Starting a new business is not a simple and straightforward operation. There are plenty of things that business owners need to consider for getting their business up and running. On top of that, there are many factors they need to closely look at for surviving.
The first year of any business is crucial among all. Even with an initial high investment and a lot of planning, many businesses fail to survive their first year. Doesn’t matter what type of are planning to start, you surely need to keep on your toes.
In this post, we’ve come up with a list of top five things to take care of for surviving the first year in business.
- Put the Running Finance Aside
Only a handful of businesses make profits in their first year. So even if you pay for your running expenses from the money generated from your business, consider it as a success. It’s therefore important for you to save your earnings for funding day-to-day operations if you want to give your business a fighting chance.
In addition, if you are setting up a small business with personal finances, make sure you have already saved a decent amount of money in the bank to pay for the running expenses. If you are planning to take a loan for running expenses, make sure that you have access to that money before you start your business.
- Hire Suitable People
When starting your business you don’t want to make any mistake. Certainly, you don’t hire people that are invaluable for business and just be an expense in your accounts book.
Make sure you hire the most suitable people for different roles with respect to their expertise and experience in the field. Shortlist only those candidates that have a genuine interest in your industry and can be a good fit for your company. Ask those candidates to come for the interview who really know how to do their job and what is expected of them.
Even the professional business industry writing experts at the premium essay writing service UK recommended new companies to hire suitable people for surviving the first year of their business.
- Create a Business Logo
No matter how small or big your business is, you need to establish your own business identity. And a crucial part of that identity is your business logo. Your business logo doesn’t just mark your products or services; it helps in telling your story to the outside world.
A business logo helps in differentiating you from others. It helps in conveying your brand’s right personality, evokes an emotional response and aid to build your brand through promotional merchandise. Surely, it plays a good role in establishing a relationship with your customers.
- Don’t Get Overly Excited About Profits
When you are lucky enough to get profits coming in the first year of your business, hold on tight and don’t get overly excited. Keep in mind it’s just the first year of your business, so there is no point getting too much excited about things. Rather you should keep focusing on the things to run the business the same way and avoid getting greedy to make sudden changes to make higher profits.
Make sure to continue what you are doing well and work on your business strengths to continue generating the same revenues. Keep in mind; even if you get a slight hint of profits in the first year, it’s a good sign for your business. So, don’t try to do something different to quickly boost profits and end up going into losses.
- Start Local
Whatever your business niche is, you should first focus on regional opportunities and then look to penetrate nationally. When you just enter the market it’s difficult for you to compete with other businesses that are operating nationwide.
Moreover, it’s important for you to get a good position in the local market first so that you can straighten up a number of things including your financial position, create a strong identity and enough experience to start your business in a different geographical location.
Your first year in business is critical. Therefore, your first objective should be to make every effort to survive it. Taking care of the above points can dramatically improve your chances of surviving in the first year of your business.