According to Shopify, since the pandemic began, nearly 1.5 million applications for new businesses have been filed. This is certainly good news for the entrepreneurial spirit in America. However, more businesses than you may realize actually fail each year. According to the Bureau of Labor Statistics, this rate is fairly reasonable at around 20 percent. Today, we go over how to be successful when starting a new business.
Be Mindful of Your Costs
According to the U.S. Small Business Administration, initial expenses for a small business can range from $2,000 to $5,000, depending on the nature of the business. For this reason, it’s important to be mindful of your costs as you get started. Though it’s true you have to spend money to make money, you shouldn’t overextend yourself with credit. Most new businesses operate with very small profit margins, so overdoing it with spending can be risky. Instead, spend wisely as you get off the ground to increase your odds of success.
Pay Attention to Customer Service
One of the first steps to take with any new business is to keep the focus on providing a stellar customer experience. The main reason to do this is because it keeps customers coming back. After all, happy customers are more likely to post positive reviews online, and this is what encourages more customers to come back and spread the word about your new business. Boost your odds of creating positive customer service experiences for your new customers by:
• Responding promptly to questions online
• Having a reasonable return policy
• Being timely with service—including deliveries, as much as possible
Spread the Word about Your Business
You can certainly start building a positive reputation for your business by treating your new customers well. However, you need to go a bit further by making an effort to get the word out about your business. In today’s digital world, this means engaging online, although some good old-fashioned print and radio advertising can also be effective if you’re targeting local customers. Also, it’s a good idea to:
• Have a properly optimized and well-designed website
• Claim your business on Google My Business so local customers can find it and see reviews you receive as you get off the ground
• Set up your social media accounts so you can engage with your customers
Cover Your Business Insurance Bases
Finally, be mindful of your business insurance needs to further increase your odds of growing a successful business. Expenses due to unforeseen or undesirable events have the potential to wipe out a new enterprise that’s already operating on a small budget with limited profit margins. Insurance essentials for a new business include:
• General liability coverage
• Professional liability insurance
• Commercial property insurance if you’ll be leasing or buying space for your business
• Workers’ compensation if you’ll have other employees besides yourself
• Life insurance
• Business income coverage in case you have a loss in revenue due to a natural disaster, theft, or other unexpected situation
A variety of social and economic factors are leading many people to start their own businesses, and it’s a good idea to learn from people who have done it before. Look to the professionals at Altra Insurance Services for sound advice based on years of experience in the insurance industry. In addition to business insurance, we offer reliable homeowners, renters, and auto insurance. San Diego residents can call one of our expert agents today at (619) 404-6311 to discuss their insurance needs.