Top 15 Recycling Business Ideas 2018: Best Eco-Friendly Opportunities

Top 15 Recycling Business Ideas 2018: Best Eco-Friendly Opportunities

Recycling Business Ideas

 

Yes, unfortunately, our world gets polluted. And ironically this creates new business opportunities.

Today one of the most innovative areas for starting up a new business is recycling. Hundreds of new recycling business ideas, new materials and methods emerge every year.

Recycling business is a great win-win opportunity for us and the environment.

Even more, going green is a trend of today. Recycling business is the business of the future.

Recycling business is the business of the future. Click To Tweet

 

With all the valuable materials that get dumped into a landfill happening every day, starting up the right type of recycling business offers you a real opportunity to do something good for the environment and make a profit as well.

The only thing it takes is to come up with the best recycling business idea that you would like to work on, and well, start working on it.

Though this might be a tough task looking at the increasing number of recycling business ideas popping up almost every day because of the ongoing pollution across the world.

 

Related: How to Start a Business: The Ultimate Guide

 

Like we noted above, there are literally hundreds of recycling ideas for businesses out there. It might be overwhelming to navigate between them on your own, so that’s the reason we decided to put together this blog post.

In this article, we provide the top 15 recycling business opportunities that will help you build up your company and if done in a right way – enjoy real profits.

 

So, here are the best 15 recycling business ideas as of 2018:

 

1. Construction

 

This is a pretty straightforward small scale recycling business idea.

There are many different materials that can be recycled from construction waste, including metals, electrical materials, hardwood, and more. All you need to do is collect them and sell them to recycling centers or directly depending on their condition.

 

Recycling Business Ideas - ConstructionDifferent recyclable materials can be obtained from construction sites, including metal and plastic.

 

2. Cooking Oil Recycling

 

Cooking oil recycling is one of the easiest among recycling business ideas listed in this article.

This type of recycling takes away the impurities from used cooking oil so that it is fresh once again. By offering the clients this service, they can have their used cooking oil taken away and will purchase the recycled cooking oil from you as part of the process.

 

3. Electronics Recycling

 

The electronic recycling is another way to build your recycling company. Purchasing scrap electronics from devices and other sources and selling them to recyclers will offer a considerable profit margin for your business.

The types of devices that can be recycled or even refurbished are laptops, computers, mobile phones, and electronics of all types.

 

4. Garbage

 

Relatively low cost recycling business idea; You can recycle the garbage from homes and businesses, picking up their debris on a regular basis and providing bins that separate out the recyclable material. This makes it easier for businesses to recycle and for you to make money after a reasonable investment.

 

5. Printer Cartridges

 

This is another highly popular form of recycling business thanks to the price of the printer cartridges. 🙂

A simple cleaning and refilling process will provide you with a good profit while offering cheaper cartridges to businesses and corporations.

 

6. Scrap Gold

 

Certainly, one of the most profitable among the all recycling business ideas.

The good news about gold is that it is easy to melt, malleable, and does not lose its purity even when used repeatedly. Add to this that gold recycling is cheaper and better for the environment than mining and you have a real winner.

 

7. Tire Recycling

 

Recycling tires have been around since World War II. Considering all the tires that are still in landfills and other areas, recycling them is something desired by everyone.

 

Recycling Business Ideas - TiresTire recycling offers a great profit margin.

However, it is a dirty job and finding the right companies to work with can be problematic. Still, if you can set up a tire recycling business, the profit potential is considerable.

 

8. Wood Recycling

 

Wood historically has always been recycled. Even today, timber still can be recycled in eco-friendly ways.

On top of that, there is a solid belief among potential customers that by purchasing recycled wood, the demand for “green timber” will fall and ultimately benefit the environment.

Thus, recycled wood products with “eco-friendly” labeling have potential to boost the sales. Recyclable wood is easily obtainable through construction waste, demolished buildings and infrastructural objects, old furniture and other similar sources.

 

Recycling Business Ideas - WoodWood recycling is one of the oldest among recycling business ideas.
It is also relatively easy to obtain from the wide variety of places including construction and infrastructural objects.

 

9. Glass Recycling

 

The glass is 100% recyclable. Even more, glass can be recycled endlessly without any loss in quality or purity. For every ton of the recycled glass over a ton of natural resources are preserved.

 

Glass Recycling Infographic

Image Source: GPI
Read also: Frequently Asked Questions: Glass Recycling – Stanford University

 

10. Waste Collection Center

 

This is a simple and low cost recycling business idea.

You probably have such sites in your own community, but there are still plenty of opportunities to start your own recycling business. Your recycling plant can include a number of items from cans, paper, and bottles which you can ship to larger centers and get cash.

 

11. Paper Recycling Business Ideas

 

 

Did you know that approximately 79 percent of all US papermakers use some recovered paper to make new paper products such as paper-based packaging, tissue products, office paper, and newspaper?

 

 

Recycling of paper products has been around for decades. This is perhaps the most famous one among all existing recycling business ideas.

It is a simple business model that when performed efficiently may lead to a substantial income stream. This is because the paper is in high-demand and recycling helps keep the supply available.

 

Recycling Business Ideas - PaperThe global demand for paper is high. This creates a room for the profitable paper recycling business ideas.

 

It’s quite popular to save and recycle paper which is why starting up a business in preserving the supply of paper is a good idea.

Starting up a paper recycling business is easy if you do not plan setting up a recycling plant, but instead focus on supporting activities first.

You will usually need a site where people can bring their paper or some form of truck that can pick up the paper that you pick up from people.

Almost any kind of paper can be recycled.

All you need to do is collect the paper in sufficient numbers. Then take it to the recycling center and start making money.

The trick though is to collect the paper in the first place. So here are some ideas that will help you get started:

 

> Collection Locations

 

You can set up large bins for collecting newspapers and the like at shopping malls, restaurants, and other locations. Make sure that the location is popular though. It is usually where large groups of people gather.

You’ll need the bins, permission to set them up, and a vehicle that can pick them up. While this is a great way to collect paper in a passive manner, do not expect this method to be the most popular.

 

> Sweeping Neighborhoods

 

Here is where you will pick up most of your paper. People can simply store the paper in their garages or storerooms when you come by to pick it up.

By canvassing local areas, you may be able to gather up large quantities of paper on a regular basis. You can use the same truck to deliver it to the recycling plant or perhaps you can create your own.

 

> Creating a Recycling Center

 

To set up a site that recycles the paper will most likely require:

  • proper licensing from the local and state authorities (depending on your location);
  • equipment that does the recycling itself;
  • means of transporting the paper when it arrives.

You will also need to figure out what you are going to recycle the paper into so that you can make your profit from the sales.

You can create your own paper products from the materials, such as soft cardboard, plates, cups, and so forth. Then you can sell these products directly to businesses like restaurants or hotels. They usually buy and use these products in bulk.

Additionally, you can create high-quality writing or copy paper that you can sell directly to customers or businesses.

It’s your recycling business, so you can take it in whatever direction makes the most profit. The good news is that you can start small in collecting paper for other recycling centers until you make enough to create your own, fulfilling a need in your community. Plus, you are helping to save trees and making the world a little more green.

 

12. Packaging Material Recycling

 

At first glance, it may seem that recycling packaging materials is not worth the effort. However, consider that just about every single item that is shipped around the world includes some type of packaging material.

Because there are shortages of new packaging material in some parts of the world, the demand for recycled materials is greater than ever and growing every day. Growing volume of e-commerce worldwide will most likely help to keep this trend upwards.

 

Statistic: Retail e-commerce sales worldwide from 2014 to 2021 (in billion U.S. dollars) | Statista

Retail e-commerce sales will keep rising worldwide during the coming years.
This will positively affect the demand for packaging materials.

 

The typical items that you want to recycle include the following;

  • Foam (Packing) Peanuts
  • Cardboard Boxes
  • Plastic Bags
  • Pallets
  • Wrapping Foam & More

You can start with packing peanuts as they are some of the easiest to collect, yet expensive to buy. A single yard bag full of packing peanuts can retail for upwards of $75. So, you can see how it can become profitable if you find the right sources.

Businesses, facilities, and warehouses are good places to start. You can take the packing peanuts and other packaging material off the hands of business owners for free or a small payment and then turn it around to make considerable cash by offering the same materials to companies that sell the products or you can sell it yourself.

If you start with packaging peanuts, you can work your way towards other materials and earn a tidy profit over time. The hard part is finding the places where you can obtain the materials. Once discovered, the rest is keeping the reusable part and throwing away the waste.

 

13. Electric Wire Recycling

 

You may be surprised at just how much electronic waste is available for recycling purposes. You can set up your business to purchase old, worthless electronic devices, peripherals, and related materials. Then you can sell them to a recycling center. However, if you can manage to recycle them yourself you can sell them directly to companies that manufacture electronic devices, gadgets, and the like.

The first step is researching sources of electronic waste, which includes residents and companies that use such devices like computers, laptops, mobile phones, and so forth.

 

Recycling Business Ideas - Electric Wire RecyclingMany US companies ship their e-waste to countries like China in order to avoid the disposal costs.

 

You’ll find that purchasing scrap or worthless electronic gadget is straightforward enough, but the complicated part is deciding whether to partner up with an established recycling plant or do the work of stripping out the unnecessary components yourself. It’s not easy work, but if you know what to look for it can be simple to separate the wanted materials from the unwanted ones.

By choosing the latter, you can make a considerable profit depending on the amount of electronic scrap you can find. The good news is that you can focus on the items that are beyond repair and therefore obtainable with little to no money. Then, you can process the scrap by removing the unwanted elements and selling the rest to manufacturing companies that use recycled materials.

This is a business that takes time to set up and get going, but the profit potential is considerable if you can maintain a steady supply of waste materials.

 

 

14. Battery Recycling

 

The good news about battery recycling is the overall popularity of the business which is relatively easy to start. There are numerous places in most communities that will pay for lead-acid batteries. You can get prices that pay per pound or per battery. A common price is $5 to $7 per used car battery.

 

Recycling Business Ideas - Battery RecyclingAround 99 million wet-cell lead-acid car batteries are manufactured each year.
Part of this number is made of recycled materials.

 

The beauty of this type of recycling business is the sheer number of lead-acid batteries that are currently sitting in garages, maintenance shops, businesses, and other locations for years that could be recycled.

However, the toughest part of getting started is finding the locations for such batteries which tend to be scattered about. You may want to setup a website so that residents and business owners can find you.

Lead-acid batteries are used primarily for vehicles, motorcycles, and boats. So, you will need to do some searching to find those sources in your community. You may want to post ads in traditional media sources, such as newspapers or radio to help you in your search.

Of course, you’ll also need to find locations that purchase lead-acid batteries, so you can get a good price. Over time, you can work your way up into creating a positive cash flow that leads to other forms of recycling.

Depending on how you can obtain the lead-acid batteries, you can make a considerable profit when you have eager buyers willing to pay top dollar.

 

15. Home Items Recycling

 

This is a recycling business that usually starts with your own home and finding items inside that can be resold easily. Home items include a broad category that ranges from kitchenware, bathroom, toys, garage tools and equipment, and so forth. Whatever is found in the home that is reusable can be the source of your recycling business.

 

Recycling Business Ideas - Home Items RecyclingHome Items Recycling is just like many other recycling business ideas. You can start it with your own home.

 

Launching a home items recycling business is easy and straightforward. You should start by seeing what specific items are valuable and can be resold for a small profit, then focus your efforts on finding people who want to clean out their homes of such items.

You can even charge a small fee for coming by someone’s home and taking out their unwanted items for you to recycle.

This means setting up a business where you list the items of value, so they can be separated by the homeowner and be easily sorted.

If any items are not recyclable, you can always dispose them on your way to the recycling plant or clean and sell the items yourself online or at flea markets. Keep in mind that the per-item profit will probably be small, so you will need to increase the quantity to garner a good cash flow.

At least you have plenty of homeowners who are looking to get rid of their unwanted items to choose from when you start. Whether you choose to sell to another recycling business or go into business on your own, there is a great deal of potential in choosing home items as your primary source.

 

Additional information on recycling business

 

As you already know, recycling as a business sector is a relatively new thing. There are still many questions left unanswered on all types of recycling businesses.

Below we will try to shed some light on the most frequent questions asked on recycling business and provide little more information with regards to recycling business ideas listed in this article:

 

How to Start Recycling Business from Home?

 

Starting recycling business from home may sound crazy, but the craziest thing is that it is 100% possible. More than that, people are already doing this across the globe.

Look at this:

 

 

Precious Plastic has everything for you to start your plastic recycling business from home right away.

The model of Precious Plastic can be applied to business opportunities in recycling other than plastic too.

However, starting a recycling business is not only about setting up your workspace and putting in place your production lines. Do not forget that the recycling business is still a business, thus it needs to be treated accordingly.

So, before going ahead with what Precious Plastic (or any other project) provides it can be a good idea to check the basics.

To start a recycling business from your home, the first step is to do a little research that includes the type of items you want to recycle, the amount of space you need, and any equipment necessary to do the task. Along with that you also need to know if what you recycle is really in demand in your community and what is the strength of your competition.

Moreover, your recycling business will need to follow your local laws, rules, and regulations in terms of getting a license and what can be stored on your property.

Overall, there are lots of things to do for starting a recycling business from home, but the most important thing is that it is possible. To make your journey easier refer to our extensive guide on how to start a business for the step-by-step process of starting your recycling company from home.

 

High Profit Recycling

 

There are certain materials that recycle for higher rates compared to most others. By focusing your small business on a specific item or related group of items, you can increase your profit potential considerably while sticking to a tight budget.

Some of the items that provide good profit include the following:

  • Aluminum
  • Clear glass
  • Copper, Bronze, and Brass
  • Gold
  • Electronics, Computers, & Related Devices
  • Printer Ink Cartridges
  • Oil Filtration & Recycling

Each of these items offers a high-profit potential for recycling. For example, purchasing gold from rings, electronic devices, and other sources can be quite profitable.

 

Recycling Business Profit Margin

 

For your recycling business to succeed, you will need to limit your expenses while maximizing the flow of recycled products. So, your first goal is to minimize your output which helps increase your profit margin.

Focus on high-return materials such as copper and gold which offer a considerable profit. Items like general garbage should be avoided given its low profitability.

 

Most Profitable Things to Recycle

 

For those who want to keep their recycling efforts small, but highly profitable, it pays to focus on the items that bring in a high return rate. Arguably the most profitable in terms of return rate and finding the materials are copper and copper alloys such as brass and bronze. Per pound, copper and its alloys bring in a sizable return. Just beware that the competition for these materials is quite high.

Other profitable materials include gold, electronic devices, and printer ink cartridges.

 

Recycling Options for Small Business

 

You have a few options when running a small recycling business in terms of making it successful. Your first choice is what material you want to focus on recycling and building your efforts around that. You can expand your business later to take advantage of other materials if they become more profitable.

Other options include limiting your search area for items, buying vehicles for large hauls, and transportation to more profitable recycling locations.

 

How to Start a Recycling Business?

 

The first step is to read our Ultimate Guide on How to Start a Business.

The second step is getting familiar with the government rules and regulations about running a recycling business.

After that, you will need to choose what types of items for recycling best fit your business parameters. Most small recycling companies focus on high-profit items such as copper and alloys of copper, gold, and electronics.

However, you can choose the items that best suit your business goals. For example, you can pick one from the list of recycling business ideas above.

Next, assess the capital needed to start your business, set a budget, and purchase what is necessary to get started.

The good news is that everything you need to be successful can be found in your community, you just need to find it.

In any case, in this guide, you will find all the necessary actions to take in order to start your own recycling business, so the general advice would be to read it and try to implement as accurately as possible.

 

Below are some great resources for further guidance on recycling and recycling business ideas listed above:

 

Why Do Small Businesses Fail: Top 10 Reasons and Best 50 Solutions

Why Do Small Businesses Fail: Top 10 Reasons and Best 50 Solutions

Why do small businesses fail?

 

The sad truth is that most small businesses will fail.

In most countries (including the US and UK), more than half of newly created enterprises fail within the first five years (business failure statistics according to OECD Entrepreneurship at a Glance Report 2016 and Eurostat).

 

EU Business Survival Rate

One, three and five-year survival rates of enterprises in EU (2014) © Eurostat

 

New business failure rates are high.

Small businesses around the world are failing for the same set of reasons, even as you read this article.

We think you’ll agree: that sounds pretty frightening for every (soon-to-be) entrepreneur.

 

Or does it?

 

Well, as it turns out, knowing the major small business failure reasons in advance, or at least sufficiently early, can be life-changing.

 

This in fact can save your new business from failure.

 

And this is exactly the rationale behind this comprehensive article.

 

Here, we outline 10 major small business failure reasons, and provide 50 actionable solutions against potential failure.

 

And the best part?

 

Most of them are ready to implement, starting now!

 

Ready?

 

So, what are the primary causes of business failure and what can you do about them?

 

Let’s dive straight in.

 

Sections:

 

  1. Low Sales
  2. Lack of Experience
  3. Insufficient Capital
  4. Poor Location
  5. Poor Inventory Management
  6. Over-Investment in Fixed Assets
  7. Poor Credit Arrangement Management
  8. Personal Use of Business Funds
  9. Unexpected Growth
  10. Competition

1. Low Sales

 

This is a catch-all for many small business failures.

So what’s the problem?

Pretty straightforward: low sales is probably the shortest way to business failure.

Obviously, there are some reasons behind low sales volume.

Sometimes this can be a poor marketing strategy, not enough spent on advertising, a complicated process for customers to purchase the product, low production rate, and so on.

One of the classic reasons for low sales is not enough funds being allocated to marketing. Too many businesses fail to put sufficient funds to adequately promote their products or services.

Needless to say, to avoid issues of low sales all aspects of marketing and manufacturing will have to be considered.

 

Solution 1.1: Proper planning =  Higher chances.

 

Let’s be honest, most of the sucesfful businesses are built on meticulous planning. Very seldom spontaneous projects turn to profitable businesses.

You’ve probably heard the advice a million times, but proper planning is indeed critical.

This perfectly applies to your sales.

Before acquiring the loan to start your business, it is important to predict the necessary amount of sales needed to sustain the company once the loan becomes due.

A similar planning is also required when you start a business with your own money.

When the projection is made, it is important to tailor everything else to match it (your expected burn rate, marketing, finances, etc.).

Although it is impossible to predict the exact sales volume, it is still wise to be prepared for the worst scenario.

 

Solution 1.2: Reinforce your sales & marketing techniques.

 

Here’s the point:

Attracting enough sales depends on how you are marketing the product or service.

Successful businesses constantly seek to run their marketing at full speed and convert as many leads as possible, often at an increasing pace.

Business milieu rarely forgives any slack. You probably won’t survive if you fall behind.

Yes, it maybe a little sad.

But it’s true.

 

So do not lag behind!

 

Rethink your sales & marketing. Clear them up of all garbage.

Unnecessary stuff slows you down while you barely notice this.

Try to identify the weakest parts of your marketing & sales process, which are holding you back and providing none or very limited results.

Once you know what they are, immediately get rid of them.

You may later substitute those parts with entirely new practices, methods, tactics, and strategies.

 

The whole idea here is to:

1. clear things up;

2. keep testing with existing and new material;

3. leave only those things that bring tangiable results;

4. Repeat 2 and 3.

 

Pro tip: Never stop testing. Try to beat your best methods, tactics, and strategies with the new even more effective ones.

 

 

Solution 1.3: Get maximum sales on each customer (probability of sale as high as 70%!).

 

Here’s the thing.

You probably already know that a new customer costs significantly more than existing customers.

Acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.

At the same time, according to Marketing Metrics there is only a 5-20% probability of selling to a new prospect, while chances of selling to an existing customer are between 60-70%.

 

Your existing customers are at least 3 time more likely to buy from you.

 

%

New Customer

%

Existing Customer

 

All you have to do is to take this chance.

We recommend starting with upselling and cross-selling to see if they work for you.

To get off the ground, you can check how other businesses are already using upsell/cross-sell to increase their revenue.

Not grabbing the chance to sell more to your existing customers is missing an opportunity.

 

And opportunities shouldn’t be missed.

 

Remember: lost opportunity harms your business and contributes to failure.

So, it’s important to tap into every opportunity that your existing customer base provides you.

If you already have a client database in place, why not use it to increase sales?

Here are some tips to help you leverage customer data.

 

Solution 1.4: Effective Pricing.

 

Underpricing?

 

Overpricing?

 

Those are questions that haunt many entrepreneurs.

 

Picture this:

The influence of pricing strategy on sales volume is tremendous.

 

Before we go any further, just check this out:

 

 

Impressive?

You bet it is!

 

Pricing is art. Pricing is science.

Right pricing is hard.

 

But one thing’s for sure:

Pricing always deserves a focused approach.

 

The right pricing strategy can enhance sales volumes, laying the foundation for a business that will prosper.

Get it wrong, and you may end up with problems that will drag down everything you’ve built.

So, it’s probably a good idea to review your pricing strategy.

Try out different pricing methods and techniques that are available to you.

Stick to what brings you more profit.

 

Read these articles on pricing and pricing psychology for further guidance:

 

Solution 1.5: Do not squeeze your marketing budget, unnecessarily.

 

Marketing is something everyone wants, but no one wants to pay for.

The key is to approach this issue in a slightly smarter way. Understand this, slashing your marketing budget without good reason means cutting off opportunities.

 

Unnecessary cuts of the marketing budget means cutting off the opportunities. Click To Tweet

 

 

Which is not to say that rationalizing a budget isn’t a good idea. But it’s not the marketing budget that should be cut, it is individual toxic marketing elements that must be out of it.

Those are two entirely different concepts.

 

Solution 1.6: Collect customer feedback and use it to increase sales.

 

This cannot be over-emphasized, since customer feedback is globally accepted as critical for business.

Customer feedback can help you in many ways by providing actionable insights to create a better customer experience. Tangible data from customers can be used to make better business decisions.

If utilized effectively, customer feedback will help increase sales.

Consider this, for a second:

 

  • Dissatisfied customers 4%
  • Customers who do not voice complaints 96%
  • Customers who will never come back 91%

 

Customer feedback is essential.

The constant dialogue with people for whom you have designed all you efforts looks just natural.

If you do not know where to start, try the five easy ways of collecting customer feedback from Salesforce and see how you can increase your sales with the newly acquired data.

 

Solution 1.7: Overdeliver.

 

Overdelivering is a part of the more general concept of exceeding customer expectations.

This is a powerful way of stable sales growth and is backed by human psychology (“happiness = reality – expectations” principle).

 

Happiness = reality – expectations Click To Tweet

 

An incredible experiment has been done on this by Elliot Aronson (University of Minnesota) and is available here if you want to explore this phenomenon further.

 

One thing is pretty clear: people (a.k.a. customers) like it when you exceed their expectations.

 

People (aka customers) like when you exceed their expectations. Click To Tweet

 

This works, and many businesses have successfully proved it. So, when your sales are floundering, try overdelivering.

Here is an excellent guide by Shopify on this topic. Start implementing it right away.

2. Lack of Experience

 

This is a generalization of sorts, but not having the experience of managing the grind of a small business is one of the primary reasons for failure.

Those who have the relevant experience usually understand the daily challenges that a small business faces. More importantly, they are more likely to spot potential trouble in time to make course corrections.

Of the small businesses that succeed, many are run by people with previous business experience (including failed business attempts), whether it was their own venture or assisting someone else with a startup.

 

What it means is this:

The more business experience you have, especially with running the daily operations, the more likely you are to succeed.

 

Which is not to say that you can’t hit the bullseye with your first try.

 

Well, that’s fair enough, but…

 

What specific options are available, for you to start and run a business with no prior experience?

 

Let’s take a closer look.

 

 

Solution 2.1: The easy way – start a business in a field that you already know.

 

This is a no-brainer.

The good business idea is not always something red-hot. So, do not torture yourself trying to come up with a revolutionary business idea.

There are always some business opportunities out there in almost every field (including yours). Most of them are pretty straightforward and time-tested.

You might just pick the one that looks most promising and closely related to your unique experience.

The next step would usually be validating the idea, and once that is done you are ready to initiate the process of setting up your business.

Starting your new business in a field that you are already well versed in will provide you with a nice starting boost and probably a valuable competitive advantage.

If you want to make your life easier and the probability of failure lower, then it is an excellent idea to start a business that suits your expertise.

 

 

Tip:

In case you can’t find a business idea that appropriately matches your experience you can try asking yourself the following simple questions to find one:

  • What is my biggest knowledge that makes me different from others?
  • What skills I have developed that no one or very few people can have?
  • What other experience I have that no one else have?
  • Can I use those experiences to build something special for other people?

 

This may seem elementary at first glance, but it is a powerful technique to understand your unique experiences and discover specific business opportunities that are open to you.

 

Pro tip: Used in conjunction with our Business Idea Ranking Table, this strategy can bring you fantastic results.

(For full guidance on how to use the Business Idea Ranking Table read our Ultimate Guide on How To Start a Business)

 

 

Solution 2.2: Learn as much as possible.

 

If you have already started a business or decided to go with a business idea in an industry that you have no previous experience of, then the best solution might be to study things and learn as you go.

Educate yourself as much as possible. Education has a positive correlation with business success rates.

 

Education has a positive correlation with business success rates. Click To Tweet

 

Research all ins and outs of your particular business field and the industry it’s part of.

Meet as many people as you can and read/listen as much as you can about the industry to have a broad understanding of the field and get up to speed quickly.

Apart from industry-specific insight, you also need general business knowledge to compensate for the lack of experience.

As a quick yet effective solution, we recommend reading the Personal MBA by Josh Kaufman.

 

 

Solution 2.3: Find a mentor.

 

A good mentor is an invaluable asset in business. Even the most successful entrepreneurs have had a mentor.

You might do as well.

Try to find a mentor for free on SCORE (US) or Mentorsme (UK). Alternatively, contact your local small business organizations for mentoring if your business is located elsewhere.

 

SCORE - Free Small Business Advice

SCORE is a non-profit organization dedicated to helping small businesses through education and mentorship.

.

3. Insufficient Capital

 

Believe it or not, but…

Perhaps the most common mistake that people make when starting up their small business is not having enough money on hand.

All too often, the money used to start the business does not last long enough for the company to make any profit.

This is particularly true when a large loan is used to get the business started.

With no/poor business planning/management it’s easy to run out of cash before the business starts bringing in enough revenue to keep it alive.

When a business runs out of cash, it rarely survives.

 

Solution 3.1: Get at least 25% plus capital before you start.

 

Every small business/startup ought to have sufficient capital to get the business through the first six months, and often longer, depending on the overheads that need to be paid.

So, calculate how much you will need to pay over six months (or a year) and add extra 25% for unexpected expenses.

More is better here. Cash is the lifeblood of business.

 

Cash is a lifeblood of business. Click To Tweet

 

 

The larger the capital you have available, the more time your business will have to prove itself and start generating revenue.

 

Solution 3.2: Understand your finances.

 

Seriously, do it now.

If you have already started your business, the sooner you understand your finances the better your off business will be.

Along with sufficient start-up capital, it’s pretty important to know what you are doing.

Depending upon your approach, your capital may drain away quickly or last longer.

Master this part, starting today.

Reading the Personal MBA by Josh Kaufman, the business book we have mentioned above should be a good way to start. The book has a chapter dedicated to Finance, which outlines the finance fundamentals quite comprehensively. You can just start right away with that.

Understanding the basics of finance before you actually start a business is essential.

It’s often not too late to catch up when you already have an operating business and it has not failed yet.

 

It is material to understand the basics of finance before you start a business. Click To Tweet

 

 

Solution 3.3: Watch your burn rate.

 

To get the most out of your available capital, it’s important to watch your burn rate.

Reliable and right accounting helps to effectively manage your finances and directly influences your use of funds.

The key is to reach a balanced rate of spending, according to a research paper titled “Startup Survival and a Balanced Burn Rate”, co-authored by Wharton marketing professor Ron Berman and Pablo Hernandez.

To dig even deeper and get your burn rate balanced we recommend reading this.

 

Solution 3.4: Establish reliable accounting (bookkeeping) system.

 

Reliable and right accounting helps to effectively manage your finances and directly influences the usage of your funds.

No doubt about it.

Handling the accounting (bookkeeping) on your own (even for the first few months) might look like a great cost-saving idea, but it rarely is.

We believe that accounting (bookkeeping) can properly be managed only by professional accountants/bookkeepers.

Depending on your circumstances, you might hire an in-house accountant or outsource this. The point is, the accounting part of business needs to be consciously delegated.

With professionally managed accounting (bookkeeping), in the long run you’ll save time and money, and prevent ulcers.

Even more, you’ll make sure that finances flow in and out in a structured and transparent manner.

This is absolutely vital to help you make the right decisions.

For even more flawless accounting you can use accounting software.

Below are some, check them out:

Wave Accounting
QuickBooks Accounting Software
Xero Accounting Features
FreshBooks Cloud Accounting

 

Solution 3.5: Avoid bad and unfamiliar financial mechanisms.

 

Financial mechanisms look attractive. They lure business owners and seem to be a good option to solve any capital related troubles.

However, not all of them are innocuous.

Any money that has been provided in the form of a loan inevitably turns to debt.

The debt coupled with disadvantageous conditions may easily lead to disaster.

Bad and/or poorly arranged financial mechanisms must be avoided by all means.

The best solution is to refrain from the use of any financial mechanism unless you are 100% sure of what you are letting yourself in for.

 

4. Poor Location

 

Let’s face it.

Although this is not about all types of business, location is often something that makes or breaks your business.

 

Location is often something that makes or breaks your business. Click To Tweet

 

 

It’s all about the location, especially when your business caters to local customers.

You may have noticed that the good locations cost considerably more than out-of-the-way areas in your community.

This requires careful research on your part when it comes to choosing the right place for your business.

Prime real estate is expensive as it’s a key driver of foot traffic and sales.

If you have already chosen a not-so-good location or simply can’t afford a good one, then try to compensate for this weakness by adopting appropriate actions.

 

Solution 4.1: Choose the right location from the outset.

 

When choosing the location for your new business pay attention to the following factors:

  • Rental Cost
  • Foot Traffic
  • Convenience
  • Crime Rate in Neighborhood
  • Target Consumer

 

You need to be where your best customers can find you.

This means having an easily accessible location even during rush hour.

Plus, an area that generates a good amount of foot traffic and is considered safe by the public.

Falling in love with a particular place is easy. But do not get fooled by your emotions.

Ignoring the real world may lead to subsequent financial loss.

To avoid this scenario, we suggest using the simple ranking table.

People often overlook the power of ranking tables, whereas they are highly reliable bias filters. 🙂

Below is the very basic ranking table that you can use for the purpose of finding the best available location for your business:

 

Business Location Ranking Table

 

While using the table, it is mandatory to base your numbers on hard facts only.

Ignore your unfounded inner voice/opinion.

The solid facts and numbers are real.

Anything else that has no reasonable grounds is often just plain illusion.

Illusions do not interact with the real world.

 

Pro tip: To achieve the best results you can slightly modify the ranking table by including additional industry-specific criteria and/or sub-criteria.

 

 

Solution 4.2: Go online.

 

In a modern world online by default means great location. Having an awesome website/online presence in addition to your physical location is a beautiful thing.

 

Awesome online presence in addition to your physical business location is a beautiful thing. Click To Tweet

 

 

With each coming year, online matters more than anything that mattered before.

If your business suffers from poor location, going online can save you from probable failure.

Try to compensate (or complement) the drawbacks of your location with available online opportunities.

 

Want to know the best part?

Although there are currently well over 1 billion websites worldwide, small businesses still do not seem to take full advantage of this. According to a survey by Clutch, nearly half of small businesses in the US do not have a website!

Another research by Godaddy & Redshift Research shows that in Australia, Brazil, Canada, India, Turkey, United Kingdom, and United States 59% of small businesses don’t have a website. We assume that this number is somewhat equal or even higher in other countries.

Obviously, small businesses around the world aren’t fully utilizing the internet.

 

 Survey question: Does your company have a website?

  • Yes, since 2014 or earlier 41%
  • Yes, since 2015 13%
  • No, but plan to in 2016 17%
  • No, but likely in 2017 or later 7%
  • No, unlikely in future 12%
  • No, neither likely nor unlikely in future 10%

Data source: Clutch

Some of the respondents are your competitors.

Needless to say, even a basic website means a quick win over at least part of your competition.

The best thing you can do today is to create a website (if you still do not have one). The rest will follow.

Just make sure that you constantly keep working on your website/online presence and that you devote the time, effort and budget for this to start bringing results.

 

Solution 4.3: Maximize your signage.

 

According to International Sign Association – Your sign is your voice on the street.

Just imagine:

The powerful marketing tool working for you 24 hours a day, 7 days a week, 365 days a year.

 

Did you know that…

Only 1% of first-time customers come in because of your TV ad and 50% come in because of your sign?

 First-time customers coming in because of:

 

 

%

Sign

%

Word of mouth

%

Newspaper, Yellow Pages & Radio

%

TV ad

 

The number of exposures that a good signage can bring is insane.

What we also like about the signage is the durability. A one-time investment made in a proper signage that requires no further effort from your side can deliver years of non-stop marketing.

Do not underestimate the power of signage. Get the most out of it.

 

 

Create your signage based on the following:

  1. Compelling color
  2. Contrast for readability
  3. Size

 

 

For further guidance on signage and its economic value, see ISA and a handbook on how on-premise signs help small businesses tap into a hidden profit center by New York Small Business Development Center.

 

Solution 4.4: Understand if your location is indeed bad.

 

Sometimes, when your business is not performing well enough, you might see the location as the number one reason.

However, this might be a hasty conclusion.

Before making this kind of verdict, reanalyze your business performance.

First, try to push harder with your marketing channels and other available options to improve the business results.

Try to clear things up and see if your location is actually what is holding you back.

Nine times out of ten you will realize that there are untapped opportunities that you did not use previously.

It’s helpful to get customer feedback while running your marketing at full speed. Survey your existing clients to get to know what they think about your location.

In case it becomes apparent that your business location is doubtlessly wrong and there is nothing you can do about it – move to the Solution 4.5.

 

Solution 4.5: Change your location.

 

Sometimes, the business location is chosen so badly that spending extra energy on it makes no sense. So, if none of the methods listed above improve your business results – change your location.

Do not throw good money after bad, and do avoid a widespread escalation of commitment pattern.

5. Poor Inventory Management

 

Let us be brutally frank:

Too many businesses either overstock on products that do not sell or do not have the products that are selling.

The good news is, thanks to new methods of inventory management, you can significantly improve your systems and keep track of what you sell virtually in real time.

So let’s get down to it.

 

Solution 5.1: Set up your inventory tracking system at the outsetfrom the start, and check it daily to see what is moving and what isn’t.

 

By taking a few minutes out of your day to keep track of the inventory, you can increase your sales and stop wasting money on stocking items that sit on the shelves.

The successful businesses take inventory management seriously.

A properly set up and regularly monitored inventory management system positively influences the business.

Being systematic is important to ensure that the process is uninterrupted and under constant control.

 

Solution 5.2: Test and improve.

 

Even if you have some inventory management system in place, it’s still a requirement to maximize its efficiency by researching and testing new methods continually.

Some approaches may seem good at first glance, but they won’t necessarily work for you.

So, you basically need to try things out to see how they work for your business.

Find something that seems a likely fit, stick to it and keep improving it on a constant basis.

Once it has proved to be successful, try to automate the whole inventory management process.

To start, you can check these 3 popular inventory management techniques explained by Fishbowl:

 

 

…and this infographic from Tradegecko:

 

Inventory Management Techniques

 

Solution 5.3: Automate.

 

Once the successful systems have been created, try to automate them as much as possible.

This will provide you with many added benefits including speed, real-time analytics, low costs and fewer manual errors.

Automation can be successfully achieved with inventory management software, so let’s move to the next solution.

 

Solution 5.4: Use inventory management software.

 

Consider using inventory management software for automation, higher performance and faster growth.

If chosen carefully and correctly, good inventory management software can help you in many different ways including saving time, selling more and providing better control over the whole process.

There are many online inventory management solutions out there. Choosing the right one is again a matter of testing.

To start, you can check these online solutions to see if they work for you:

Tradegecko
Unleashed
Megaventory

Solution 5.5: Hire inventory control personnel.

 

If your business is too dependent on inventory management, then it can be a good idea to experiment with hiring specialized inventory control personnel.

This might look like an unnecessary cost at first glance, but investing in your inventory management team may prove itself in the long run.

 

Solution 5.6: Make inventory checks more frequent.

 

When you experience difficulties with inventory management, then it makes sense to make inventory checks more frequent.

This will help you to anticipate and detect problems faster and cure them accordingly.

6. Over-Investment in Fixed Assets

 

By investing too much in fixed assets, you lack the flexibility to make the necessary changes as your company grows.

Fixed assets need to be rigorously researched in terms of what is necessary to invest in and not spend anything more so that you do not overcommit.

There are many aspects of running a business that require having the funds available to make necessary changes. Putting too much into fixed assets compromises your control over your finances and exposes you to greater risk.

 

Solution 6.1: Understand your objectives.

 

Investment in fixed assets should be laser focused on your business goals.

Unnecessary purchases are not something that a truly promising business should tolerate.

Invest in a fixed asset only after you fully understand your objectives.

Make sure you have this matter covered in your business plan (this involves an in-depth research on the topic before you make the actual investment).

 

Solution 6.2: Get (expert) advice.

 

Refer this question to your business mentor if you have one, or alternatively try to speak to someone with practical industry experience.

In the real business world, lots of things cannot reasonably be foreseen or predicted before you actually dive in.

That is where people with relevant experience can help. They can provide you with helpful insights on industry-specific fixed assets.

It’s very easy and typical for a small business to fail for this reason. Thus, the external point of view on fixed assets is often critical for building a successful business. If done right this will save you from failure or at least mitigate the business failure risks.

Generally, the value of unbiased business advice is often discounted by business owners.

It’s a fact that you never know what kind of information you’ll get from others until you go and ask them.

Just take this as some sort of competitive advantage.

Go and ask what people know and think. Then simply use the information you get for the benefit of your business.

 

Pro tip: Filter any information you get from people, including your highly-trusted sources. Always distil the information through your innate common sense, intelligence, knowledge, and personal experience.

The business and industry knowledge that you’ve possibly managed to acquire already comes to your help here.

If have no proper or prior knowledge, then refer to the solutions provided in the first section of this article (Lack of Experience).

 

Pro tip 2: Do not limit your sources only to people you know in real life. Leverage the power of online communities. Ask questions on Reddit and Quora and get to know what a broader audience thinks.

 

Remember to be highly specific to get the useful feedback.

Include as many details as possible in your questions. Broad messages are likely to bring similarly vague and general comments that are usually not helpful.

 

Solution 6.3: Invest in innovative and latter-day assets.

 

Fixed assets can be different.

Time flies, and often the best thing that was out there a month ago, can be already outdated today.

So, try to come up with the most up-to-date, long-lasting, efficient and flexible fixed assets. Along with cost also look for durability, quality, liquidity and other relevant factors. Invest some extra resources now (such as more research and time) to realize long-term benefits.

Consider different alternatives and try to pick the best.

Every right decision you take today keeps saving you pennies in the long run.

The small things tend to accumulate over time.

So, this usually translates into higher winnings with the passage of time.

 

Small things tend to accumulate over time. Click To Tweet

 

Solution 6.4: Invest in liquid fixed assets.

 

You must admit the probability of things going wrong.

At some point, you might want to sell your fixed assets for any reason.

So, it makes sense to invest in the most liquid assets that are available on the market at the time of purchase.

This will make your life a lot easier if something goes wrong, and it can help to redeem your business from potential failure.

 

Solution 6.5: Stick to your business plan

 

A clear-cut business plan shall cover the fixed assets part.

If you don’t have a business plan, then read our article on How to Start a Business to write a good one.

Once you have a reliable business plan make sure you actually stick to it.

This will help you to stay within the reasonably defined investment limits.

7. Poor Credit Arrangement Management

 

This can manifest itself in different ways from not qualifying for additional loans, mismanaging funds, or failing to see the higher interest rate associated with poor credit.

For those who are starting up a small business and taking out loans, the interest rate will often be based on credit rating.

A single percentage point adds up to hundreds, if not thousands of dollars in extra expenses that do not go towards helping your business get off the ground.

The credit rating is the backbone of your loan acquisition efforts. It needs to be as strong as possible so that you can get the best interest rates. It helps if you can raise money from other sources to keep your borrowing down to a minimum.

In any event, the arrangement management you apply to your credit will play a significant role in the success of your small business efforts.

 

Solution 7.1: Do not handle credit arrangement on your own.

 

If you are not a financial professional then handling your credit arrangements on your own is not the best idea.

Credit mechanisms can be different and they are often hard to understand or manage.

Therefore, it’s highly recommended to seek advice from an external financial advisor or your mentor before taking any loans.

 

Solution 7.2: Try to avoid credit where possible.

 

Although credit gives you a nice boost, you still have to repay the money.

If you are not sure that you will effectively use the instant access to an increased purchasing power that credit entails, simply do not take it.

Don’t arrange any credit that you do not really need.

Even too much funding can harm your business.

Nine times out of ten you need less money to start your business than you might think.

Don’t make the mistake of borrowing money to fuel your business for the next five or ten years – usually you only really need enough money to make progress this year (plus 25% for unexpected expenses).

In other words, avoid credit where possible!

Building a business without getting involved in any sort of credit may take more time and effort, but running a self-sufficient business that does not need to pay anything out is a beautiful thing.

 

Self-sufficient business that does not need to pay anything out is a beautiful thing Click To Tweet

 

Solution 7.3: Consider other available financial mechanisms/tools.

 

Although the small business loan is probably the safest way of funding your business, there are still a few other financial mechanisms that might work even better.

In case you reasonably need extra capital don’t immediately go for a standard loan. Instead, research the other available funding options and go with something that matches your situation the best.

8. Personal Use of Business Funds

 

Admit it.

Too many business owners are tempted to take money out of their business accounts and spend them for their own use.

Given that the failure rate for small businesses is tied directly to how they spend their money, any of it that goes for personal use is taking away from the bottom line.

Tight management of the funds is crucial, especially in the first year of business. Therefore, there should not be any funds diverted for personal use during this critical time. Once the profits start rolling in and the loans have been paid, then you can reasonably reap the rewards of your efforts.

 

Solution 8.1: Make a clear distinction between you and your business.

 

Your business and you are separate (often physical and legal) entities. So, the funds your business owns is not the money you own unless those funds are duly transferred to you (as to a legitimate business owner).

Although it’s slightly hard to make this distinction when you operate as a sole trader, it is still very important to understand this.

Your business is not you; it just operates for you.

If you mix things up, then chances are that you’ll hinder your business instead of helping it.

So, make a rule to take any money out of your business only when it is financially and strategically justified.

 

Pro tip: On the contrary, throwing too much money into your business for no reason can be another potential mistake. Do not subsidize your business for no solid reason. Avoid investing extra cash to diminish its deficiencies.

Your business must stand on its own feets and become self-sustaining.

Accurate business data is critical in making the necessary improvements.

Too much help may cause subsequent failure.

 

Solution 8.2: Keep separate accounts.

 

Keeping your personal and business accounts separate will help you to not mix things up.

Below is the video by Nina Kaufman explaining why mixing your money is not a good idea:

 

 

Solution 8.3: Follow your procedures.

If you have specific procedures or rules for taking money out of your business – follow them.

Even if there are no penalties for the violation.

In case you do not have any procedures, but feel like it might help you – create them.

No need to make something fancy here. Even the most basic and straightforward procedures/rules may work.

In the end, it’s not the procedure itself but the compliance that matters.

 

Solution 8.4: Make sure all transaction between you and your business are at arms-length.

 

As you have separated your own personality from your business, now all transactions between you as an individual and your business as a business entity must take effect at an arm’s length.

This is important to ensure that the big picture of your business is not irrationally distorted.

 

Solution 8.5: Pay yourself a reasonable salary.

 

Pay yourself a reasonable salary that suits your business position.

Take money out of your business in the form of dividends instead of a salary or vice versa depending on your tax and financial situation.

Make sure that in all cases your salary is rational.

%

Failure rate for the fastest-growing companies in the US

Unexpected growth can destroy your business.

Do not repeat the mistakes made by Starbucks, Krispy Kreme, Pets.comCrumbs Bake Shop, Wise Acre Frozen Treats and others.

While many small business owners would love to have the problem of too many people purchasing their products, it can create the unusual situation of not earning enough money to expand the business to cover the additional demand.

This is particularly true for manufacturing firms that must purchase new equipment and add new space to keep up with the sales.

This is more of a business model issue, in the sense that most planning revolves around projections for a steady growth in sales.

If the demand should spike unexpectedly, it puts the business in the unusual situation of not having enough capital to expand and meet the demand.

 

Solution 9.1: Define if the unexpected growth is temporary or long term.

 

It is best to simply work with what you have as long as possible to see if the spike is temporary or long term before making any decision.

If this is a temporary phase, then the necessary adaptation should also carry an interim character.

You have to be able to return quickly to your previous state without negative consequences.

 

 

Solution 9.2: Get prepared by educating yourself and educating/empowering employees.

 

If it’s clear that the growth is dependable, then you might consider investing more resources to adjust to it on a long-term basis.

Probably the best thing you can do is to educate yourself and your employees about the upcoming changes. This will save you from adverse effects that the adjustment can bring to your business.

Jumping into rapid growth without being well prepared, or even worse without really knowing what exactly you are doing can be fatal.

 

 

Solution 9.3: Go ahead with a growth strategy only.

 

It is highly important to have a clear plan before you enter into a phase of rapid growth. Combine the education part discussed above with creating a detailed strategy, and you’ll be safe in most cases.

 

 

Solution 9.4: Control costs and debt.

 

The riskiest part of unexpected rapid growth is the finances.

You do not want to fail when it comes to costs and debts.

Any financial mistake you make directly affects your cash (and the impact is even greater with higher growth rates).

As you already know, cash is the lifeblood of business.

If finances are poorly managed during the rapid growth phase, the chances are that the business will fail very quickly.

 

 

Solution 9.5: Beware that fast-growing businesses need to be managed much more carefully.

 

Keep in mind that fast-growing business should be managed in a more intense way. Be ready for this.

In case you are not sure that you can make it, simply don’t go for it.

Instead, focus on a slower but stable and safe growth strategy.

10. Competition

 

It can be quite difficult for small businesses that are just starting up to survive against established competition.

The most common failures happen when not enough research is done in the field to see if there is any room for a new business in that industry.

While it is true that several businesses in an industry is indicative of consumer demand, it is also often the case that the established businesses are already handling most, if not all of what customers want.

 

Solution 10.1: Defining the potential to sell.

 

Research is crucial to see if the demand is sufficient for a new business to enter the market.

After all, the key to running a successful business is not the effort to sell a product, but finding a product that sells.

 

Solution 10.2: Finding gaps. 

 

Consider the growth rate and location of the competition to see if there are areas in your community that are not being properly served.

 

Solution 10.3: Accepting the challenge.

 

Calm down and understand that competition is a part of business and it’s up to you to leverage this for your benefit.

Accept the challenge, and this will correctly change your mindset.

 

Solution 10.4: Competition as a part of business plan.

 

Dealing with competition must have been part of your business plan. If so, then stick to it.

However, if you have missed this part during the planning stage, then the first thing you want to do is not to take spontaneous decisions. Instead, research your competition and prepare a solid strategy to overcome it.

Here are a few quick tips to help you with your strategy.

Competition in the context of business planning is a relatively broad topic and obviously out of the scope of this article. For better results, we recommend researching this on an individual basis or simply moving to Solution 10.7.

 

Pro tip: The best way to research your competition is to become a customer. Buy from your competitors to identify their strengths and weaknesses.

 

Solution 10.5: Sharing with competition.

 

Realize there is plenty of business to go around for everyone, even in a saturated market.

While you want more and more of that market share, the fact is that you probably couldn’t handle one hundred percent of it. So be nice and share as long as you get enough to keep going.

This however does not mean that the business should stop competing at any point.

Business is a non-stop growth machine in essence. Once stopped it starts to go down.

 

Business is a non-stop growth machine. Once stopped it starts to go down. Click To Tweet

 

Pro tip: Implement a two-fold approach towards your competition.

  1. Identify the best and the worst things your competition does.
  2. Match this with what your business does.
  3. Adopt the best aspects of your competition that your business lacks and get rid of the worst ones.

If implemented correctly this strategy will help you to double win your competitors.

 

Solution 10.6: Focus on your business.

 

This is an alternative approach to dealing with competition.

The idea behind this is that the more you focus on your competition, the less your focus will be on your own business.

More time spent dealing with competition = less time spent improving your own business.

 

More time spent dealing with competition = less time spent improving your own business. Click To Tweet

 

 

Blackberry’s futile attempt to compete with Apple and Google meanwhile moving in quickly to capture the smartphone market is a good illustration of this formula.

When BlackBerry finally did launch a touchscreen device, it was seen as a poor imitation of the iPhone.

Too much focus on competition laid the ground for Blackberry’s subsequent failure.

In Q1 2009 BlackBerry owned 20.1 % of global smartphone OS market share.

This is how the market shares look as of January 2017:

  • Android 63.99%
  • iOS 32.03%
  • BlackBerry 0.49%
  • Other 3.49%

The universal solution: do not accept failure

 

In the end, anyone who starts up their own business will need to take all the major risks into account to have the best chance of success.

Preparation is one of the keys to success when starting a small business.

While you cannot take everything into account before you begin, by being prepared for the most common reasons of failure, you can improve the chances that your small business will be successful.

By focusing your efforts on running a tight business model, you can avoid many of the pitfalls that cause small businesses to fall apart.

As we see from the research above, all major reasons for new business failure are somehow interconnected, and almost all of them point to the same roots: poor planning, incompetence, lack of persistence.

The success of your small business will ride in large part on the effectiveness of your planning and research, and keeping overheads at levels that allow your products or services to be purchased by the public.

The more work you do before launching your small business, the better chances you have of enjoying success.

The sole reason for business success is the entrepreneurs themselves.

If you refuse to fail, you won’t fail.

As Adeo Ressi (The Founder Institute) puts this into words: there is only one reason why the business fails – it’s when the entrepreneur gives up.

That’s it.

Period.

[spacer height=”30px”]

We’ll be glad to hear your thoughts!
Please share them in the comments section below.

Pin It on Pinterest