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What makes a business successful?
Many business owners and aspiring entrepreneurs struggle to find the answer to this question – and it’s not surprising, given the failure rate of small businesses.
Here’s how it typically goes:
- 20% fail within the 1st year
- 30% fail within the 2nd year
- 50% fail by the 5th year
- 70% fail by the 10th year
By the end of the decade, only 30% of these small businesses continue to exist.
Of course, the failure rate varies from sector to sector, but it doesn’t change the fact that it’s very easy to go out of business. So, how can businesses thrive and continue flourishing when others are failing?
How Do You Build and Maintain a Successful Business in Singapore?
Building a business and watching it grow and develop takes time, as does maintaining its success.
We look at some professional tips business owners can use:
Have a Strong Business Plan
Creating a strong business plan is critical for any company, new or existing. A robust and well-thought-out business plan will help you outline your goals, strategies, and how you plan to achieve them.
In today’s digital age, you can easily create and share your business proposal with your key stakeholders. Think about what you want to do, and write it down.
Do Your Research
Before starting your business, it’s important to research and understand the industry you’re entering. Doing so will help you make informed decisions about your business and avoid potential pitfalls.
For example, if you’re targeting the Singapore market, what is the level of competition in the sector you’re eyeing? Are there big players dominating the industry, or is it a developing industry that will give early movers an advantage?
Related Read: 7 Business Trends to Pursue in Singapore »
Know Your Target Market
Before you roll out a product or service, you must know and understand who you are trying to sell to. Ask yourself these questions:
- Who is your customer base?
- What do they want or need?
- How can you reach them?
When you create a product with the customer in mind, it helps to solve their key problems and boost product relevancy. Knowing your customer will also help you craft more effective marketing strategies and maintain strong customer relationships.
Develop a Great Marketing Strategy
Failing to market products well is a leading cause of failed businesses. Without a great marketing strategy, reaching your target market and generating sales will be difficult.
Good marketing makes your target customers well-aware of your products or services, engages with them, and encourages them to make a purchase.
It can even build your brand equity by bolstering your reputation, fostering relationships with your customers, remaining relevant, and helping you make better and more informed decisions.
Set Prices Appropriately
Don’t price yourself out of the market or undercut yourself. You will limit your customer base if you price your products or services too high.
If it’s too low, you will face difficulties getting enough profits to continue operating. Find the right balance to make a profit while still being competitive.
Find the Right Employees and Know When to Let it Go
It’s normal to not be an expert in every aspect of your business. As much as your budget allows, hire professionals in areas that you’re not one in.
Don’t try to do everything yourself to cut costs, and remember to put a system in place to determine the performance of your employees.
You should also know when to outsource your business functions to a third party who can do it in a more cost-effective and faster way than hiring an in-house team.
Related Read: Hiring Freelancers: 5 Common Mistakes to Avoid »
Invest in Quality Products and Services
If you want customers to return, you muat offer quality products or services they can’t find elsewhere. This means that you must put your money into products or services that are unique, solve their needs, and are of high quality.
Be Aware of Your Business Finances
Businesses need money to continue their operations, so it is important to keep an eye on your finances. Knowing your bottom line can help you make sure that you’re well-equipped to operate for the long term.
You can also tap into the different funding schemes and grants Singapore offers, especially to new startups, like the Startup SG Founder grant.
Singapore also provides several incentives to businesses, like corporate tax exemptions. Calculate your corporate tax here before you check out the available schemes!
Related Read: 13 Startup Schemes and Grants in Singapore »
Constantly Innovate
Although they have more talent and resources, big businesses tend to face difficulties innovating. One reason is that risk and uncertainty drive innovation, and bigger companies have more to lose if their risk goes wrong.
On the other hand, smaller firms may be advantageous with a faster time to market, being less risk-averse, and having a stronger drive to innovate.
Innovation is essential for businesses to stay competitive and grow. It can help them develop new products or services, improve processes, and find new ways to reduce costs.
Innovation is also necessary for businesses to stay ahead of the curve and meet the ever-changing needs of consumers. If you fail to innovate, your business is unlikely to survive its initial years of establishment.
It Takes Time to Establish Your Business
Lastly, remember that every business needs time to take off. This amount of time may vary from business to business, but don’t be overly concerned if you’re doing things right, but your business hasn’t picked up yet.
Our expert team at Singapore Company Incorporation is also ready to assist you in your business formation and operating queries whenever you need help!
Related Read: 46 Criteria Needed to Build a Successful Business »
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