A Simple Guide for First-time Business Owners on Surviving the Critical Phase
Apart from success stories, there are a lot of precautionary tales that were published with regards to keeping a business afloat, especially for starting businesses. Most of these horror stories were about not being able to pass the critical stage – or the first year of the business.
Although some of these business failure stories are true, there are some lessons you can take from it to ensure the consistency and success of your business. If you are a first-time business owner who just launched your trade, these simple tips can help you to overcome a business’s critical phase.
- Create a solid business plan
One of the biggest mistakes that startup business commit is not having a concrete business plan. A business plan serves a guide to lead the business in the right direction. This contains your business objectives, the strategies you want to implement, your business model, and action plans. Without a business plan, your company will be susceptible to mismanagement since there is no clear direction set to follow and there is a slim chance that your business will survive the critical stage.
- Monitor your expenses
Financial drain is common in new businesses. Since they are testing the waters, shelling out money is imperative. But you have to keep this to a minimum. It is important to keep your business expenditures low to prevent messing up your cash flow. Be smart about where you spend your business money. As much as possible, keep tabs on your business finances.
- Build your network
For new business, competing with the big leagues is definitely a suicide. But if you cannot beat them in their own game, the least you can do is join them. Associating your company with large enterprises and esteemed organizations can help with increasing your brand awareness. During this stage, you need to grow your network to up your chances of meeting potential clients and investors. The more people you know, the better.
- Get a good team
It is imperative for business owners to get the right people for the job to ensure that their business goals and action plans are being implemented. Which is why, getting top talents is a must. Do not settle for unqualified candidates because your business is new. In fact, during the infancy stage, you need to get the best people who can help you get out of the critical phase as soon as possible.
- Do not be overconfident
Hyperactivity is a common occurrence in businesses, especially the new ones. During this phase, the curiosity of the people of the people towards your business is high. Do not be complacent. You need to work harder to sustain such level, so you will be ready when a plateau in business performance sets in.