On average, about two thirds of small businesses survive the first two years, half survive five years, and one in three 10 years, according to the National Federation of Independent Business (NFIB). After the most difficult (and most volatile) first few years, survival rates flatten out. Keep in mind that not surviving doesn\u2019t necessarily mean failure, either, because a business could be sold or merged with another, according to NFIB.<\/p>\n
Many Woodland Park small business owners are excellent examples of how America is built.<\/p>\n
If you live here long enough and we have, since 2002, we have seen entrepreneurs make our mountain community a favorite to live, work and have fun in.<\/p>\n
Business owners who choose to start in our town can put their heart and soul (and financial\u00a0savings) into a new business\u00a0only to have the following predictable mistakes derail their \u201cdreams\u201d for success.<\/p>\n
Here are five key mistakes that each new business owner should be aware of.\u00a0 Plus, we have provided recommendations based on our 11 years in business assisting small business clients.<\/p>\n
First,\u00a0being cheap.<\/em> For each dollar you save you might increase that smile on your face. However, if you get too carried away with saving money, you might end up losing opportunities and customers as competitors make changes to meet demands. Set aside 10%-15% of your operations budget to respond to changes in consumer demands.\u00a0 Also don\u2019t forget to explore every possible avenue for free (or nearly free) funding.<\/p>\n Second,\u00a0refusing to hire those\u00a0who might be\u00a0smarter than you.<\/em>\u00a0 Yes, an employee might know more than you about a particular aspect of your business. Great! Let them do what they do best.\u00a0 I can tell you that skills listed on a resume don\u2019t always create productive teams.\u00a0 So, be sure and build teams that work well together. Collaborative teams are much more effective than individual stars.<\/p>\n Third,\u00a0can\u2019t make priorities. <\/em>This is where you need to become a gold medalist.\u00a0 There is always so much to do and little time to do it.\u00a0 I was once told when the list of things to do was so overwhelming \u201ceating and sleeping was a sign of weakness\u201d.\u00a0 I don\u2019t agree.\u00a0 You need to stay physically fit.\u00a0 So, pick one priority and focus on it and rank order the remaining.<\/p>\n Fourth, your ego. <\/em>Yes, it can get in the way. You can\u2019t control everything or be the best at all critical business components.\u00a0 We find business owners who believe, for example they can do their own PR and marketing. Statistics show otherwise with many unsure how to integrate PR into their business or grasp how to keep their reputation intact during a crisis. \u00a0So, yes, it is important to know when you\u2019re stretched and need help.<\/p>\n Fifth, the signs<\/em>.\u00a0 You either didn\u2019t see them or chose to avoid them.\u00a0 Common signs for failing include small levels or lack of cash, inability to pay back loans on time, inability to pay suppliers on time, customers that pay late, loss of clientele, ill prepared for a crisis and an unclear business strategy.<\/p>\n Finally, much\u00a0can go wrong when starting a business. \u00a0It might shock you, but failure is a part of business.\u00a0 Learn from the missteps and structure your business to make the most of it for future success.<\/p>\n (Source: \u00a0Initial printing in Woodland Park Living, July 2022)<\/p>\n Michael B Perini, ABC, is president of Perini & Associates, a full-service public relations and marketing firm based in Woodland Park.\u00a0 Best of Teller Award 2022, 2021 and 2020. FAA Certified Drone Pilot. Military veteran. Reach Mike at customerservice@periniassociates.com.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" On average, about two thirds of small businesses survive the first two years, half survive five years, and one in three 10 years, according to the National Federation of Independent Business (NFIB). After the most difficult (and most volatile) first few years, survival rates flatten out. 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