How to Ensure That Your Trading Company Doesn’t Fail

Statistics tell us that a good number of the trading companies that are started fail within the first two years. As a person who is considering setting up a trading company, you will obviously be keen on seeing to it that your company doesn’t suffer that fate (of failing within the first 2 years). You will therefore be keen on knowing what you can do, to ensure that your new trading company doesn’t fail. That is the concern we will be addressing in today’s article: by highlighting some of the things you can do to avoid failure.

Get adequate capital to start out with

One of the main reasons as to why new trading companies fail is due to financing difficulties. A new business is unlikely to survive cashflow challenges. By getting adequate capital to start out with, you greatly increase the chances of your new trading company surviving past its second birthday. And getting adequate capital shouldn’t be too hard, if you have a solid business idea, and if you are creditworthy. In that case, getting capital may be as simple as going to a financial site – like mypremiercreditcard.com and applying for a loan there.

Get the best possible human resource

Your new trading company is likely to do well if it is staffed by competent people. You therefore need to take the trouble of recruiting the best possible people. To this end, you may need to advertise the positions publicly. Then you may need to go through an objective shortlisting process. Finally, you may need to undertake thorough interviews, to get the very best possible people. Then, having gotten good workers, you may need to train them well, and treat them well, in order to retain them.

Work with reliable suppliers

A trading company can be brought down by unreliable suppliers. You therefore need to do everything in your power to ensure that you work with reliable suppliers. And having gotten reliable suppliers, you need to treat them well, to ensure that they stick with you on a long term basis to ensure the success of your trading company.

Take good care of your customers

Obviously, a trading company is unlikely to survive in the long run if it is unable to take good care of its customers. You therefore need to inculcate a customer-centric culture in your trading company right from the outset, to ensure its long-term survival and success.

Create good operating systems for the trading company

The success of a trading company ultimately depends on the systems it is run on. You therefore need to create good systems right from the outset, and ensure that all things in the company are done as per the systems. With good systems, you won’t even need to manage the company personally. The systems will run the company for you!

5 Things You Need to Have When Setting Up a Trading Company

A budding entrepreneur recently asked me an interesting question. He wanted me to tell him the one single most important thing you need to have, when setting up a trading company. Surprisingly, I found myself unable to give a straight answer to that question. That is because I know the things you need to have, when setting up a trading company. However, I am unable to pick out one, and elevate it to the status of being ‘the most important thing’. To my mind, all these are things you need to have, and you can’t be able to set up a proper trading company in the absence of any of these things. So I ended up giving him an exposition on all the 5 things you need to have, when setting up a trading company. For the benefit of my readers, I repeat them here.

Firstly, when setting up a trading company, you need to have adequate capital. A poorly-funded trading company will have problems, and it may end up failing prematurely. Capital is one of the key factors of production in these sorts of ventures.

Secondly, when establishing a trading company, you need to find good premises to house the business. You need to figure out how much space you will need, for the trading company. Then you will need to buy, rent or lease such space, to get the business going.

Thirdly, when starting a trading company, you need to have good staff to help you run the business. Don’t ignore this: the success of your business could ultimately hinge on the quality of the human resource you have.

Fourthly, when starting a trading company, you need to have reliable suppliers. So you have to study, to understand how the supply chains work. Then you need to position yourself properly, knowing that the success of your trading company will also depend greatly on the reliability of your suppliers.

Fifthly, when setting up a trading company, you need to have a well thought out business plan. You need to have figured out how the trading company is to operate, how it is to beat the competition, how it is to make its profits… and so on.