Remaining Rigid & Expanding Too Fast
Once you’ve done the planning, established your business, and gained a customer base, don’t become complacent. The need that you’re fulfilling may not always be there. Monitor the market and know when you may need to alter your business plan. Being on top of key trends will allow you lots of time to adjust your strategy so that you can remain successful. One must only look at the music industry or Blockbuster video to know that successful industries can undergo huge changes.
Now that your business is established and successful, it’s time to expand, but you must treat the expansion like you’re starting all over again. If you’re expanding the reach of your business, make sure that you understand the areas and markets into which you’ll now be reaching. If you’re expanding the scope and focus of your business, make sure you understand your new products, service and intended consumer as much as you do with your current successful business.
When a business expands too fast and doesn’t take the same care with research, strategy, and planning, the financial drain of the failing business(es) can sink the whole enterprise.
Though the rate of business failure in the first two years is around 20%, it doesn’t mean that you have to fail. Through research, planning, and flexibility, you can avoid many of the pitfalls of a new business and be a part of the 25% that make it to 15 years and beyond.