Starting a company can be an exciting and liberating journey. It can be your escape from underemployed, unemployed, or miserably employed. The idea of becoming your boss or escaping from job instability can be so therapeutic. However, statistics proved that 86.8% of new Canadian businesses make it past year two, but about 7,000 businesses go bankrupt each year, a number which can be quite scary for a new entrepreneur. But why do some companies pick up quickly while others crash? Check these tips to get your business to a great start.
Have A Solid Business Plan
Successful businesses share one thing in common; a solid business plan. Yet, many business owners start their businesses without creating a plan. How would you not? A business plan is your guide, and if you don’t have one, the odds are you will most likely get lost along the way. Invest time to create a plan before embarking on this journey. It is not as daunting as you may think, and the benefits of having one should inspire you. A good business plan must clearly state:
- Your company goals
- Your budget and business projections
- What your competitive advantages are
- Your main risk and how to manage them
Prepare A Realistic Budget
After drafting your business plan, you will need to put together a financial plan to help you achieve your goals. Budgeting is a part of a strategic planning process that considers the money required to complete your overall business goals. Your budget should cover three years at least. For a new business, budgeting can be overwhelming, especially when there are unexpected expenditures. However, you are advised to adjust and stick to it. Keeping an eye on your finances is very important, particularly in the first months of your operations. New businesses have limited resources since they don’t generate enough cash initially, but the more you run at losses, the harder it is for you to succeed.
Build Your Network
Running a successful business is more than just what you know but rather whom you know. Strong connections can offer you essential business guidance. These connections also introduce you to suppliers and expert services. If you don’t know many people, then it’s time to enhance your contact list. The best way to get this right is to attend seminars and conferences where you are most likely to meet industry players like product managers, supervisors, financial experts, etc. A strong network is your most reliable source of meeting potential customers and investors- vital for your business success.
Knowing yourself is very important to the success of your company. Before starting your business, honestly assess your personality to determine if your business choice is the right fit for you. Do you have the traits to survive in such a business? What are the skills required to be successful in such a market? If you have a smooth-sailing rollercoaster personality, then you’ll have to adjust before starting your new business. Being a business owner and starting a business is no easy task. You will need to be passionate, motivated, creative, and risk-taker to survive.