That first year in business is tough. You are effectively starting from scratch. You need to develop your products and services, build up from zero customers, and get the word out about your company. A lot of trial and error is also involved as you get to grips with running a business.
As a result, it shouldn’t be a surprise that approximately 20% of small businesses are unable to make it to the other side of that first year. To make sure you don’t add to that statistic, here are five tips for surviving that all-important – and difficult – first year in business.
1. Create a strong business plan
A strong business plan is built on research. With this research, you learn a lot about your business, the industry you’re operating in, the competition, and much more. This information is key for making informed decisions – the type that will help you navigate the treacherous waters that are year one in business.
As for what aspects to look into for your business plan, Transmit Startups has a guide on 21 things to research before launching your company.
2. Different selling avenues
Using as many selling avenues as possible is advised for any new business. While this might not be possible for the likes of local service-based companies, those selling products can venture onto different avenues. For example, along with selling in a physical store, a business could use the likes of Amazon, Etsy, and eBay to expand their reach and rack up more sales.
3. Have financing on the back burner
There’s a primary reason why a lot of businesses struggle in their first year: lack of funds. A new business has a lot of outgoings and, in most cases, not much coming in to counter those losses. This is particularly the case if you’re dealing with customers not paying their outstanding invoices.
As a result, it makes a lot of sense to have suitable financing in place when issues do crop up. By using spot factoring, for instance, it is possible to receive funding against the invoices still waiting to be paid by clients. You can choose to do this with one invoice or several as and when you need it, and this allows you to instantly improve your cash flow. Take the time to learn more about spot factoring from expert financial brokers.
4. Promote, promote, promote
Sustained marketing efforts are necessary when starting a new business. You might have put in a large effort to get the word out for launch day, but you have to carry that momentum throughout. Due to this, you should have a long-term strategy in place to promote your company. This could be with social media, PPC ads, video marketing, and so on. Either way, consistency – along with talent and a dash of creativity – is key.
5. Set targets
Targets give you something to aim for with your business operations. These can be short-term goals, such as reaching a certain number of sales for the month. They can also contribute to your overall long-term targets, such as turning over a certain amount of profit and, ultimately, surviving that tricky first year.
