What is the current business’s survival rate? In the U.S. Small Business Administration Office of Advocacy’s report on October 2020, an average of 67.6 percent of the new employer establishments survived for a minimum of two years between 1994 and 2018. The 5-year survival rate was 48.8 percent during the same period, less than the threshold of 50%.
Being able to survive the first five years of the business world is a significant achievement. Entrepreneurs who reach this point usually learn several lessons through the course of their journey, encounter obstacles and setbacks they may not have anticipated. They find out the qualities they have and experience unexpected wins that result from the hard work of others.
GOBankingRates interviewed six entrepreneurs who had reached their five-year milestone on the lessons they’ve learned while in business. Find out more tips and insights.
Treat Customers With Kindness
After years of freelance graphic design and sales for telecoms, Roberta Perry, owner of Scrubz Body Scrub, Inc., was able to utilize everything she had loved and learn from business and about people to develop products and a company that she was happy and humbled by.
From the very first year of business, Perry said she recognized that treating people with compassion was why they were able to stand apart from others at trade and craft fairs and craft shows.
“Customers are the lifeblood of any business, but most especially one that involves self-care and pampering,” Perry said. Perry. “I really concentrate on the customers I have and luckily for me, they bring family and friends as well as give our products as gifts.”
No Job Is Too Small
Isaiah Henry is the CEO of Seabreeze, an organization that manages properties. Henry is, a professional with more than a decade of experience in managing community associations and property management, has realized at an early age that it’s essential for executives to be active in all aspects of their operations.
Before he was appointed the CEO of Seabreeze in 2017, Henry was a business division leader, senior vice president, and Chief Marketing Officer.
“Each role taught me something that I’ve been able to apply to my current role, which is why I think it’s crucial for leaders to be involved in every aspect of their company,” Henry said. Henry. “No task should be thought as too small to accept. This allows you to help develop corporate goals and initiatives for growth as you know the entire company.
Invest in the Right Tools
Chelle Neff is the founder and CEO of the hair salon Urban Betty. Neff established Urban Betty in 2005 and stated that it was soon apparent that the right tools were needed for running the business.
Neff explained that this realization was made after the company hired its first employee and had to manage payroll.
“I realized that the financial management software I’d previously chosen was not able to allow me to pay my employees and I needed to expand my capabilities. It seemed like I’d worked the financial instruments before I began my business, but I’d already outgrown the tools,” said Neff.
Neff switched to QuickBooks and hasn’t been back since, significantly as the business is growing with two locations and the possibility of adding a third.
The appropriate tools can accomplish the task and help the business owner save time and effort. The right tools and platforms to help your business to grow your company.
Build a Great Team
Jesse Crow, the owner of the online seller Rest Right Mattress, started the company in 2016. The business wouldn’t be the place they are today without their skilled team, which is a lesson Crow claimed he was taught early on.
Crow says it can be challenging to trust the people who hold the greatest joy and pride in your company as a business owner. If you can develop trust and create an effective team of the right people, your company can grow into a more significant business and provide an outstanding customer experience.
Don’t Hesitate To Delegate.
Juan Dominguez, CEO of the law company The Dominguez Firm, has been an entrepreneur for over 30 years. Over the years, Dominguez said he had gained a lot of knowledge about managing people, business development, and leadership.
Perhaps the most crucial lesson that Dominguez has learned was not to be afraid of giving his hats when the time comes. This is particularly true for those who own an attorney firm and are hiring their first paralegal. This decision, Dominguez said, was well worth the effort.
“When you’re just starting out as an entrepreneur it seems like you have infinite energy to tackle anything. At times, it can think that no one else could do anything better than you do. For a business to thrive and survive it is essential to establish procedures and systems which allow you to concentrate on the things that require your attention to the max,” Dominguez said.
Transferring responsibility to the right people helps free up time for the business owner. They can use this time to grow the company, establish crucial relationships, and continue serving the customers and clients.
Ask for Help
The most valuable advice Jeremy Yamaguchi, CEO of lawn care services firm Lawn Love, learned during his first five years of business was that it’s OK to seek assistance. After a year of his business venture, Yamaguchi said he suffered severe burnout and ended up seeking urgent care due to the belief that the doctor was sick.
“As an entrepreneur, you often put a lot of pressure on yourself to perform highly, find success and overcome barriers all on your own,” Yamaguchi said. Yamaguchi. “You think that asking for help is a sign of weakness, or even a sign that you aren’t cut out for entrepreneurship.”
The need to seek help is vital when you’re running a business. Yamaguchi claimed that after he asked for assistance in the past, he was able to recuperate, get greater strength, and achieve his goals.