Many people begin their entrepreneurial journey with aspirations of building their venture into a business empire. For some, these dreams of expansion and long term success become a reality. Figures from the US Bureau of Labor Statistics (BLS) suggest that 20% of businesses fail within their first two years, and a further 45% of companies fail during their first five years. Every entrepreneur launches their business intending to make it successful, so when their plans don’t work out, it can be hugely disappointing.
With careful planning, it is possible to give your business the best chance of long term success and minimize the risk of your company becoming one of the 20%. In this article, we will look at some of the ways you can help build a successful business and minimize the risks of launching a new company.
Consider a Franchise
Starting a business can feel like leaping into the unknown. You may feel apprehensive about the challenges that lie ahead and concerned that you will be out of your depth. If you are keen to become your own boss but are worried about going it alone, you may find that buying into a franchise is the best option for you. A franchise can offer the best of both worlds; you get to be your own boss, but there is also support there when you need it.
Running a franchise can help to offset some of the risks involved in starting a business. This is because a franchise can enable you to trade using a well-known brand name and follow a business model with a proven track record of success. If you decide to buy into a franchise, you will find that they are available in a range of sectors, from hospitality to the care sector. However, to buy a franchise is not totally risk free.
Just one of these factors mentioned in the article is if the franchise is established. It’s a rather simple principle: established franchises have more experience and those that adapt to the ever changing world survive. Another factor to consider is how well-known the franchise is relevant to the area; long story short: the more unknown your business is, the more advertising costs you will have. You also have to know how essential the industry of the franchise is, especially since COVID-19. Finally, capital risk and government regulations must be factored in, especially in international franchises.
Choose a Future-Proof Industry
To help ensure your business’s longevity, it is vital to choose a future-proof industry. Carrying out some research and spotting trends is crucial. Taking some time to think about the sectors that are set to thrive in the coming years is essential to helping you make the right choice. For example, cybersecurity services are increasingly in demand to meet the increased threat from hackers and businesses’ need to protect their data, so starting a business in this sector could be lucrative. Another future trend to consider is the needs of the country’s aging population. With an increased number of seniors in the US, you may want to consider business options such as a Home Care Franchise to meet the growing need for senior care.
Don’t Do Too Much Too Soon
Once you have launched your business and things are going well, you may be tempted to expand quickly. However, growing a fledgling business in a short time frame can be a big gamble and could put your new business under increased pressure to perform and makes the stakes to succeed far higher. Taking a slower, measured approach to expansion should help you to nurture your business to continued success.