Essential Tips for Starting a Business: How to Ensure Longevity and Sustained Growth

Launching a business is an exciting step for many entrepreneurs. It’s the result of years of planning and, if you play your cards right, can put you on the path towards financial freedom and generational wealth. 

However, data collected by the Colorado Secretary of State shows that 175,650 new businesses started in the state in 2022 — many of which are doomed to fail due to unseen challenges. 

Defy the odds and start a successful business by accounting for these challenges before it’s too late. Even a little planning and preparation can help you dodge issues like lawsuits, financial mismanagement, and low customer retention. 

READ: Top Tips for New Business Owners to Empower and Guide Their Teams to Success

Finances to adapt

Many firms start life with the goal of solving a common problem amongst consumers. This is a noble, profitable goal as most customers will pay a premium for a product or service that makes life easier. However, the problems that you seek to solve won’t be around forever — particularly if you’re operating in a field like marketing or technology. Eventually, a bigger business will enter the market and shut the door that your firm worked so hard to open. 

Secure your firm’s long-term by starting a financially sound, innovative business. Innovative small businesses are stronger than their competitors and more profitable in the long run. They set aside capital for experimentation and have a strong enough credit profile to strike up fresh funds should they need to suddenly pivot towards a new product. 

Protect your personal and business credit profile during the early stages of your entrepreneurial career. Build up your trade accounts with vendors and use business credit cards to build your score and improve your ability to raise fresh capital should you ever need it. 

Data protection 

The global average data breach costs a business $4.45 million — that’s more than enough to sink most small businesses. However, few new business owners take time to ensure that their customer’s private data is kept safe from prying eyes. 

You can protect commonly stolen types of data, like account log-ins, by taking cybersecurity seriously from day one. Use two-factor authentication on all work devices and log on to a VPN whenever you’re handling sensitive information. If you collect private financial data, be sure to use encryption programs that will protect you against malicious actors. 

As your firm grows, consider bringing on a team of cybersecurity experts or outsource your cybersecurity to a trusted team. This will minimize the risk of lengthy, expensive lawsuits and focus your efforts on building your brand. 

READ: Ensuring Business Survival — The Vital Role of Cybersecurity for Small Businesses

Customer retention

New businesses are almost always well-received at launch — but how do you plan to keep folks coming back after their first purchase? 

Improve your chances of securing long-term success by tracking the customer experience. If you run a business from a physical location, survey the folks who come into your store. If you primarily sell your wares on the web, use key data points like bounce rate and engagement to determine whether or not customers really resonate with your branding. 

Use the insights you gather to give your next marketing campaign a clear direction.

If, for example, folks say that they like your product but can find similar wares at a lower price, you should probably run a campaign that highlights the superior quality of your product. This will help customers understand your brand while you build a loyal consumer base amongst folks who are willing to pay for the finer things in life. 

The bottom line

Starting a business requires plenty of planning and preparation. Put yourself in the best position to succeed by increasing your working capital and improving your credit score. This will help you raise funds when you need to pivot and can protect you should you ever face a data breach. As your firm grows, be sure to reinvest your profits into things like customer retention, as this will secure the long-term profitability of your firm. 

Indiana Lee is a writer, reader, and jigsaw puzzle enthusiast from the Pacific Northwest. An expert on business operations, leadership, marketing, and lifestyle, you can connect with her on LinkedIn.