5 Top Tips To Survive Your First 12 Months As A New Business
Starting a new business is scary enough; especially if it is your first time as an independent business owner. It is more than likely you have invested your own money or maybe even enlisted the help of family and friends to get the financial ball rolling, as well as putting your blood, sweat and tears into ensuring that the business is up and running in time for launch day.
However, you are not out of the woods just yet.
Statistically, 50% of all new business ventures will not make it through their first year of trading. Sad, but true.
Of course, you can be the 50% that succeed; if you know what it is that you need to do to survive the first tough year ahead of you.
1. Keep your initial costs down
You may think that a spacious office will attract new clients and make you appear more established as a business, but until you have a solid and loyal customer base and the need for more employees, it can make more financial sense to.
You should also only hire the number of employees that you really need; utilize the services of freelancers or contractors for particularly busy times such as the holidays, rather than taking on new full-time team members.
2. Forgo your own paycheck
If you are used to a regular salary, this can be a hard pill to swallow. Unfortunately, if you want your business to survive its first year, then you need to invest as much money back into it as possible. Of course you must pay your employees, but sadly, you may have to go unpaid yourself for at least a few months, or maybe longer.
3. Focus on your customers
You may have spent years working on your product idea and feel that you have the best design ever created, however, if your customers are telling you otherwise, you need to remember that it is them who are paying the bills (so to speak) and keeping your new business afloat.
Therefore, it is vital that you listen to and act on customer feedback. If necessary, it is then important you make changes to your product or the way you market it.
The ability to learn from your mistakes is a key skill that all entrepreneurs need to master.
4. Be HR aware
If this is the first time that you have hired your own employees, you may not be very educated in the importance of HR and the need to look after them. It can be very easy to get caught up in your new business; making as many sales as possible and ensuring that you meet customer demand. However, unless you want to find yourself with no employees, or worse, an employee who is taking you to a tribunal, you need to take their needs and requirements into consideration.
Inpulse.com are employee engagement experts who can help you get the most out of your employees as well as ensure that you cater for their emotional needs and wellbeing.
5. Network, network, network
It’s not what you know, but who you know. This is a well-known phrase for a reason and is especially true for new business owners. The more people who know about your business and what you have to offer, the better.
Reach out to other small business owners, experts in your chosen field, potential customers and even potential business partners who may be able to bring something new to the table.
The key to successful networking is making sure that you give as much as you take.
Do not schedule a meeting with another business owner and then constantly bombard them with questions; make sure you also take the time to listen to their grievances or issues and offer advice where possible.
© New To HR