Small business optimism is still on the rise which is great news for both employers and employees alike. Unfortunately, statistics show that only 50% of small businesses survive past the fifth year of operation. So what are owners doing wrong? Your Bookkeeping Department is here to shed some light on this phenomenon, helping you with a few tips on how to avoid making the same mistakes so your business can keep thriving.

Plan Ahead By Researching Your Market and Competition

Small Business Target Market
When it comes to small businesses, it’s important to expect the unexpected. Many businesses fail because owners aren’t able to adequately address new challenges as they arise. In order to go beyond the first few years of operation, make sure to create a comprehensive business plan before setting up shop.

Your plan should include extensive research of your target market, including demographics, behaviors, geography and psychographics which includes lifestyle and values. You may think you know who you’re looking to sell to, but through research you’ll realize there’s a lot more to know. Your Miami Beach bookkeeper also reminds you to examine the competition, because they can dramatically affect the future of your business.

Planning also comes in handy when you decide to expand your business. A lot of entrepreneurs try to grow way too quickly, and end up in complicated financial situations. That’s why planning and thoroughly researching prior to following through with your plans pays off in the long run.

Learn How to Delegate Small Tasks

Small Business TasksAlmost every entrepreneur suffers from the same problem: the urge to control all sides of the business. From payroll to customer service and logistics, you may think keeping all of the control in your hands equals more money in your pockets. The reality is quite the opposite. It’s better for you to focus on what you do best and hire skillful employees to do what they do best.

Besides learning how to delegate, it also helps to hire a specialist to do certain jobs like bookkeeping. A virtual bookkeeper, such as your own Miami Department, can help you save money and time by allowing you to focus on your strengths as an entrepreneur. Instead of spending your time on running payroll, account reconciliations, collecting payments, and other daily bookkeeping activities, you can concentrate on operations.

Keep Your Small Business Relevant Online

Even if the sort of product or service you’re providing can’t benefit from an e-commerce platform, it’s extremely important to have an online presence nowadays—and to manage it correctly. Investing in a website and setting up various social media pages, such as Facebook, Twitter, and Instagram, will not only help you build your brand and image, but also help attract new customers. Social media presence is also a way for any small business owner to learn more about their audience.

SEO, keywords, Google Analytics are all important tools to help make sure potential customers are able to find your small business online. Failing to keep your website and your social media pages updated can damage your image, so make sure those are well taken care of.

Know How Much Capital Your Small Business Will Need

Many entrepreneurs tend to underestimate how much money they’ll really need in order to make sure their businesses take off. According to the DNA of an Entrepreneur Report of 2016 by Hiscox, 17% of all entrepreneurs use their own credit cards to help pay for their own small business expenses. Problems can also occur if you’re unable to manage the cash flow properly, another reason why hiring a bookkeeping company can save your small business from a series of potential dangers on your journey toward success. If you need a loan, it’s important to know what type will be the most suitable for your needs. You can also check out these 4 tips to better understand the small business loan process.

Miami Beach BookkeeperIf you’re having trouble finding the best plan of action for your small business, reach out to a Your Bookkeeping Department. Manal Oliver, founder and accountant, can act as your dedicated bookkeeper and willing partner to help you on your journey toward growing your small business.