Starting a new business is typically a fraught affair loaded with a great deal of uncertainty, the spirit of opportunity and a great deal of excitement and trepidation. Success is far from certain, with half of new businesses failing within the first year, and close to 90% within the first 5 years. You need to be able to plan and execute your business strategies, but what can you do to increase the odds in your favor and be a successful business owner.
The Best of the Best Business Start Up Tips
Never Run Out of Cash
Cash is absolutely vital for your business: you must have sufficient liquidity on hand to meet debts and expenses as they fall due. The biggest reason for business failure is lack of cash, and there are a number of reasons why lack of liquidity arises. In the context of a new business startup, the main reasons are because of an inflated estimate of sales (and how long it will take to get paid) coupled with insufficient startup capital. Underfunding a new venture is a common mistake amongst entrepreneurs, but this will strangle a business before it gets a chance to become established.
Hire a Business CPA
There is no better professional investment than hiring a good CPA. A business accountant will help you maintain control over your business, and especially the finances. They are indispensable when it comes to dealing with the numerous agencies involved in the business world, not least the IRS, which is the organization responsible for more business bankruptcies than any other.
Establish Your Sales Function
Without sales you are going to be out of business as soon as your initial startup capital is expended. Nothing is more important to any business, even a long-established one, than the sales pipeline and you must establish an effective way to attract new business. How you do this will depend on your specific business, but you must establish a route to customers quickly and profitably. Do not confuse spending money on marketing for selling: selling is about taking money off paying customers, while marketing deals with more nebulous concepts such as branding or educational awareness which is not putting money into your bank account.
Top 3 Startup Tips Conclusion
Remember that more than half of new businesses will fail in their first year, so follow these tips to minimize the risk and get the most out of your dreams. If you run out of cash you are out of business, so maintaining liquidity is essential. You need an accountant or book-keeper who knows what they are doing and will work closely with you to control your finances. Lastly, your lifeblood is sales and without the ability to sell you are going to run out of cash when your initial investment is exhausted, but an effective sales function will allow your business to grow and thrive.
The Best of the Best Business Start Up Tips
Never Run Out of Cash
Cash is absolutely vital for your business: you must have sufficient liquidity on hand to meet debts and expenses as they fall due. The biggest reason for business failure is lack of cash, and there are a number of reasons why lack of liquidity arises. In the context of a new business startup, the main reasons are because of an inflated estimate of sales (and how long it will take to get paid) coupled with insufficient startup capital. Underfunding a new venture is a common mistake amongst entrepreneurs, but this will strangle a business before it gets a chance to become established.
Hire a Business CPA
There is no better professional investment than hiring a good CPA. A business accountant will help you maintain control over your business, and especially the finances. They are indispensable when it comes to dealing with the numerous agencies involved in the business world, not least the IRS, which is the organization responsible for more business bankruptcies than any other.
Establish Your Sales Function
Without sales you are going to be out of business as soon as your initial startup capital is expended. Nothing is more important to any business, even a long-established one, than the sales pipeline and you must establish an effective way to attract new business. How you do this will depend on your specific business, but you must establish a route to customers quickly and profitably. Do not confuse spending money on marketing for selling: selling is about taking money off paying customers, while marketing deals with more nebulous concepts such as branding or educational awareness which is not putting money into your bank account.
Top 3 Startup Tips Conclusion
Remember that more than half of new businesses will fail in their first year, so follow these tips to minimize the risk and get the most out of your dreams. If you run out of cash you are out of business, so maintaining liquidity is essential. You need an accountant or book-keeper who knows what they are doing and will work closely with you to control your finances. Lastly, your lifeblood is sales and without the ability to sell you are going to run out of cash when your initial investment is exhausted, but an effective sales function will allow your business to grow and thrive.
About the Author:
Max Andersen writes about online marketing and recommends www.KarlHindleSEO.com for Internet marketing.Click this link to find out more about SEO.
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