About 20% of small businesses fail in the first year — and 50% within the first five years. The good news? You can totally prevent your business from becoming one of them. Most businesses fail because of a lack of planning, or through underestimating the amount of resources necessary. As long as you’re aware of the challenges ahead, you should be able to achieve success. Here are a few of the most important tips for business owners.
Employees are the most important aspect of any business. When clients interact with your business, they’re interacting with your employees. Employees who are treated well and truly believe in your products and services will sell your services for you. Frustrated employees are more likely to lack in efficiency, productivity, and customer service.
Your company culture informs your employees regarding their actions when you aren’t around. A “customer’s first” ideology ensures that employees will make sure that customers leave satisfied. An “environmentally-friendly” emphasis instructs employees to waste fewer resources. Ask yourself what your company means to you — and what you want the company to mean to other people.
A disaster preparedness plan is critical for any business. What would happen if you were hit by a bus tomorrow? Would the business continue on while you were out, or would it screech to a halt? Contingency plans should be in place for the absence of any major role — after all, eventually, you need to take a vacation. You should also plan for things such as weather-related emergencies, fires, and theft.
Of course, that brings us to our next point; the importance of different types of insurance for business in CA.
Getting the right insurance is important. Though you can plan for the unexpected, you can’t prevent disaster from occurring entirely. There are types of insurance for business owners in CA that will protect you from issues like cybercrime or vandalism — unexpected issues that could nevertheless severely damage your business.
To save money, make sure you compare your business owners insurance quote to others and look for a business owner insurance quote that provides all of the coverage that you need.
That’s not just about customer service. When it comes to sales, the “customer is always right” means that what a customer wants to buy is what is going to sell. Too often, business owners focus on what they want to produce and sell, rather than what the market will purchase. Be open to changing your products based on what the customers are interested in, rather than trying to force the market to meet your demands.
Businesses need to be able to evolve to suit the market, rather than the other way around. As time goes on, you may find your customers interested in progressively different services or products. You may find that your industry itself is changing, whether it’s through technology or a cultural shift. Keeping your business steadily evolving is the best way to capitalize on this.
Hire an accountant or bookkeeper and make sure your books are up to date. Many businesses fold because they don’t have enough cash available — and many businesses don’t realize they don’t have that cash available because they haven’t been balancing their checking account. Regular reports from your accountant will tell you which areas you need to tighten up and which areas you need to start investing in.
Again: it’s all about planning. As long as you plan ahead, you should be able to rebound even if the worst happens. Zuma Insurance offers a wide variety of business insurance products for businesses of all sizes and industries. Contact Zuma Insurance today to learn more about your company’s insurance needs.