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4 key resources to start or run a business successfully

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This guide outlines the 4 factors you must have in place for any chance to successfully start up or run a business in today’s economy.

Starting a business is hardly a walk in the park, and nor is the effort to run a business. There’s a lot of preparation and planning to set everything up and get it going. And even then, things can still end badly. According to the U.S. Bureau of Labor Statistics (BLS), about 20% of new businesses fail in their first year. This number increases to 45% during the first five years and about 65% during the first years. Scary numbers, right?

But you shouldn’t let these numbers scare you. Instead, let it inspire you to do your due diligence to significantly increase your chances of success to run a business. Many successful businesses are launched yearly; if other people are doing it, you can also do it. The biggest failure is arguably not starting at all, fearing the business won’t succeed.

4 key resources to run a business

As you already know, a business is a resource-oriented venture, and some resources have to be available and managed well to make the business successful. Below, you’ll find five essential resources vital to run a business successfully. Here we go.

  1. Funding

Funding is the lifeblood of any business. Except in some rare circumstances, you will need some money to start and to run a business. The biggest barrier to entry for many aspiring entrepreneurs is funding. An individual can be extremely talented or even passionate about a business, but nothing will come without funding.

It’s important to be realistic about the financial resources you need to start and run it until you can make enough profit to keep the business afloat. Common funding sources for new businesses include personal savings, business loans, venture capital, angel investors, and friends and family.

For small businesses, personal savings is usually the most common funding source. However, how much capital you have and how much you are willing to risk can limit the financial resources available. In many other cases, businesses and entrepreneurs tend to prefer external funding. Study the pros and cons of each financial option available and make an educated decision after your analysis.

  1. Human Resources

The human resources to run a business are key to both short-term and long-term success. The management has to recruit capable and experienced personnel to ensure the business’s objectives are achieved efficiently and on time.

Recruiting the right people for each role and tracking their skills can be daunting. However, a solution business owners use to simplify this process is Skills Management Software. Thanks to this software, businesses can identify skills gaps, analyze the competency of employees, develop recruitment campaigns and training programs, and have the right people at the right place.

The overall effect is a better decision-making process and improved customer satisfaction. It will also be easier to retain employees as they feel valued and motivated to work towards the organization’s goals.

  1. Research and Industry Know How

Entrepreneurs need to know about the current landscape of the industry or sector they wish to start or run a business in. This is why in-depth research and market analysis is one of the first things to do before starting a business. Imagine a real estate agency being created in an area where the market is oversaturated with agencies. It will be difficult for a new agency to break into the market in such situations.

Lack of or insufficient research and industry know-how has led to the failure of many businesses. Do your research and craft a solid and realistic business plan from your findings. A business plan is an absolute must for any business and should entail the goals of the organization and how said goals will be achieved.

  1. Support System

Starting a business is potentially a rough journey, and entrepreneurs need to have a support system to see them through their journey to run a business successfully. The support could be in the form of other entrepreneurs through entrepreneur communities. The more experienced business owners can provide mentorship and support for the newbies.

Another form of support entrepreneurs should have is from friends and family. Several challenges await the new entrepreneur, and support from loved ones can help them scale through these challenges.

It’s not unusual for entrepreneurs to have unsupportive friends and family members. If you are in such a situation, try to explain your ideas to them and let them know how important it is to try to see your vision come to life. If they still don’t support you, don’t give up, and don’t fight them. They may be against you out of concern, but the most important thing is that you remain confident and stay true to your vision.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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