Playing it safe in business

Sometimes it can pay off in the long-run to play it safe rather than take risks in small business.

Many talk about the importance of risk-taking in small business. But for all the successful entrepreneurs out there, there are just as many, if not more, who have taken too high of a risk only to fade away, never to be heard of again.

There will be times when a small business must take leaps of faith. However, it is worth remembering that, at times, there’s value to being conservative.

Here are some aspects small business owners should keep an eye on to ensure they grow a healthy and sustainable business:

Marketing
Many entrepreneurs mistakenly believe that simply marketing their products or services will guarantee success. However, successful marketing requires time, strategic thinking and a ton of experience to master. Therefore, small businesses should focus first on simple marketing practices that guarantee a more tangible return on investment.

Cash
It is a sad fact of business life that the majority of companies go bankrupt due to lack of cash flow. And while a start-up business, of course, eventually needs to make a profit, it must never run out of money due to focusing too much on growth and marketing. Keeping a careful eye on cash flow and ensuring that employees and creditors are paid on time is crucial for a small business's survival.

Research and Development
While small business owners should never let others improve their products or services, especially their competitors, they can’t always be at the cutting edge and therefore never enjoy profitable established sales. As a small business owner, it is your responsibility to find the appropriate balance for your business.

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