For years, friends and family have raved about your mouthwatering cakes, declaring you the best baker in town. After saving up, crafting an innovative business plan, and pouring your passion into every detail, you’re finally ready to open your bakery doors and delight customers with your creations. But how can you make sure that your dream becomes a sweet success?
According to the U.S. Small Business Administration, the first three years are the most challenging for new businesses. Statistics indicate that three out of every ten small businesses will close within the first two years, and half will be gone within five years. The Bureau of Labor Statistics presents similar findings, showing that only about 25% of small businesses survive for 15 years or more.
Essential Tips for Small Business Financial Success
To optimize your chances of success, monitor your business banking and cash flow. If you have friends and family who are willing to support your business, don’t hesitate to accept their help. Moral support can often be the most valuable assistance. Additionally, it’s important to live within your means. Avoid spending excessively on things you don’t truly need. If you’re uncertain about how to grow your business, consider consulting a financial planner.
“I wish I had spoken to…a C.P.A. with small-business expertise,” said Elizabeth Kavanaugh in a New York Times interview. Her printing company, Large Format Digital, filed for bankruptcy after a $1 million construction loan left her business with too much debt and insufficient customers. “It was literally like someone turned off a faucet.”
Make sure you have a plan in place to address potential problems. These can range from situations like a fire, data breach, or natural disaster to a protest that temporarily or permanently disrupts your operations. If your vendors go out of business or your customers begin switching to competitors, it’s essential to have strategies and backup options to protect your investment. Explore alternative methods for funding and advertising, and be sure to ask your clients about their preferences and dislikes regarding your business.
Don’t hesitate to make adjustments or even eliminate aspects of your business that aren’t yielding positive results. It’s far more beneficial to recognize and address a misstep than to risk becoming part of the number of small businesses that closed their doors last year. If you find yourself in need of guidance or support, remember that you’re not alone—My Bank is readily available to offer expert financial advice tailored to your needs whenever you require assistance.