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To succeed, entrepreneurs must make the longevity of their business a top priority. A successful entrepreneurial career requires more than just launching a company. It’s ensuring that it sticks around for the long haul.
According to the Bureau of Labour Statistics, roughly 20% of small businesses fail within their first year of opening.
What is longevity?
Business Longevity has a constantly evolving definition. Galadanchi & Bakar (2018) state that longevity can be defined as the sustained existence of companies even after the dead of the founder) However, it is certainly dependent on several factors and should always be considered in relation to your goals for the business.
The longevity of an organization can be put down to an enhancement of the firm’s self-renewal process which develops measures to initiate changes that address recent and arising issues.
Why it matters?
Simply put, the longer you have been in business… the easier it is to gain new customers, making a business’ longevity crucial in success. In addition, longevity builds a trust between you and the target market whilst more importantly provides valuable learning experiences to build upon.
How to enhance?
As most companies would agree, a commitment to quality, innovative products and services is a key predictor for longevity.
Tips to improve the longevity of your business include:
Manage overheads and other responsibilities e.g. maintaining a smaller size rather than expanding thus reducing turnover of staff
Keeping an open mind of the ever-changing forces at work in their particular field e.g. new technologies/advancements
Embrace new opportunities and threats e.g. taking actionable steps that consider the outside variables that may affect your cash flow.