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Over one half of all new businesses fail within the first 3 years of trading. But with sound planning, some business knowledge and most important of all a great dream you can dramatically improve your chances of surviving, growing and succeeding.

Have Long Term Goals

The primary task in managing a business is deciding its long-term objectives. If you can imagine what you want your business to look like in five years time you have more chance of achieving your dreams.

Create your Vision

You need to seriously think about what products and services you will be offering and to what type of customer. Consider your future market position and competitive advantage. Do you envisage expanding and if so what turnover, outlets, staff and annual growth rate to you anticipate? Think big and dare your dreams to come true.

Plan your Success

You wouldn’t start on a long journey without a map, so don’t do it with your business. Take your dream and plan the main steps you will need to take to get from where you are now to where you want to be in 5 years. Then plan this in detail for the next 12 months. Include a cash flow projection, so you can be sure you don’t run out of cash along the way. Review what you have achieved every 6 months and plan the next stage of development.

Review your customer profile on a Continual Basis

Most businesses can identify future outgoings. Sales projections are more difficult. Market research helps here. Review the profile of typical customers and note any changes.

Look at your sales pattern. Has it changed dramatically? If so, how will you redress the balance? Are you overly dependent on any specific products or customers? Who are your most profitable customers? Do you look after them to ensure repeat business?

Identify your Most Profitable Products

Do you concentrate enough on these to maximise profits? Exactly how many enquiries do you get anyway? How many of these ask for quotations? How many go on to buy? What is stopping the others from going from one stage to the next? Keeping on top of your product sales will allow you to recognise sales trends which will in turn increase your sales.

Improve your Image

How can you improve the image people have of your business? Why do clients buy? Why don’t they? How important is price or quality when closing a sale? Creating a strong image will help increase the success of your business.

Consider the Competition

How do you compare with your competitors? Can you learn from them? Why do people buy from them, not you?

Setting your Prices

Pricing is a compromise between cost, quality, demand and competition. But when setting a price, remember to cover everything. Using a free delivery service as a sales initiative still costs you money. Margins are very important. It is often better to sell less at a higher margin than to sell more and make less money.

Discounts

Giving discounts is a great sales tool but you must remember to consider their real impact on profits. If you buy something for