In 2020, over 804,398 businesses were less than one year old. This is up over 100,000 from last year if you have been thinking about starting your business, first congratulations on taking the step to become a business owner.
While everyone has the dream of starting their own business, many do not think about the hard and backhand, and in some cases, beforehand work that comes with it. To make sure that your business is around for the long term, here are 6 simple but effective tips for framing your business.
1. Proper Planning, Planning, Planning!
It does not matter what your business concept is; no business will be successful without proper planning. There is no way around making sure you have a plan for success.
While planning looks different for every type of business, there are a few tips that everyone can benefit from. First, plan a goal of when you would like to launch a business. Most new business owners in 2020 have stated that writing down a launch day and sticking to it helped them keep their business goals on track.
Once you have a launch day planned, it is easy for you to plan the materials and other things your business needs. For example, if you know you want to launch your business in exactly one year, you can find a business space and save accordingly so that you have everything you need to plan successfully.
2. Make A Budget
Even the world’s largest businesses operate with a budget. Budgets help you know where your business money is going and coming in.
Although budgets are the best way to strategize and grow your business, a 2018 survey found that at least 60% of small businesses operate without one. This is dangerous because any major expense will be hard for them to recover from.
The best way to create a budget is to figure out the business’s fixed expenses and how much money is available every month. Then you can make a spreadsheet of other expenses such as expansion ideas monthly inventory.
3. Find Ways To Save Costs
Once you have a budget, the next thing to help get your business off the ground is to find a way to save costs on your business. While this doesn’t mean giving out inferior products or services, it can be beneficial if you take on fewer expenses as a new business.
One way that many new business owners have found to scale back on costs is to reduce shipping materials. Many businesses are doing minimal packaging so that they can focus on the importance of their product while saving money in the process. Not only does it save the environment, but it also saves the business money as well.
If you have a business that needs construction or industrial items, consider plant equipment hire. This can help you scale back on the cost by renting expensive equipment, such as a forklift, and being able to still get the job done.
4. Prepare A Backup Plan
While everyone wants their business to make profits in their first year and even 6 figures. Of course, you should always have a positive outlook on your business. The truth of the matter is that it does not work out that way.
The best way to prepare a backup plan is to look for weak spots in your business & come up with a plan B for it. For example, if your business has to be closed down due to the pandemic, find a way to still operate while still being in subjection to the state and local laws.
5. Rent or Buy?
Something else that over 80% of small business owners don’t put much consideration into is to rent or buy things to make their business successful.
For example, do you really need to buy a building for your small business? It may not be financially practical for you. On the other hand, it may be cheaper for your business to buy a computer system instead of renting one out.
Whatever one you choose, ensure it does not break your business budget.
6. Not Everyone Wants You To Succeed
The most essential thing to remember before you plan out anything for your business is that you have to be your main motivator. Unfortunately, not everyone wants to or even cares to see your business succeed. Some may even try to take the business down.
Most new business owners have found that the best way to stay positive is to reflect on how far they have come and written down their thoughts and feelings about your business.