Being your boss can be exciting and demanding at the same time.
Starting a business and watch the business grow is the challenge most startups usually encounter.
Most times, funding is the main issue but inadequate preparedness can be a factor too.
You nursing a business without developing a plan can affect your business. You still need to know the nitty-gritty of the business before you start.
Startups fold due to poor planning, lack of business orientation, and poor financial management system.
Before you start a business, it is expected you’ve dully carried out adequate research on the business you plan to venture into.
If you’re planning on starting a business anywhere, here are tips to guild you
1. Set your financial goals
Since finance can be the deciding factor on whether you stay or quit the business, it is pertinent you know the cost implications before you set up the business. 6 Tips for Starting A Business. If you intend to run the business alone, the cost will reduce but you need to make plans for expansion.
Your financial goals should include overhead costs and have a target amount you expect to be generated at every month-end. Put them in your plan.
Plan your business with the available resource (money) you have
To do this, you do not necessarily need to be a great accountant for you to do this. No doubt, having basic accounting skills would help you. Or you can hire someone to help you out.
While setting your financial goals, you should have solutions/ answers to these questions.
· What is your monthly income expectation?
Every business owner/CEO is open for success. No matter how young the business is, having a target should be included in your business plan.
You can set as daily income then multiply it by the number of days of the month. This should be your expecting figure or income.
Setting a ridiculously high target may cause you some heartbreak, you must set a feasible amount and work towards it.
· How do you intend to pay your staff( if you plan to employ)
Remember, you’re still new in the business. Offsetting bills is very challenging for so many entrepreneurs. 6 Tips for Starting A Business. You should decide on time if you’re going to pay your staff on commission-based or place them on a basic salary.
Having workers placed-on commission-based for a startup can help save costs and improve productivity.
As time goes on, you can now place them on full salary because things might have improved for the organization.
2. Time management
Be time conscious. You are the boss does not create room for laxity. 6 Tips for Starting A Business. You should have a resumption time as well as a closing time.
Work as if you’re still an employee. Resume when you should.
Time management is key. Your absence can drive your clients to your competitors.
Aside from that, the first impression matters a lot. The impression you might have created would remain so.
3. Have a separate account for your business
The essence of having a separate account set aside for the business is to enable you to track your spending.
The income generated from your business should be used to run the business.
And in a situation, you need funds, there can be alternative sources.
Just as you intend to pay back the loan you collected for your business, you should also do so to your account if you lifted some funds from there.
You should try everything possible not to tamper with your account.
Your account can be used to run other financial needs in exception to the business.
4. Understand your cash flow
Knowing how much flows in and out of the business is quite an impressive tips for startups.
You should keep track of every spending.
Even if you do not have an accountant to oversee this function, you as the boss should be doing this regularly.
For instance, money spent on stationaries, and other day-day spendings should be recorded.
The calculations would enable you either improve on production as the case may be or it will warrant you cut down on your spendings.
Your cash flow is a way to know your strength or area of improvement towards reaching your financial goals
The better it is the brighter the future of remaining in business.
5. Cut down on your budget
Starting a business with limited resources may hinder the progress of the business. In this case, assessing loans may be necessary but not easy especially for new businesses.
It is therefore imperative to do or manage with the little resources you have.
You should understand your cash flow, and be mindful of your spending. 6 Tips for Starting A Business. Make sure your expenses are not above your expenditure/income.
That’s the reason you must understand and know the financial strength of the organization before you come up with the decision to place your staff on salary.
In a situation where the business can only pay for five staff, then go ahead.
You can also check other things which no doubt are important but not necessary for the organization.
For instance, you can cut down your budget on branding and advertisement.
Startups need advertisement in promoting their brands, in cutting down your budget, you choose cheaper advert plans and means.
Most times, it is not the amount you spent on advertisement that increases productivity.
6. Go for the best hands
You can have at least two qualified persons as staff than having the office filled with inexperienced hands.
No sentiments attached to business. 6 Tips for Starting A Business. As a startup, you need creative minds to push the organization forward.
You employ based on the experience and capability of the individual.
You set target for everyone including yourself. This tip enhances productivity.
As an entrepreneur, you are a problem-solver. Do not start a business that the market is not readily available. Carry out a feasibility study on the market and location of the business before you start.
To avoid starting and backing out so soon, use these business tips provided in this article. 6 Tips for Starting A Business. You can apply the tips to any kind of business anywhere.
Seeing there is a constant flow of income and recording maximum profits which is the major aim of establishing the business, you must have a work plan and be prepared for more innovative ideas.
Stay patient and try to improve on the business. Your ability to withstand and learn on the business will make you stronger.