Here’s something that will uplift your spirits. A new study (PDF, 26 pgs) conducted by the Small Business Administration (SBA) has revealed that the survival rate of small businesses has improved.
Survival rates over the five-year period were similar for the different size classes, except the smallest. The survival rate for establishments with 4–7 employees was 75.3 percent; this rate slowly rose to 84.2 percent for the 512–1,023 size class. Even small size classes had relatively high five year survival rates, 61.4 percent for one-person establishments and 70.1 percent establishments with two to three persons.
Isn’t that wonderful? Of course, but the big challenge now is how to survive the first five years. To supplement our initial post about survival tips, check out these new weapons against failure:
- Stay focused on your goals and objectives. Exercise scenario planning to anticipate possible reaction of your competitors and develop contingency plans for potential problems.
- Be patient. Do not obsess with the idea of overnight success because it does happen to all of us. Slow and steady is the way to go.
- Increase repeat purchase. Get your customers hooked with your products by developing effective marketing campaigns and promotional gimmicks. Find ways to win back lost customers.
Via The Small Business Blog
