One of the riskiest times for any business is first year . According to a famous Survey in the first two years, three of every ten startups expire and by five years, half those startups are history. Rome wasn’t built in a day, and neither will your company. It’s typical for everything to happen at a slower pace. In a digital age that enables just about anyone to launch their own company, it’s critical for you to know how to properly navigate the first 12 months of your budding business . Here are some important things You must Know for Surviving Your First Year in Business
Make a commitment : Make a commitment to yourself that you are going to stay in business for at least 4 to 5 years. The vast majority of businesses that fail do so within the first two or three years. It’s true that the first two years in business is the hardest, especially for someone who is brand new to owning a business, has no experience managing staff or dealing with accounting . However, these are the years that you will learn the most and glean the most wisdom and knowledge that will pay you back in spades later on. When you set out to build your businesses commit to five to stay alive.
Talk to customers : Doing market research at the start can help you avoid so many mistakes. You’ll have the right offer, at the right price, in the right market.
Choose your location Carefully : Whether it’s a great website URL that’s easy to remember or a retail location with enough foot traffic, make sure your business is where it needs to be.
Establish good credit : you will be spending more money than you earn during your first year of business. Very few companies make much profit during their initial year – if any profit at all. The old adage rings true: It takes money to make money. A good rule of thumb is to have at least one year of savings in the bank to live off of before you quit your 9 to 5. If you are not planning on finding investors, take out a small business loan from your bank or raise capital before you even try to launch your company.
Proper Marketing : It’s important to get the word out about your business before you even launch. Internet marketing is a cheap and efficient way to generate buzz about your brand. This is something that you can even do yourself with the help of a webpage and social media accounts.
Most Common Issues During Your First Year
1.Having too high expectations for your company during the first year
2. Not spending money wisely
3. Selling yourself first and not the company
4.Cost benefits and profits not taken into consideration
As you can see, there are many hurdles in your way during your first year of business. If you are going to grow your company to its full potential, it’s critical that you keep the aforementioned tips in mind .