3 Lessons From Business Survivors

According to a study done by the Small Business Administration (USA), two-thirds of all new small business survive the first two years but only 44% will still be operating by year four.

Here are three very important lessons from business owners who have survived, from an article in Business Week:

Lesson #1 - Recycle money early.
"during the crucial first years I learned you really always need to recycle money back into your business instead of taking money out of it. A new business needs to stay fresh..."

Lesson #2 - Diversfy your clients.
Rather than rely on one type of client for revenue, early on Niemeier decided to make sure he launched a firm with a diversified clientele working on educational, corporate, health care, and hospitality projects

Lesson #3 - Qualify and eliminate clients who don't 'fit'.
"But what I learned from that is that I really had to do a better job of screening and qualifying our prospective clients. Not everybody is a good client and when they don't pay their bills in a timely manner I realized we had to fire them."

Read the whole article.