How to Start and Manage a Successful Business

1627 Words7 Pages
The high failure rate of business start-ups has become common knowledge over time. According to the study by Van de Ven, Ar, Hudson, R and Schroeder (1984), the survival of a business over a short-term period of about a year and half is 54% and 25% over a period of six years. This means that the failure rate of business start-ups is a high 75%. Although studies show that business start-ups have a high failure rate, strategic business and financial planning, good management and marketing skills are important factors to consider to avoid failure and to be a successful business. As an aspiring entrepreneur that wants to start a new business, they have to make sure that they have a well thought out business plan. Planning is the most…show more content…
The usual start-up costs involve a start up fee for the business, down payment or rental for the building on location, inventory, utilities, insurance, etc. Because there is a wide array of businesses to choose from, every new business’ start up costs will vary. Some of the start up costs will include one-time fees and on-going fees. Consulting a financial planner would be very helpful and beneficial during this stage and through the on going stages of the business. One of the main purposes of a business is to make money; therefore, consulting with a financial planner will provide financial strategies to help the business grow and increase revenue. The third stage in a new business start up is management. Having good management skills are important to the success of a business. A business needs good leadership that will move the business in the right direction towards growth and success especially through the changes that the economy experiences. A manager and leader, need to get their employees to trust and believe in them, and what the company is about, so that they can move forward together towards the same goal. Communication skills are very important to have because this will help to build rapport and trust with the employees and to be aware of the problems that they may experience on a day-to-day basis. As a new company, being aware of these problems may even
Open Document