract people because if your service is terrible, you’re going to lose all your customers anyway.
Many people have this perception that if you open your shop in cities, you’ll get good business.
That may be so, but you still have to bear in mind the rental cost AND the competition.
For example, why would people want to go to your less well-known clothing store if they can just go to ZARA which is less than 5 minutes’ walk away?
Not only will you lose customers to your competitors, you will also still need to pay the expensive rent.
My advice for you when it comes to location planning, is to find a place that has low rental cost and lesser competition because all those heavy competition will eat your business up if you’re not prepared enough.
Well, not if you have some celebs like Lady Gaga going to your store often.
2) Take advantage of internet marketing
Technology plays a vital role in survival today that it’s amazing to know how the internet can make you more money than a real store.
Sure having a shop is important but having an online presence is just as vital.
Did you know that there are over 2.8 billion internet users as of 2014?
Not only will it be a waste if you don’t leverage this by building a website, you will also be seen as “outdated” because almost every business nowadays have a website.
I understand that the biggest obstacle which is stopping small business owners from having their own websites, is money.
I used to be in your shoes after all.
Because if you hire a website builder, they usually charge you somewhere between $3,000 to $7,000 JUST to build your website.
And that doesn’t include the monthly maintenance fees.
Building a website is easy and believe it or not, some people make more money online through their websites than they actually do from their physical shop!
If you’re looking for a program to that teaches you how to build your own fully-functional website for free, here’s my #1 recommendation that I’m personally using to create this very website you’re looking at.
Do NOT for a second underestimate the power of blogging because there are many people who started their business by blogging.
Believe it or not, blogging can give you a great platform to make a name for yourself and create trust.
I have many friends who started a blog and made a significant amount of income, enough to bring their brand OUT of the internet and open a real physical shop because the demand is overwhelming.
For example, think of a blog that you love to follow maybe like an Ed Sheeran fan blog?
And if you somehow knew that the blog that are currently following is opening up a shop to showcase its products, won’t you be tempted to follow and check it out?
Blogs are important in marketing because you make a story for yourself and people who are interested in your story, will be more inclined to buy your product whether online or offline.
So whether you have a small shop or not, having a blog which lets people know of updates is a very important aspect of marketing and business.
If you’re worrying about blogging costs, don’t worry about that because you can always start one for free.
Running a small business used to be easy back in the old days as there was lesser competition and people were more honest but it’s certainly not impossible to run one today.
As long as you keep yourself updated with the current methods of marketing, leverage the online opportunity and learn your competitors’ weaknesses, your business will bloom in no time at all!
For more information on how to develop a viable business online, check out my #1 recommended program here.
Awesome tips Riaz! I’m trying to not build a website because I think it’s going to be hard and expensive but boy I was wrong! Totally agree with you that having a website is important for business, almost all my competitors have them! now that I have my own site, I’m gonna speed up and beat my competitors!
Glad to know you’re getting ahead of your competitors Shazea! Always happy to know my blog tips are able to help people 🙂
very nice article on increasing sales Riaz, i enoyed reading it. Also I actually love this web site, it is so fresh and nice, all the best in going further! I bookmarked your site so that I can come again soon.
Thanks Lorita, now I have to live up to that expectation lol. Hope to see you here again soon!
Lack of employment is also another issue that can cause a small business to close down. I know a handful of people who aim for higher paying jobs will not want to work with smaller business that don’t have much promotion opportunities.
Without sufficient staff, sadly, a local business that’s highly dependent on man power to generate profit will never see their 4th anniversary.
Completely true, Cathy!
I too was thinking like that when I was working haha. I didn’t want to work at small businesses because I know that the pay is lower not to mention the growth opportunity scarce compared to the corporate world. It’s not impossible to grow that small business though, you just need to be open to more ways of making and grow. Thanks for dropping by Cathy!
I’ve known a few small businesses go under due to poor planning which resulted in loss of profits. In reality, a business owner really “owns their own job” because they are always working the business and the minute they stop is the moment their sales and profits stop.
Internet marketing, affiliate marketing and blogging is definitely the way forward for anyone looking for a serious monthly income.
Thank You for your insight into making a profit 🙂
Hello again Neil! I agree with you, business owners are in charge of their own companies’ directions and although it may seem fun and relaxing (It is), it will also bring us nowhere if we don’t move forward. Internet has changed our lives for the better too so learning how to leverage it for an exponential growth is essential for today’s market challenges. Thanks for dropping by, hope to see you again soon!