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According to a recent set of statistics, over 4,000,000 businesses start every year. Unfortunately, not every business succeeds. Factors such as a lack of funding, natural disasters, incomplete infrastructure, and underwhelming marketing strategies can all bring businesses down.
Many of these scenarios can’t be avoided. However, when business owners arm themselves with knowledge, they have a better chance of success. These are a few things every new business owner should know.
Legal Aspects of Running a Business
There are a wide variety of things that a business needs to operate legally, and not having them can lead to costly fines, lawsuits, or losing your license. To remain open, be sure you investigate laws pertaining to:
- Business permits licenses
- Registering your business’ name
- Filing taxes
- Business and property insurance
- Employee benefits
- OSHA requirements
- Building permits
Keep in mind that while some factors are the same across the nation, such as registering for a federal tax ID, there are some laws that will be different within your state and city.
Basic Principles of Marketing
A business can have the greatest product idea, the most incredible service, and still go under because customers don’t realize it exists. For success, businesses need to understand the principles behind marketing.
There are several aspects to good marketing. If you produce physical products, you will need to understand the lifecycle of a product. You also must understand your demographic and the value your product has for customers. For service-based industries, the emphasis is more on your relationship with the customer than on the value of the product.
How To Cultivate Workplace Culture
No business is complete without its workforce. For your business to be successful, you must create a culture that values employees. Avoid low morale and high turnover rates. A few ways to cultivate a good workplace culture include:
- Fostering mutual respect between employees and management
- Emphasizing work-life balance
- Setting clear goals and values
- Creating a zero-tolerance policy for harassment
- Allowing flexibility for employees
Establishing good workplace culture begins with the tone you set as an owner. If you support and listen to your employees even as you set the standard for work, your workforce will feel safe.