Starting a business is an exciting time full of the promise of a prosperous future. Some of the most successful entrepreneurs started out with a small business, including Richard Branson, who had a mail-order record store. Entrepreneurs have to possess self-belief, determination, tenacity and drive in order to build a thriving business venture.
There are some steps to be aware of that will lay the foundations for long-term business success:
Cater to demand
Rather than selling products or services you believe people would like, stick to building a business that provides what people actually want. It may seem like a good idea to move into an area that has less competition, but the market is unproven and you could end up with very few sales and no prospects. Stick with a product you know has high demand, with a unique selling point to stand out from the competition.
Concentrate on cash flow
A solid cash flow will act as the basis for a thriving company. Start building and maintaining your cash flow as soon as possible. Rather than provide credit immediately, ask for an upfront deposit and balance of payment on delivery.
Keep costs low
Strive to keep start-up costs as low as possible, especially during the first year. Negotiate with suppliers and vendors to secure a better deal, whether this is for office furniture, raw goods or business premises. Only buy what you have to, so that you don’t end up with surplus stock or goods that aren’t sold. Start small and increase orders as your business develops. Offer to pay invoices early, or in advance, in return for a generous discount.
Outsource
Rather than struggle to deal with all aspects of the business yourself, outsource to a professional who can offer the benefit of experience and specialist knowledge. This is especially beneficial for company finance, as outsourcing finance matters to an expert will maximise revenues. Payroll, accounts and other duties can be complex and time consuming, distracting you from the real business of sales.
Don’t undersell yourself
Don’t be tempted to set prices too low as a way to temp more buyers; you will end up losing money. Instead, set prices at an average level and offer value as an incentive. Offer something free with each purchase, whether it is a small offering or information. This will set you apart from competitors.
If you have any tips of your own for start-ups or would like to discuss any of the topics raised here, please feel free to get in touch with us today.