Five tips for starting your own business
It can be an exciting feeling when you finally make the decision to start your own business. You dream up all the positive scenarios that could happen in your life and think about all the holidays and material things you’ll be able to buy with the extra money you get from being your own boss. However, to manifest that reality, you need to do certain things correctly, and to avoid some pitfalls. Read on to find five areas that you need to focus on when you are starting your own business;
- Cash flow is key
Nothing kills a business like poor cash flow management. You need to understand how long you can set for client invoices, and therefore maintain good cash flow. Is it pay on invoice? 30-day invoice? 90-day? …And so on.
Also, you need to understand what is the norm in the industry so that you don’t expect something that just isn’t possible. You need to make sure that you have enough cash in the business in order to survive slow periods in the year. You will also need to think about the timeframe between providing products or services and when customers are going to buy them.
- Protect your business
You need to think about growing and insuring your business to the level that will protect your business financially and give your customers confidence. A well-insured business is far more likely to look reputable than a business that doesn’t carry the standard insurance to engage in business in the industry. If you don’t have insurance, your business may suffer or even fail if there is a customer complaint upheld accidents in the workplace, or some other unforeseen event.
- Think digital marketing
We are now in the age of the internet, and it’s vital that you use the web for marketing your business. People will be looking online to see what special thing have in terms of social media and your website. You need to, necessarily, do a lot of digital marketing, but a pay per click advertising in your brand name in your early days can ensure that you get found when people are looking for the kind of products or services your business offers.
- Build up a customer persona
Who is your ideal customer? What are they looking to achieve by interacting with a business like yours? What are the triggers that will cause them to buy from you? You need to build up a picture of the motivations of your potential customers and build overall loyalty.
It can also help to build a demographic understanding of your target market so you can communicate more effectively with them through your website, social media, and face-to-face in the right way. If your customers are middle-aged, financially independent people who have an independent spirit and value security, you may market to them and talk to them differently to if they are 20-year-old students looking for adventure.
- Always think about the return on investment
It is very easy to get stuck in activities that don’t drive revenue and profit. Focus the majority of your time on things that will make you money, and avoid those tempting activities that are peripheral and won’t help you to build your business.
Do the important and urgent tasks and then the not-so-urgent tasks before you do the unimportant things in your business. Administrative and unimportant functions should be delegated wherever possible so that you can focus on the things that make a difference, and the things that you are best at
Building a business is an exciting process, but you need to treat it like a business, not a hobby. Make sure that you are mentally prepared to work hard, make some tough decisions, and get customer-focused.
Join the FREE Newsletter
Subscribe to more PF Advice and helpful tips straight to your inbox.