Augusta is home to many prosperous businesses, but not every business that starts here is successful. In order to be successful in Augusta, a business needs to be realistic about its potential and make smart accounting choices. Unfortunately, not every business embodies this mantra and this causes businesses to fail. The following offers some tips on how to keep your businesses’ doors open, using some notable local businesses as examples of successes and failures.
Keep in mind that a failure to manage money is one of the leading causes small businesses fail. It’s easy to lack cash flow during the startup phase, and growing or struggling businesses may struggle to pay back loans or offers of credit. Remember: there may be tax credits and business incentives available to your business. Research ADP business tax credits and incentives to learn more.
Basket Savings Proves Application Software a Smart Enterprise
Basket Savings is an application software developer that’s moving some of its operation to Arlington County. Basket Savings is a great example of how mobile apps and other I.T. startups have a unique edge in today’s device-connected world. The company is investing $10 million in local job creation, and most of the 65 new jobs Baskets Saving is offering are well above average wages for the region.
So, what can your business learn from Basket Savings? Well, if you’re looking for a startup idea, it’s less costly to start a Web or app development company than it is to start other types of businesses. Keep in mind you’ll need to hire innovators that are capable of developing apps people want. In Basket Saving’s case, the best-selling app is the “first-ever smart shopping list powered by its community-based mobile app that empowers consumers to make educated decisions when shopping for groceries and everyday goods, helping them know the price of everything, everywhere.”
Retail Needs an Edge to Survive
It was terrible when Blue Ridge Sports closed its remaining stores, but inevitable when you consider the tough retail economy. Online retail is causing Main Street retail to bleed a slow death, and Blue Ridge is a casualty of this. Unfortunately, people don’t impulse buy by a lot of sports gear; you make a plan to buy sports gear, and for many it’s easier to order their equipment online.
From the failure of Blue Ridge, you can learn why it’s necessary to be honest about your businesses potential. Blue Ridge secured inventory loans at a time when sales weren’t doing well. There’s no way to know what sorts of business failings led to Blue Ridge’s ultimate demise, but it’s worth noting the company wasn’t debt free at shut down. Strategic Funding Source Inc. provided the struggling retail establishment with funds for inventory, but it seems the inventory infusion did little to save the company.
Some Things Everyone Needs
Graphic Packaging International, Inc. is one of the area’s most successful businesses. Packing solutions for foods, beverages, etc. are always in demand, so the company continues to lead the market. A new $20 million expansion is going to create more than 40 new jobs.
From Graphic Packaging, your business can learn the fine art of supply and demand. It’s the same thing you can learn from the very sad closing of Better Living Furniture, which is closing its doors for good in 2016. Unfortunately, there’s little demand for the furniture being sold, so the business owners are closing its doors to focus on selling building supplies and cabinetry.
You can turn your company around before it fails. It takes tenacity to save a struggling company. Access your business, look at what you’re doing right and what you’re doing wrong, save money, and create a new plan. Unfortunately, not all business can succeed. Sometimes, the smart thing is to know when to close.
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