For all your online business building info! , 2020-10-28 07:23:19
5 Tips to Survive Your Business Startup First Year
As every business owner can tell you, one of the hardest time in a business lifetime is the first year. Research reports show that three out of ten startups don’t survive the first two years and half of those will close their doors in the next five years.
How to change those odds, so your business will survive that hard first years? Here are some tips you should take to improve the odds:
Talk to Customers
This is important for every business, but is especially important for startups. Doing the market research will help you (the business owner) to avoid mistakes or at least detect the mistakes before they are made. Something’s to look for are: is the business being done in the right market and are your products marked at the right price.
Whether you need to pick a retail location or a website domain name make sure it is easy to find and accessible by potential customers. Also the name of your business should match your business and should be easy to remember.
Keep Expenses Down
Every business needs a cash buffer in case it needs to react at changing markets or other business related circumstances. This is especially true for startups, so try to keep expenses down. Try to save or reserve a certain portion of the profits to build a cash buffer.
Analyze your Startup
You need to make time each week/month to analyze how your business is doing. We know time is hard to find, especially in the startup days, but it is very important to know where your business is heading. Without this knowledge it’s hard to make the right business decisions.
Planning for Problems
By creating a cash buffer for your business you are already planning for problems, but you can do more. Try to create possible problem scenarios and try to make a plan on how you will react in those circumstances. For example: what will you do if business is slowing down? Or what will you do if a certain product isn’t selling as expected? Or what will you do if a product took off and you can’t keep up with production?
These are some lessons we’ve learned, so how did you get your business through the first year(s)?
Share your story in the comments!
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