IF YOU’RE thinking of starting your own business, you might wonder if your business will be successful. Although entrepreneurial success depends on many factors, getting only a few of them right can greatly improve your chances.
Key Takeaways
If you only take a few items away from this article, let them be these.
- Launching a successful business in 2023 is not impossible. Although the chances are slim, it is not out of the realm of possibility to earn profits.
- Is your business innovative enough to last for decades? If not, how can you make it more innovative?
- You will significantly increase your chances of success if you stay up with trends, innovate, and create solutions that will last for generations.
The Current Landscape of the World
Only successful entrepreneurs make it through the turbulent early years of business. As reported by the US Small Business Administration, roughly 70% of all new businesses survive for the first two years. After five years, success chances drop to about 50%. About 33% of businesses survive for ten years, and 26% survive for 14 years or more. According to the SBA, these trends are relatively stable across industries (with some exceptions, of course).
However, odds of success are likely much lower in 2023. The pandemic has put a strain on the world and large corporations are making it more challenging to enter the market successfully. According to the Wall Street Journal, the pandemic resulted in nearly 200,000 businesses closing in the United States. On top of that, motivation is at an all time low.
New entrepreneurs may find these statistics depressing. However, it’s important to note that launching a successful business in 2023 is not impossible. Although the chances are slim, it is not out of the realm of possibility to earn profits. Avijeet Das, a poet and writer, put it well, “Some people are born with odds stacked against them in life. But they never give up on achieving their dreams.”
The Big Guys Will Only Get Bigger and Squeeze Out Small Business
Large corporations are growing at rapid speed, making it more challenging for small businesses to compete. That’s why during a recession, small businesses must have a great business idea and find a way to attract a steady flow of new customers. They have to attract loyal customers with effective marketing strategies and market research. This, however, may not be enough to compete with large corporations.
How to Compete With Large Corporations
Consider doing these things if you’d like to be more competitive.
Be open-minded – It’s good to look for additional revenue outlets. Don’t be afraid to pivot and make room for additional streams of income. Amazon was originally a bookseller and became a major eCommerce company.
Stay focused – Besides staying open minded, you also want to stay focused. You likely won’t make much money in your first year, but you must look at the long-term horizon. It takes time for your brand to establish itself. Many small business owners fail to make any profit during the first few years because they are using cash flow to offset investment costs. This is also called going into the red. When you earn more than you need to pay your debts and payroll, you are in the black.
Change your marketing message – If you’re not making money after many years, and you’re still committed, you might have to change your marketing message. The next step is to figure out if you’re reaching the right people, addressing their pain points, and other factors that hinder growth.
Sacrifice – In addition to the above, you must be prepared to sacrifice. Getting your business off the ground is hard work; If you recently quit your 9 to 5 job, you must be prepared to work harder than before. You might have to spend less time with friends and family. Perhaps you need to sleep an hour less every night for some time. Sacrifices are a normal part of entrepreneurship. If in doubt about your decision to become an entrepreneur consider this quote of unknown source, “I would rather work 100 hours a week for myself than 40 hours a week for someone else.” Do you agree?
Look at the big picture – An entrepreneur committed to their business will consider the big picture. They will organize their daily activities to achieve their 5-year targets. What can you do today to ensure that your business will be successful in the future?
Deliver great service – A lot of successful businesses forget that excellent customer service is essential. If your customers receive better service, they’ll come to you on a regular basis instead of going elsewhere. In today’s highly competitive market, the most successful companies provide a high standard of service. This is where underselling and overdelivering different products come into use; it’s the best way for many types of businesses to survive.
Stay consistent – Consistency is important for success in business. The key to success is to do what it takes every day. This creates positive habits that will help you succeed in the long run.
The Nature of Business is Tough, But AI Will Make it Easier
Businesses are already using artificial intelligence to make things easier. Before shiny object syndrome distracts you, though, look at existing AI services and decide if they can help your business. Possible good reasons to use AI in your business include:
- To improve customer service – Some companies use chatbots on their websites to handle simple customer service issues so employees can handle issues that require more personalized attention.
- To provide product recommendations – Companies can recommend products that align with customers’ interests and keep them engaged. Tracking customer behavior on your website is a great way to customize your marketing efforts to your customers.
- To segment your audience – AI can segment audiences and create targeted campaigns for social media platforms. This helps you reach your target audience in highly competitive industries. To improve campaign effectiveness, marketers target users with data. AI helps predict your target market’s response to specific social media marketing advertisements.
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How Do You Increase Your Odds of Success in 2023?
For greater success, create an innovative business model that lasts generations. You probably didn’t think about it when you went through your checklist before quitting your job, but now you should.
Is your business innovative enough to last for decades? If not, how can you make it more innovative? Your employees or contractors, and your customer base can be valuable resources for information on how to improve. Ask yourself the following questions to determine if your company is innovative:
- How do you innovate something that lasts for generations?
- Do you have a solid business plan?
- How does your innovation compare to your competitors?
- What’s the most important thing you can do to encourage innovation in your team?
- What’s your company’s definition of success?
Will My Business Be Successful?
You will significantly increase your chances of success if you stay up with trends, innovate, and create solutions that will last for generations. If you follow the tips provided here, you stand a much better chance of reaching your target customer and surviving in 2023 and beyond.