Patrick Iturra, Asset Manager at Estate Investments Group
How long does it take a business to become successful?
This is one question that is popular across search engines and forums. But the actual answer to this would be that it depends!
Many small businesses become profitable in 3-4 years, whereas some small businesses might need more than 6-7 years to become profitable. Also, some companies become successful in 10+ years.
Many factors come into play, such as competition, market conditions, the scale of operations, etc. As a result, a lot depends on the market situation. The best example would be the covid -19 pandemic times when small businesses struggled with significant losses, which might take years to recover from.
To provide a better idea, I will mention a year-on-year forecast with year-on-year estimates of the time frame to make a business successful. Let’s get into it.
Year 1: Start of the Startup Journey!
The first year is the toughest, and this is where the majority of businesses fail. But this year has been rewarding in terms of experience. Business owners celebrate small milestones of starting their business, launching their website, and growing their client list.
I am also estimating the expenses and forecasting the future, making new strategies to break even and profit.
But, initial failure/success is not a mandatory sign for running a successful business. About 20% of companies fail in their first year.
Year 2: Debt rises, Need Better Strategies!
The second year is also essential; most businesses are burning their cash reserves here. Many business owners would be looking for investors resulting in stress due to rising debt.
Here are essential lessons that business owners learn about nurturing customer relationships. One of the biggest lessons is that running a business is not easy.
Here entrepreneurs learn about making milestones- not only big but small ones. These are crucial for building a successful business.
Year 3: Develop Leadership Skills & Grow Your Business
If someone has been running in profits, their goal in the 3rd year would be to increase the profits, whereas the businesses running in loss would decide to break even.
Here, a long-term program is essential for future growth. If a business is facing losses, then it should focus on making a strategy for its business. Entrepreneurs should work on their leadership skills and understand buyer behavior to drive more sales and minimize costs.
Year 4: Small Success Contribute to the Spirit of Entrepreneurship
This is when most businesses have tasted some success and want to increase their revenue in the long run.
Most business owners have made many mistakes and learned from their lessons by this time. At this stage, the business owners should focus on the following:
- Brand positioning
- Efficient management team
- Focus on customer acquisition
- High-quality product development
- Increase the profit margins
- Understanding the market trends and the needs of the customers.
Cheers to your Business!!
It takes a lot of hard work and perseverance to run and make a business successful. Having worked as a Real Estate professional and strategic investment advisor for the past 24+ years, I have worked with many entrepreneurs and helped them grow their businesses by getting investors.
Suppose you have an idea for your business and want to make it. Then, you would require funding from investors to grow and scale up your business.
I can be your helping hand here; I will help you to start and get going with your business idea. All you have to do is to contact me here.
I am looking forward to hearing about your business idea! Check out this cash flow machine; JP Morgan Chases are opening a lounge in decentraland. They have also quoted a significant opportunity to make money in the Metaverse.
Business development is the ideas, initiatives, and activities that help improve a business. My experience results in your business’s increased revenue, expansion, and profitability by building strategic partnerships and making strategic business decisions.
I don’t sell houses. I grow your Assets. Patrick Iturra, Asset Manager at Estate Investments Group