We live in the era of the startup. From a blogger launching her own web content company to a group of buddies wanting to start the next big search engine site, the digital age gives everyone a chance to try and make it on their own.
However, 90% of startups will fail. The odds, sadly, are not in your favor. Here are five tips you need to know about the other 10%, and how you can grow financially during your first year of business.
Many times, people go into business for themselves without any savings. This is a bad idea, as you will be spending more money than you earn on your fledgling biz. A good rule of thumb is to save as much as possible before you bid farewell to your full time job and become your own boss, hopefully as much as one year of savings in the bank. This gives you an economic cushion, in case you should fall and your startup fails.
Set a shoestring budget for your company and stick with it. The idea here is to think big, but start small. Remember, Rome wasn’t built in a day, and your business won’t be either. Folks who start their small business on the cheap, such as in a garage or spare bedroom, can master their goods or services and retain customers without spending a fortune on office space and supplies.
Your employees are the backbone of your biz, and your company will only be as strong as the people you hire. You can do this by hiring a company that will assess workforce risks and then increase team readiness so that your company will thrive.
Other than saving for start-up costs such as insurance and unexpected expenses, your will also need to keep in mind that rainy day costs are essential as well. If your computer starts acting up or you need to pay for unexpected medical expenses and you don’t have the cash handy, you and your business will both suffer.
- Understanding Your Profit
You need to have a solid plan of action in place on how you intend to make a profit with your company. You’ll also need to know your costs, which will give you a clear understanding of how much business you need to do every month in order to get the bills paid.
While running your own company can be challenging, it can also be one of the best life decisions you have ever made. Just remember these five tips so that your biz will thrive financially.