Did you know that small businesses make up 97 per cent of the registered companies in New Zealand? According to the Ministry of Business, Innovation and Employment that's a grand total of 459,300 enterprises.
However, regardless of how impressive those statistics are, all businesses must survive to thrive. Figures collated by commercial information and insights firm Dun & Bradstreet show that 90 per cent of all companies that failed in 2011 were small businesses - many of which were startups.
So what can your business do to combat this? Here's the advice to follow and the pitfalls to avoid:
Don't rest on your laurels
If you are the business owner or an employee who has been involved since the conceptual stage of the company, thinking that your work is done as soon as you commence operations could prove to be a costly error.
There's no denying that it's difficult to come up with a gem of an idea and grow that it into something that actually has value to consumers, but the hard work really starts thereafter. If you sit back and relax, you'll get caught out when real issues and obstacles begin to present themselves.
Embrace change
If you are too set in your ways and have a single track mind in the early days of trading, you may find yourself struggling to drum up consumer interest. Always keep in mind that no business should be an ego project, and it's customers that drive trade.
You should allow your business plan to grow organically, and not limit it with your own personal bias.
Keep track of your finances
Many small businesses will struggle in the first few months after commencing operations as they fail to get to grips with how their capital is flowing.
Utilising small business software is a simple and effective way to combat this. CashManager from Accomplish can aid you in invoicing customers, getting to grips with corporate taxes and allow you to maintain a keen eye on the overall movement of funds in and out of your new venture.