You have a new business – now what?
Yesterday you had a great idea, today you have a new business – now what?
Good news for new business owners: according to the US Small Business Administration, nearly 80% of small businesses survive their first year.
However, that number begins to drop as time rolls on. Only half of new businesses pass the five-year mark, and only a third celebrate their tenth anniversary.
Taking steps to create a good foundation at the beginning of your business is essential for long-term success. Below are some steps for building that foundation.
1. Numbers
Keep your eyes on the numbers. As a new business, you may be surprised by just how quickly those day to day expenses add up. It’s important to make sure that you consistently track your spending, file your receipts, and monitor your income and expenses with an easy, reliable accounting system.
Cloud-based accounting software, like QuickBooks, can help you know exactly where your finances stand in real time—with secure access to accurate, up to date financial data anywhere, anytime.
In addition to being able to collaborate more efficiently with your bookkeeper and accountant so you can get advice whenever you need it, you’ll avoid the stress and hassle come tax time—and be empowered every day to make better, smarter business decisions.
2. Marketing
Don’t neglect marketing. All entrepreneurs are incredibly busy, and it can be a real challenge to find the time to promote your new business, but make the time! When it comes to marketing, the other challenge for new businesses is money—but every small business needs to invest in marketing activities that will bring in more sales and keep the cash flow flowing.
While investment is necessary, it is wise to avoid costly large-scale marketing strategies when you’re just starting out. Instead, really get to know your customers and how they tick, so you can design highly appealing, yet cost-effective campaigns.
Also key is keeping an eye on what your competitors are doing. Monitor how they attract new customers and think about how you can improve their processes or take a completely different approach to that will help your young brand stand apart.
3. Advisement
Touch base with a business advisor.
Every successful entrepreneur learns from experience—not to mention failure, which can be the greatest of all teachers. And while it’s true that “you don’t know what you don’t know”, you can shrink your learning curve by reaching out to experienced mentors for guidance.
Consider working with a small business consultant who can provide personalized advice to help your new business make it through the first year—and an ongoing objective perspective on your business, industry, and market going forward.
Your New Business is Your Baby
It’s been said many times that a new business is like a baby—and it can be incredibly difficult for entrepreneurs to trust someone enough to hand over any aspect of it. Many business owners work themselves to exhaustion because they can’t let themselves to take a weekend off. These business owners neglect their most important relationships and never get to enjoy their successes because there is always more to do.
The most successful entrepreneurs know they cannot do it all and build in time for rest so they can be more productive. If you have employees, train someone early on to run the business in your absence so you can take a rejuvenating vacation, and enjoy the freedom you likely dreamed off when you first imagined going into business for yourself.