Have you ever heard the statistic that 90% of businesses fail by year five? Pretty daunting, isn’t it? As if you needed another reason to doubt yourself or your progress as a small business owner. While it’s not as bad as 90%, the true failure rate of small businesses is about 50% by the fifth year of operation.
While it might sound like we’re trying to scare you off from continuing to build your business, it’s actually quite the opposite. Understanding when businesses fail can provide you with some insight into how to avoid that kind of failure.
Part of navigating success as a business owner lies in understanding the various strategies for managing a company successfully in 2022. This includes understanding employee trends, hiring tactics, consumer preferences, and even changes in the current global health crisis. Not sure where to start? Here are a few of the top strategies.
Tips for Managing a Successful Company
1. Organize a Plan for Success
You might have business goals, but success is all about setting the right business goals. Seeing as the world has changed drastically in the past two years, it makes sense that now is a good time to reassess those goals and organize a revamped plan for success.
You can start by taking a look at what has worked for you in the past and what hasn’t. Make sure that you have a clear understanding of this before you start to plan for success in 2022. Then, get specific about your business goals. Think short-term (i.e. in the next 1-3 months) and then semi long-term (all of 2022). Where most business owners seem to fail is at this step; they don’t get specific enough.
Is your goal to increase sales? Great. By how much? You can’t simply say “I want to grow my business.” It’s hard to hit a moving target, so make sure your target is set (but be willing to be flexible as the year goes on and trends change). If you’re having trouble with this, Business2Community recommends making sure that your goals meet the following 5 criteria:
- Available resources
- Based in fact and statistics
We’d argue that it’s especially important that your goals are “measurable” as you can’t analyze your efforts if you’re not measuring their success (or failure).
2. Invest in Your Employees
You’ve got your business goals set and you’re now well on your way to managing a company successfully in 2022. However, you still need to focus on one extremely crucial area of your business: your employees.
If you have employees, take time to sit down with each of them and ask them how you can improve your business operations to:
- Make their job easier on them (whether this is through providing them with more training, for example, or access to better software)
- Increase their engagement
- Improve communication
These are all pain points that employees consistently cite as affecting their productivity, workplace satisfaction, and engagement. Once you’ve got those answers, you can also start to think about perks.
For example, did you know that 92% of employees at small to mid-sized companies ranked “workplace savings and retirement plans” as an important factor in remaining with their employer. Offering retirement benefits, such as a 401(k) or IRA plan, is one of the best ways to invest in your employees in 2022.
3. Focus on Quality
You can invest millions of dollars into marketing, sales, and other strategies, but if you aren’t offering a high-quality product or service, you’re not going to get very far. This is why Investopedia argues that “companies can achieve market leadership through quality, innovation, customer service, or even warranties.”
With all of the noise and saturation that exists in today’s markets, it’s becoming increasingly more important that, when managing a company successfully, you’re factoring in quality. And, this applies to every step of your business process or sales funnel. For example:
- Does your website show your visitors a high-quality image of your brand?
- Is the content you post on your blog, in your emails, and on social media not only high-quality in design but in the value of the information it includes?
- When your product reaches your consumer, is it packaged properly?
- If clients have an issue with your service, do they receive high-quality customer service that helps them resolve that issue easily and quickly?
Throughout any touchpoint of your business, you should be focusing on quality, regardless of the industry you’re in.
Grow Your Business Successfully with Wealth Stack
Managing a company successfully in 2022 might sound difficult, but it’s actually quite easy when you understand what consumers want and how to deliver that to them. And when you’re ready to scale the financial side of your operations, we’re here for you.
We offer digital advisory services that help you grow how you need to and on the terms you need. This includes providing you with access to alternative sources of non-dilutive capital, but it also includes great retirement solutions for you and your employees.
With a library of over 100 videos and articles on everything from investing to retirement planning and personal finance tips, we’re your one-stop-shop for all financial-related questions. Want to manage a company successfully? Invest in yourself and your employees.
Click here to learn more about the Wealth Stack Growth Pack.