8 simple things you should know when starting a new business.

 

As a small business and entrepreneur, we have all gone out and made our own mistakes which, funny or not, is “part of the fun” when starting a new business. Lest we forget, we are not the first, nor the last to make the same mistakes over and over again. Here are a few tips that we should all heed from those who did not.

1. Your business is priority

It is the case particularly in the early stages that you do not actually start out doing what you originally set out to do: your job. Instead, you have to realise that your new role is that of a business person, one that needs business and in that respect, needs a sales person.

You will learn this fact fast without us having to tell you but having confidence in yourself is the key. If you believe you can provide a valuable service then selling will be that much easier. There are however a few additional skills that you will invariably need to understand to some degree in order to be able to effectively manage the business properly.

You will no doubt be better off employing a professional accountant, web designer or marketer for experience and knowledge but initially most entrepreneurs try their own luck, with some being luckier than others.

2. Cash Flow

Many business find it difficult to startup because of the costs associated and not being able to manage cash flow effectively. This is one of the primary reasons 66% of businesses fail in the first 5 years. Having sufficient cash to keep going especially in tougher times gives business a better chance to stay afloat.

Managing and forecasting cash flow predictions is a tough game and it is always best to be prudent. Spending lavishly on expensive equipment is still not going to get you clients. Justify the expenses as necessities if things are tight and forecast times of the year that may be quieter than usual.

3. Email Lists

Growing your client base is the most important thing you can do. You want to grow them and more importantly keep them. You also will need to grow your list of leads and by joining leads and existing conversions, you will both grow and maintain your client base.

Create content and send out information circulars regularly but not that regularly that you will become annoying. Make sure they are interesting or before you know it, you will be in the spam folder. Send the right messages to the right people.

4. Tools

As discussed in our previous post regarding open source software, make sure you get the right set of tools to suit your needs. There are many free tools available but if you can’t manage to afford the brand names that we are used to. Here are 200 tools you may want to look at to help you on your way.

5. People not profit

This is a very socialist statement but if you try to help people solve a problem and not focus on profit, it will benefit your business. You do have to live of course but many business owners successfully adopt this policy and people value that. If you are customer focused, the customer will recognise and appreciate it.

6. Backup plans

Being a “Jack of all trades” can be a good thing. It means you can have different skills and perhaps various income streams therefore meaning you don’t rely on just one. Markets change and we know this all too well from the Celtic Tiger crash which dessimated our building sector leaving hundreds of thousands without work. Diversification does not have to be drastic but if you have a skill that is required hail, rain, sun or snow it will give you that extra confidendence and perhaps could be the “bread and butter” of the business that keeps everything going.

7. Taxes

This is your responsibility and you had better find out fast what you owe. Unfortunately Revenue do not take lightly to those who are not contributing. Saving 30% of your profit for taxes is prudent as the end of the financial year comes around fast.

8. Relationships

Building a good relationship with a customer means that they will “come again“. Apu, from the Simpsons was a master at building relationships. He also had a shotgun when those relationships turned sour but we do not condone violence at iBrutes.

Build a network through events, social media, the pub, at dinners or wherever the opportunity arises. Don’t hound people as you may be mistaken as a stalker but stay in contact. Weigh up the value of clients and potential clients and try to be more a cloaked stalker instead a standard one. Much more fun.

Foresight will make help your business succeed as they say, “Rainy days fall mainly on those who forget their umbrella”. –