Here are some important steps to help you survive the first year of business:
Research, Research, Research
Having a great business idea doesn't necessarily guarantee success. Before launching your business, undertake thorough market research to determine if there is a demand for your product or service.
Seek honest feedback from potential customers to refine your idea and ensure that there is a market for it.
Focus on Your Core Business Needs
It can be tempting to invest in all the latest bells and whistles, but splurging on unnecessary luxuries can drain your finances. Instead, focus on the core operational needs of your business to attract paying customers.
Keep your minimum viable product (MVP) simple and effective, and save the flashy stuff for later when your business is more established.
Don't Race to the Bottom on Price
Offering discounts to attract customers may seem like a good idea, but it can eat into your profits and set a precedent that's hard to break. Instead, focus on offering value and superior service to justify your prices.
Consider incentives such as package deals to increase revenue, rather than lowering prices.
Keep Cash Flowing
Cash flow is crucial to any business, particularly in the early days. Manage your finances effectively by staying on top of your costs and revenues, chasing invoices promptly, negotiating supplier discounts for early payment, and reducing your fixed costs.
Be prepared to make personal sacrifices to keep your business afloat, but make sure to have a plan in place for paying yourself.
Get Professional Advice
Starting and running a business can be complex and overwhelming. Seek tailored financial, tax, legal, and business advice to ensure that you're set up properly, tax-effectively, and profitably.
The cost of professional advice is minimal compared to the potential savings and mistakes that can be avoided.
Take Care of Yourself
Running a business is a marathon, not a sprint. It's essential to take care of your physical and mental health to ensure that you're functioning at your best. Schedule time for meals, exercise, and rest, and seek support when you need it.
Stay Committed
Starting a business is hard work, and it's easy to become discouraged when things don't go as planned. Stay committed to your vision and keep pushing forward, even when the going gets tough.
Remember, the first year is make-or-break, but with determination and the right strategies, you can succeed.
Published: Friday 10th March, 2023
Last updated: Friday 10th March, 2023
