Handy hints for your business startup
Looking at starting your first business? Make sure you focus on these areas
The business plan is coming together. You’ve covered every aspect, but as a first-time entrepreneur you don’t yet know what you don’t know. Here is some useful advice to make sure that you start off on the right track.
Cash flow is king
The priority is to make a profit, but the main reason that new businesses struggle is because of issues with cash flow. Do everything you can to ensure that you have as much cash on hand as you can for any unexpected costs. Beyond the inevitable sunk costs, try to avoid money being tied up in fixed investments early on. Depending on your industry, you could ask for deposits up front to ensure you have cash to complete tasks for clients, rather than working in arrears.
Plan for the worst
Forecasts are always tricky, especially with no prior information to base it on. It’s a near inevitability that expenses will be higher than expected which can be extremely detrimental to a startup business. Overestimate any costs you might incur and underestimate the revenue you will gain each month to ensure that even if the worst comes to the worst, you will still have a positive cash flow and making a profit, however small.
Be efficient
The easiest way to increase your cash flow is to limit expenditure. You can’t control how much revenue you will get in each month but you can control your expenses. Buy in stock as and when you need it and pay for it up front, giving you the leverage to negotiate on price. Shop around and make sure you get the best deal for what you need. A great way of doing this is by using slightly used fixings where possible, which are far cheaper than brand new and just as effective for your business.
Focus on distribution channels
You may have a fantastic product or service but if customers can’t get hold of them or are unaware of them it won’t matter. Open up as many marketing and distribution channels as you can, through networking and social media; demand will quickly rise.
Cut once, measure twice
Reputation is key, especially for a new company. Make sure that there are no mistakes and customers have a great experience every time they interact with you. There will be issues of course, but limiting them as much as possible will help to build up a loyal customer base.
Keep developing
Your business will evolve and that will help to strengthen it. Keep researching what competition and other companies are doing for any ideas in how to increase demand. Allowing the business to change and evolve is always tough, and it is important to balance change while maintaining your values and the USP that you start your business to achieve.
You’re not the first person to go through startup and you definitely won’t be the last. While it’s obviously important to mould the business in your image from the start, there’s no harm in seeking out advice from people who have been in your shoes. That’s where we come in. We can help you monitor expenses and the all-important cash flow but we also go above and beyond, working with you to ensure that your business is a success from launch day. Give us a call today on 0121 236 0777 to find out how we can help your startup and develop an understanding of your exact requirements.
Handy hints for your business startup
