How to avoid these business start-up traps
When you’re starting your new business venture it’s easy to trip up if you haven’t fully thought through your idea and planned for success. It is true that if you “fail to plan” you “plan to fail.”
Through Tradesource, we offer members several avenues that can propel their business toward financial success. Here are our top tips to help your business venture succeed:
- Plan for growth: Sure you’ve just opened the doors, and things are going gangbusters so you might think it’s prudent to think of expansion. We caution you to enjoy your prosperity for at least a year. Businesses that grow too quickly sometimes find themselves overwhelmed with running two locations or spreading themselves too thin. That is a recipe for failure.
- Did you do the math? You have a great idea for your product and service and you have a niche market, but is it “too niche”? If, for example, you’ve exhausted all avenues of those who need your widgets and if your widgets are so well-made that they don’t need replacement, what will you do? Make certain there is enough
demand for the product or service you offer to support your venture. - Are you your own worst business partner? How are you to work for, or with? Are you stubborn, averse to risk and conflict? How are you at networking or selling? No matter the product or service you’re offering, you have to sell it, right? If you are more of a behind-the-scenes manager then you need to have an upfront person who can be out there networking and selling your goods or services.
- Speaking of networking…: Are you a member of networking groups? Do you know which groups will best benefit your business? If you’re a widget salesman, and only attend widget salesman functions, chances are you are not going to find individuals who need your product. Go outside your sphere of comfort and attend a group that’s never heard of widgets – that’s your audience.
- What’s your cash cushion? When starting a new business, cash flow can be an issue. Entrepreneurs who are looking to succeed – and who isn’t – should consider joining a trade association group. With trade, you have access: a) to a new group of individuals who want what you have to sell and b) to goods or services you need (think accountants, graphic designers, public relations professionals, even medical and dental professionals) that you can get on trade, thereby freeing up cash for other items to keep your business viable.
When you’re just starting out, it’s all new and exciting, but with planning, and forethought, your business can be a viable operation that can support you and your family for the long run!
