How to Futureproof Your Business

The U.S. Small Business Administration discovered that approximately 33% of small businesses collapse in their first couple of years of operations. In most cases, these situations are unavoidable, but there are also occasions when correct planning and strategies could prevent businesses from failing, regardless of the state of the economy.

If you are a new entrepreneur and require some help and advice on how to prevent your business from collapsing over the first few years of trading, you have come to the right place. This guide will give you all the information you need to know on how to overcome small business failure and achieve long-term success:

Keep detailed records of your business activities

As a business owner, it’s likely that you’ll have a large number of tasks to complete on a daily basis; therefore, it would be in your best interest to keep accurate records so that you’re fully aware of how your business is functioning. You’ll also have a clearer idea of your business’s financial situation so that you’re able to make suitable decisions at the correct time before any problems escalate. Keeping accurate records will not only make your life easier, but it’s also a legal obligation to present them at the end of the tax year as proof of your profits and expenses.

Better manage your cash flow

As briefly mentioned, being aware of your financial situation is essential for your business to stay afloat – in the early days when profits may be sporadic. If you don’t actively manage your cash flow, there’s a high chance that your business will start to decline and potentially fail. As a preventative measure, ensure that invoices are sent to clients as soon as possible and chase payments when due, so you’re able to pay bills and contractors on time and re-invest capital where necessary.

Invest in cybersecurity

Cybersecurity is of high importance to all businesses especially those that use laptops and PCs daily to record and store sensitive information. Unfortunately, the threat of cybercrime is on the increase and has cost businesses billions of dollars as a result. To protect themselves against criminal activity, businesses are now investing in new methods to protect their private information and files. Zeta Sky is an IT specialist trained to manage your business’ IT system and resolve threats and issues as soon as they arise.

Be a strong leader

A leader is responsible for ensuring that all employees are actively engaged with their tasks and respect the ethics of the organization. Without guidance, employees may try their luck and be as inefficient as possible during the working day, which not only damages productivity but also profits.

A good leader should aim to boost employees’ self-esteem and ensure that each one is fully aware of their responsibilities and role within the business. Without a good leader, employees may lose focus on tasks, fail to reach their targets and lose sight of their ambitions. To prevent the failure of your business from being put down to bad leadership, it would be highly advisable to polish up your leadership skills to establish a healthy working environment.