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What it takes to Survive as a Small Business

Posted In Technology Reviews - By Techtiplib on Saturday, June 1st, 2013 With No Comments »

All of the most successful business enterprises around the world started out as small businesses.

However, statistics show that over 80% of start-ups fail in their first year of operation, and over 50% of those who survive the first year fail within 5 years. So, what does it take for a small business to survive the first trying years and eventually grow into a large successful enterprise?

One of the most important components of the modern business place is communication and technology. You need to communicate with your customer base in order to get orders. You need similar communication with suppliers to ensure that your product delivery chain is uninterrupted. You need internal communication to tie up all the processes between receiving supplies or data and delivering the final product.

Ethernet services are the preferred data communications medium in most enterprises due to flexible bandwidth and ability to operate at peak performance for extended periods of time. Ethernet easily interconnects with existing equipment in the local and wide area networks connecting you to your customers, employees, applications, suppliers and other business partners.

Internally, emails have been the preferred form of communication. At its bare bones least the communication platform should support emails. Ethernet supports modern video, voice and data applications on a solid platform.

First you have to have something
A business plan is indispensable for any entrepreneur who wants to succeed. It acts as the roadmap for your business, providing a benchmark against which you measure the business’s performance over time. Small businesses need business plans just as much as if not more than large enterprises. At its simplest, a business plan should have a marketing, operations and financial plan. 

Market
Your market is the life-blood of your business. A small business will definitely fail if it does not meet the needs of its market profitably. You should understand the needs of your market, its location and its demographic characteristics.

Publicity Plan
Your marketing plan should include a communications plan. Web-based advertising will most likely feature in the plan. This form of leveraging the power of internet advertising has proven to be cheaper and more efficient than traditional marketing.

Operations
Your operations ensure that you deliver goods and services to your market.

Your operations plan should be geared to meeting the needs of your market through the most efficient business cycle. An efficient operational strategy guarantees that your business generates sufficient cashflows to meet its recurrent expenditure and investments.

Financial Plan
The financial plan is the roadmap that shows how your business raises funds and invests these funds to generate profits. If your business is financed using credit, the financial plan should include a plan of repayment of the credit. Inability to meet credit repayments is one of the main causes of business failure as lenders move to secure their funds by instituting winding up proceedings against a business.

Most importantly, all of these plans have to be actionable. Internet services provide a medium on which business operations can be integrated across all of these functions.

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