Many small businesses fail to make a profit their first year. You need to constantly invest in start-up costs such as inventory management software, inventory, labor and marketing.Unfortunately it still takes money to make money. There are some things you can do to be survive your first year of business. Read this article to find out how.
1. Define what success is to you. Before you can know that you have successfully survived your first year, you have to know what success looks like. Does it mean being wealthy? Does it mean having time freedom? Does it mean that your business can run whether you are there or not? Once you know what success looks like, you can begin making a plan to accomplish your goal.
2. Don’t try to do everything at once. Small business owners have a bad habit of wanting to implement all of their good ideas at once. It is bad to try to develop too many ideas at one time. Instead, jot the idea down and make a plan to implement it later, after the current idea you are working on is profitable. There’s nothing wrong with multiple streams of income. You just have to make sure that you don’t get distracted or confuse your potential clients with too many different marketing messages.
3. Make sure you have enough money saved to cover your living expenses. Running a business is an up and down experience. Some days you have good months. Some days you have bad months. Make sure you have saved enough money to get you through difficult times before you quit your day job.
4. Don’t try to do everything alone. Many entrepreneurs think that they have to do everything in order to be successful. That is not true. If you can afford to, delegate tasks that don’t immediately generate revenue. During your first year, your energies need to be focused on generating income. You are distracted when you have to worry about administrative details that don’t bring in income.
5. Involve your family in your business plans. Your family will be impacted heavily by this decision to become self-employed. If your family isn’t fully on board, your business will be dead before it even starts. Be sure you have a plan for who will be responsible for household chores. Your spouse will get resentful if he or she finds out that they have to do chores that you normally do.