Suggestions to help get your business off to a smooth start and
keep it going for the long haul.
Save up as much money as possible before starting.
Save up as much of the needed investment money as possible, including your living expenses for the first year, or even two. Odds are that your business won't be profitable for one to two years.
- Start on a shoestring.
Think small.
Don't rent premises if you can work somewhere else, and
don't hire employees until you can keep them busy.
(You can hire independent contractors or temps.)
- Protect your personal assets.
When you go into business, you are personally liable for all -
Business loans, Taxes, Money owed to suppliers and landlords etc,
If you don't protect yourself, a creditor can go after your personal assets.
Understand how -- and if -- you will make a profit.
Know your costs - Inventory, Rent, Salaries and covering what is likely to be a long list of other costs.
Then you can figure out exactly how much you need to sell each month,
to cover those expenses and have an adequate profit.
These numbers are all you need to create a "break-even analysis."
- Make a business plan, no matter how short.
With a cash flow spreadsheet in place, as well as a profit-and-loss forecast,
you can tinker with your business idea and improve it before you start.
If you can't make the numbers work on paper,
you won't be able to make them work in business.
- Get and keep a competitive edge.
Building a competitive edge is crucially important to long-term success.
Know more than your competitors,
Make a product that is hard or impossible to imitate,
Produce or distribute your product more efficiently,
Have a better location,
Offer superior customer service
Put all agreements in writing.
Even if not legally required, it's wise to put almost everything in writing.
.
- Hire and keep good people.
Hire and retain truly excellent employees -- not just reasonably competent ones. A highly competent and truly enthusiastic employee is at least two and sometimes even three times as valuable as a person of average skills.
- Pay your bills early and your taxes on time.
A good strategy is to pay your bills up front or pay them early.
You gain trust and build a positive credit profile
These benefits outweigh any interest you might earn by holding
onto your money until the last possible minute.
Friends, there may be some more - let us share.
keep it going for the long haul.
Save up as much money as possible before starting.
Save up as much of the needed investment money as possible, including your living expenses for the first year, or even two. Odds are that your business won't be profitable for one to two years.
- Start on a shoestring.
Think small.
Don't rent premises if you can work somewhere else, and
don't hire employees until you can keep them busy.
(You can hire independent contractors or temps.)
- Protect your personal assets.
When you go into business, you are personally liable for all -
Business loans, Taxes, Money owed to suppliers and landlords etc,
If you don't protect yourself, a creditor can go after your personal assets.
Understand how -- and if -- you will make a profit.
Know your costs - Inventory, Rent, Salaries and covering what is likely to be a long list of other costs.
Then you can figure out exactly how much you need to sell each month,
to cover those expenses and have an adequate profit.
These numbers are all you need to create a "break-even analysis."
- Make a business plan, no matter how short.
With a cash flow spreadsheet in place, as well as a profit-and-loss forecast,
you can tinker with your business idea and improve it before you start.
If you can't make the numbers work on paper,
you won't be able to make them work in business.
- Get and keep a competitive edge.
Building a competitive edge is crucially important to long-term success.
Know more than your competitors,
Make a product that is hard or impossible to imitate,
Produce or distribute your product more efficiently,
Have a better location,
Offer superior customer service
Put all agreements in writing.
Even if not legally required, it's wise to put almost everything in writing.
.
- Hire and keep good people.
Hire and retain truly excellent employees -- not just reasonably competent ones. A highly competent and truly enthusiastic employee is at least two and sometimes even three times as valuable as a person of average skills.
- Pay your bills early and your taxes on time.
A good strategy is to pay your bills up front or pay them early.
You gain trust and build a positive credit profile
These benefits outweigh any interest you might earn by holding
onto your money until the last possible minute.
Friends, there may be some more - let us share.