According to Australian Government data, 424,144 ABNs expired last year. With so many business ideas failing to get off the ground or struggling to scale, it raises the question, where do they go wrong?

There’s a myriad of reasons a business can go belly-up, and for many of them, it happens within the first year of starting. Last year, a survey of nearly 1,000 Australian businesses found that one in three are afraid they’ll have to shut up shop within the next three to five years.

With so much uncertainty in the air, it’s no wonder people are afraid to start a new business venture. Here are five tips to help you along the way, and, of course, keep that ambition alive.

Assess your business frequently

It can be easy to get lost in the day-to-day of a business, especially in the beginning, but it’s important to assess the health of your venture often.

A good way to do this is to use the SWOT model to build on strengths (S), minimise weakness (W), seize opportunities (O), and counteract threats (T). This is best conducted with a particular business objective in mind, like, for example, deciding whether you should raise the price of an item.

Isolate what makes your business special and amplify it

While there’s always room for more than one player in any given space, the ones that succeed often have something special that its competitors don’t. Look at the consumer computing industry, for example. Microsoft offers customisation at the core of its Windows products, while Apple opts for usability above everything else. Both companies are capable of meeting the needs of the end-user, but each method is unique and executed well.

A big tip for those wanting to start their own business is to do your market research and then find a clear niche for your product. Once that special sauce is isolated, amplifying it will help your business stand out against competitors.

Move with trends, and do it quickly

Agility is important in any industry.

As a business owner, identifying and moving with industry trends is important for maintaining relevance, particularly in today’s fast-moving economy. This all comes down to ensuring your business is able to shift quickly if needed.

Ask yourself how you can be a leader when it comes to emerging trends and take advantage of the opportunity, rather than simply keeping up with the rest of the pack.

Prepare for failure

44% of Australians say that a fear of failure has stopped us from chasing our goals, according to recent research. The best way to deal for failure is to be prepared for it. It may sound a little grim, but if you have an adequate strategy for dealing with the unexpected, you’ll fare much better than you would without it.

Being comfortable with the possibility of failure will ensure you’re in the best mindset to bounce back. As CQS International founder, William Nobrega says, “You will run into obstacles all along the way, but how you deal with them and how you overcome them will determine your success.”

A positive mindset can absolutely make a difference

There’s no shortage of research on the power of positive thinking and the outcomes it can have on skills, health, and career. One such study found that the happiest people often attribute at least part of their successes to optimism and a positive outlook.

Whether it’s simply an enhanced ability to better cope with the stresses of running a business or the willpower it helps cultivate, maintaining a positive mindset can help you keep your business on the right track, which is something late Apple co-founder, Steve Jobs agreed with.

“I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance,” he said in 1995. “It is so hard and you pour so much of your life into this thing, there are such rough moments in time that most people give up. And I don’t blame them, it’s really tough.”

Ambition is key.

Contact Morris Finance today on (03) 5223 3453 to unlock your business potential. We will give you the tools your business needs to get ahead.