Starting a business is a great way of being completely independant and self-sufficiency; it truly is an amazing and rewarding experience. The start-up mode of a business is the most challenging stage you will undergo as a small business owner. If you are unsuccessful in start-up mode your business will obviously fail as well.
Only 2% of businesses survive after the first year of opening and for good reason. There are a number of important affairs you need to attentively and actively monitor to keep a new business afloat.. Within the first year you may not always be making enough to pay the salaries of your employees, business expenses or the rent of your office space, you may feel lost because of the lack of business’ organization, you may even miss out on opportunities due to lack of business management. So I have created a list of important points you should plan and research before the launching your new business.
1. Financial Backup:
Generally when starting any business, it would be wise to start with a full bank account. The business I started I had saved up about $5, 000.00 before taking the first step. When I started my second business I knew I needed to quite my job first to focus %100 on my new business. I did however sign a contract with a friend before starting meaning I already had my first client so I knew I would have positive cash flow in my first month. As for my photography business, I started while I was attending college and saved up 0$ only because I had no real liabilities or expenses;I was also still living with my parents. Depending on your living conditions and business liabilities calculate about 3- 6 month of back up money because revenue doesn’t always go according to plan.
One of the most common mistake start-ups frequently make is they have no plan as to how their business will generate sales. Most start-ups generally do not have the budget to hire quality sales people so they produce their own sales. Those start-ups need to study their business’s targeted market and find ways to intrigue them. By creating many campaigns they will be able to analyst and test each one to eventually discover the campaign that works and fits their targeted market and help produce sales.
By creating a sales and marketing strategy that is customized for your business and its own individual personality you can keep yourself in check and stay organized while aiming to reach your business’ maximum potential and move your business forward. With a strategy to follow you can confidently generated the right amount of positive cash flow with in the right time frames. You could always try and get a free marketing and sales consultation from an organization or friend with expertise and experience. TIP: LIDER Marketing is currently offering free marketing consultations.
There are many start-ups that do not need to invest into any outsourced services or items to open their business, however, some do. Every industry can benefit from having/making connections. The most successful people in the world have connections and if they didn’t when they started they did make connections when they began walking in the world of success.
When I first started my business I was very fortunate to have connections who were interested in taking small projects, and friends who were actively seeking the services my business was offering, I was also fortunate enough to have connections with individuals who had the right ‘’hookups’’ my business needed. All of these different connections all contributed to making my business what it is today. Connections help you grow, prosper and learn faster and easier.
4. A Developed Concept:
Make sure you have a concept already firmly in mind and stick to it. I’ve had countless clients who invested aload of money into marketing services, networking, and etc only to completely change concepts and lose everything they built and invested into the old concept. When you are in a start-up, money is limited and you need to invest every penny into something that is absolute.
Entrepreneurs need to set up a strict schedule and stick to it. Countless start-up owners who start from the bottom and built their own business all on their own with no funding tend to have a difficult time sticking to their work schedule. When you have a job within a company it is rather easy to get up, get to work on time, and get your work done. If you are unsuccessful at doing so you naturally will be fired. However, with your business you are able to do a poor job on a client and get away with this; you cannot get fired by your boss because as a business owner you are your own boss. That being said, with one bad review you can still convince others to invest into your business as a client. Keep in mind, that once you do reach a number of bad reviews you will find it difficult to acquire your audience’s trust again and generate leads. With the digital world rapidly growing anyone and everyone can share their bad experience online.
Starting a business is not an easy thing to do, so when you do start your business make sure you are prepared. For any other questions about starting up your business please write your questions within the comment board and I will answer every one of them.
Thanks for reading!
Katie Raspberry | Creative Business Blog
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Attorney Sebastien Dube | Montreal Lawyer
Avocat Sebastien Dube | Avocat Montreal