If you want to start a new business, please accept my congratulations. You have chosen a challenging but ultimately rewarding path.
Below are eight startup tips to help you stay on the right path.
1. Cash flow management is key
Most startups fail because the investor ran out of cash. You must manage your dollars and cents the right way or else your business will collapse.
Have a budget and stick to it religiously. Do not spend money unless it is on your budget. Once you can keep the cash flowing, your business will survive and grow.
2. Track and monitor all spending
Starting a new company comes with a number of costs and expenses. The ideal thing is to hire a full time staff to keep accurate records of turnover, income and expenditure. Since you cannot afford this move at this time, you should simply use software to keep track of your spending.
In future, your company will get bigger and more successful. When that happens, you should hire a full time staff to handle all the complex accounting.
3. Limit your fixed expenses in the beginning
In the early stages of your company, you should keep expenses low. You can share an office to save cost and generally try to keep overhead costs as low as possible.
Forget about fancy offices and other luxuries at the beginning. Focus on generating income and increasing your customer base. When your firm is on a sound footing, you can go for a befitting office.
4. Remain optimistic but prepare for the worst
A new business is a mystery in the sense that you never know what will happen. While you hope for the best, you should prepare for the worst. Do not quit your job until your business is on a sound footing.
Make sure you have a contingency plan in case the unexpected happens. You should also have strategic reserves of cash so that you will not be stranded if things go wrong.
5. Every minute of your time has monetary value
Time is money and we all know this. Get as much value as you can out of each working hour and never waste your time on trivial matters. Plan your time and work your plan. This is how to use time for maximum benefit.
6. Focus on customer acquisition
Your customers are the pillars on which your business is built. Focus on getting customers and keep your customers because the repeat customer is your cash machine.
Do not take your customers for granted and always aim to get more customers. This is the secret to business success and expansion.
7. Make sure you pay yourself
The turnover your business brings is not your money. Pay yourself a salary and live on your salary.
Focus on building the business and avoid spending too much money in the early stages of your startup. Your salary should be just enough for you to live on while you aim for growth and expansion.
8. Establish financial goals
You already have a general goal of business success but this is not enough. You need specific goals and milestones.
Break down your goals into weekly, monthly and quarterly goals. As you hit each goal, this will give you the confidence to keep going on the business journey.