Only one in twenty new businesses will survive to achieve its fifth anniversary. So what will give you the edge in success? It is important to have a smart start. Here are some common challenges faced by today's small business owners:
1. Having the proper attitude. Many people enter into a new business expecting instant success. However, being realistic will allow you to overcome the inevitable up and downs of the business cycle.
2. Having enough capital. Many people decide to go into business without ascertaing the costs involved. Of course, the capital costs in starting a small business differs based on the type of business. For instance, a home based business is usually less expensive to start up than a retail establiishment. You should have at least 6 months of savings available to keep yourself afloat.
3. Knowing your business. This appears to be rather obvious, but you should know everything about your business. If you are planning to open a Swedish-Spanish fusion restaurant, you should be aware of your competitors, the market, trade journals, the food press and industry leaders.
4. Knowledge of basic business principals. Basics may include legal, accounting, bookkeeping and marketing. Should you incorporate your business? Do you need a contract with a key supplier?
So before you start your business, you need to achieve a smart start before entering the lions den.