How a Small Business Can Survive
Managing a business can be extremely daunting and not many people are willing to think about it. There are many elements to leading and having a successful business. Without out just one of these elements, a small business may fail or not be at its full potential. These elements are employees, time management, technology, business intellect, marketing, estimating pricing, expense management, and managing. These are all tremendously critical to maintain a business.
Small business survival depends on many factors. Small business owners know they must make money to survive. The key to any successful business rests on the ability to keep the money coming, to offset expenses. Many small businesses fall into the traps of excessive loans, too much overhead, or a costly advertising campaign. Small business survival is a risky act, where the business teeters on falling into the unknown below. Some businesses manage to find their balance and make it to the other side. Any small business will have setbacks on the road to success. A short profit year may influence a small business owner to cut back on unnecessary expenses, reducing inventory, employees or the amount that is going to be spent on certain services. (Frisch 96) Owners must evaluate advertising dollars first. A small business owner can discover their average cost for a new customer. They can calculate their cost for advertising and the number of new clients that reach their store. If a small business owner spends fifty dollars for one new customer, then he must adjust his advertising campaign to lower the cost per customer. (Harper 27) Although to find out the cost of a new customer is difficult to find out, business owners should not overlook this calculation.
Many small business owners find that they are not selling a unique product or service in their community. A tire supply shop may have ten other stores in town offering the same service and products. It is hard for a...