Beginning your own business is one of the most intimidating things one can do in life and the statistics out there stating that 98% of start-ups fail within the first five years aren’t any better. So, why is there then such a large gap of start-up’s that are thriving and start-ups that are in-debt and failing miserably all together? The following are our six do’s and don’ts of starting your own business.
Don’t Keep All Your Eggs In One Basket
Eggs in this instance mean customers, the fact is that companies often fall into financial trouble not because of their service but because of their lack of customer diversity. Too often start-ups fail because they will concentrate all their resources and time on the “whale” or the most important customer. However, when that customer suddenly leaves the end result is the company also taking a huge cut in their revenue. Therefore don’t keep all your eggs in one basket.
Don’t Underestimate The Importance Of Financial Consulting
You captured that big lead you where going after and now the company is generating a healthy amount of revenue, but your daily expenses such as utilities, payroll, and other small budget items are cutting into your profits, what do you do? The best method to avoid these types of situations is to invest in financial management tools. Today the market offers a plethora of tools in the form of online software and the traditional on-site consulting.
Don’t Rely On The “Business As Usual” Strategy
Unfortunately, some of the most common reasons that start-ups tend to go under are connected to unplanned situations. These can include the loss of a key employee or worse situations such as a lawsuit. Sitting down and formulating a proper response to each situation can save you not only great amounts of money but maybe even your company.
Do Track Your Company’s Progress
One of the key components of a growing company is their ability to measure how well they have been doing throughout the year and how they can improve. Company’s that handles any alaska cruises continues to progress because they keep track of their passenger growth year after year and therefore understand the areas they need work on. A company whether small or large requires this type of observation.
Do Seek Mentorships
Nothing teaches better than someone who has been there before, done the mistakes and conquer their field. Therefore, we cannot stress the importance of seeking a mentor in the industry your business is in, it might just save you large sums of money due to error and even your company’s future.
Do Continue To Innovate
Often new company’s tend to sit on their laurels leading to their business eventually plateauing and going out of business. Stepping back and seeing yourself as the consumer is a very important stage in a business owners journey, the ability to criticize your own product and or service and ask what can be done to innovate it may at the end of the ay save your company form going stagnant.