Business success

Contributed by AlturaSolutions Communications

Startling statistics from a USA Today report reveal that 18 percent of all small businesses — such as those in the cleaning and distribution industries — fail within the first year of operation. And among those that survive, half will fail in five years.
 
"Fortunately, there are ways to prevent business failures," says Robert Kravitz, president of AlturaSolutions, a B2B marketing agency and former owner of three contract cleaning companies. "Usually, it comes down to planning and foresight."
 
Among his thoughts and suggestions for all small business owners, including those in the professional cleaning industry, are the following:
 
Plan for success. Many new business owners plan their businesses as they go. However, the Harvard Business Review reports that business owners with a formal business plan are 16 percent more likely to succeed.

Before I started my first cleaning company, I spent a Saturday afternoon with an accountant and together we developed a business plan. Every new business owner can do the same. The plan becomes a roadmap for starting and growing your business.
 
Money management. Many business owners are visionaries; money management bores them. But even visionaries must focus on cash flow and cash reserves. The U.S. Chamber of Commerce recommends having a rainy-day fund of three to six months to cover necessary expenses.
 
Invest in your team. For many new business owners, working with employees is an entirely new experience. However, a strong team is the backbone of your business. To develop a team, first invest in yourself, learn how to work with employees, and then invest in worker training and development.
 
Keep looking ahead. Too much focus on daily activities means you may not see new business opportunities or changes in the marketplace. Kodak developed digital cameras in 1975 but believed the market would never take off. They were wrong. By the 2000s, everyone wanted a digital camera. After 143 years in business, Kodak declared bankruptcy in 2012.
 
“New entrepreneurs should consider working with a business mentor or advisor," says Kravitz. "Some business associations offer mentoring services. They helped me and can help you so you're not alone on your business journey."