The first year of business is the hardest so most business owners aim to just survive. Many businesses barely make a profit in those first few months. When you start a business you should view the first months as preparation and an opportunity to learn.
When you’re prepared for all that business can bring, you’re well positioned to survive and thrive. Before you open your business, here’s what you need to know about the first year.
Comprehensive Business Plan
When starting a business, you should never just wing it. Creating a comprehensive business plan will force you to extensively research your industry and understand the market. Without a business plan, you won’t have access to lending funds to invest in your business.
Lenders want to see that you’ve thought your business through and know how to make a success of it. Additionally, a business plan is a great way to manage your expectations and clearly see what you can realistically get done in 12 months.
Buy a Business
If you want to start making a profit from your business straight away, you may want to consider buying a business. Rather than setting up a business from scratch, you can invest in a business that is already operating. This usually means there is a loyal customer base that will keep the money coming in while you work to enhance the business.
There are many reasons why someone may want to sell a business and a broker could help you to find the right business in the right circumstances.
Manage Your Finances
No matter what age your business is, it’s always vital to manage your finances well. Learn how to separate your needs from your wants. There will be certain things that are essential for your business to purchase to run it professionally.
On the other hand, there are certain things that you may want but aren’t necessarily needed. When you have to watch what you’re spending, make sure you’re prioritizing your needs over your wants.
Take a Break
Building a business takes blood, sweat, and tears. This means it’s easy to reach burnout point and continue to work as if you don’t need a break. Taking time away from your business is the best thing you can do for yourself and your business alike.
Not only is it a great way to make sure you have the energy and stamina you need to drive your business forward but it’s also a good way to gain a new perspective. Stepping away from your business could be just what you need to find the answers you’re searching for.
Prioritize Jobs
As a business owner, you’ll always have a to-do list as long as your arm but it’s never quite as overwhelming as it is in the first year. You may be tempted to multitask and try to tackle several jobs at once. You should avoid doing this so you don’t end up with poor quality results.
Make sure to take one job at a time and give it your full attention so you can be sure the result is what you want. In this first year, you are building the foundation of your business and no business can survive on an unstable foundation.
Start Networking
It’s never too early to start networking for your business. Not only is it good for brand visibility and making your business known in your industry but it also connects you with people with a wealth of knowledge. It’s the best way to share ideas and opinions in a safe circle.
Whether you connect with people online via sites like LinkedIn or introduce yourself to other business owners in your community, it all helps.
Set Goals
Where do you want your business to be at the end of this year? It’s important to set goals, both little and large. Your goals will help you to stay focused and keep working towards success. Think about what will benefit your business and what will help you reach your target audience.
Could be something as simple as refining your content so you increase your followers on social media. Perhaps it’s a bigger goal, like doubling your sales. Whatever your goals are, keep them at the forefront of your mind while you work.
Get Customer Feedback
Did you know that customers are much more likely to purchase a product if it already has good reviews? If you want to give your business a boost in the first year, make sure you’re getting feedback from your customers. It’s important that potential customers know that your business is trustworthy and reliable.
One of the best ways to get feedback is to offer initial customers discounts on products and services. This means that the price of the product won’t hold them back and sales are easier to make. When sales have been made, encourage customers to leave feedback and reviews.
Remote Working
Unless you’re planning on running your business alone, you’ll need to hire employees. However, the cost of office space has skyrocketed in the last few years and no new business needs that expense. To save your business some money, consider remote working instead.
Working remotely means you can still work as a team but you’ll need to do it online instead of in-person. This doesn’t mean you can’t arrange face-to-face meetings when necessary but working remotely cuts out a massive business cost.
Be Sustainable
Sustainability in business is more important to customers than ever before. In your first year of business, you’ll need to think about what sustainability measures you put in place. For instance, limiting the use of paper and using recyclable packaging.
You may find that you attract a new type of audience if your business is sustainable. Customers will favor your business over your competitors if you are thinking about the environment in how you manage your business.
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