This article was written by one of our amazing contributors! Content may include promotional links.
Although it may seem like certain businesses like Clockspot and Weiss-Aug never struggled as they made their meteoric rise toward success, you would be surprised to know that those companies also experienced growing pains just like you. So if you’re looking to become a respectable equipment distributor like http://www.iconjds.com/ or you’re starting another business in another industry, it’s important to use every resource at your disposal to survive your first year in business.
No one said that owning a company is easy. It’s going to be challenging every step of the way, but the first year is usually the most difficult year to overcome. Therefore, read through these tips and use them to your advantage and your first year in business will go much smoother.
Build A Nest Egg
Many brand-new business owners make the fatal mistake of jumping into their new company without having some form of a nest egg available to support them during this transitional phase in their life. This is a huge mistake because you’re putting unnecessary pressure on yourself and your brand-new business to succeed because you need it to deliver a paycheck so you can survive. Avoid this mistake at all costs if you want to give your business a fighting chance at achieving lasting success.
Instead, make sure you have a large enough nest egg available to help you get through the first year. You should avoid taking a paycheck altogether if you can afford it, and continue to pump any income you make back into the business to help it grow and expand. If you do not have a healthy bank account available to support you during this time, it may be best to start off your new company on a part-time basis and continue to work in your current job.
Starting a new business is never easy and it’s difficult to turn a profit during the first year in particular. So be prepared financially, have a healthy nest egg available to support you, or work on your new business part-time while still working in your current job to guarantee a measure of financial security.
Have A Backup Plan In Place
Unfortunately, there are no guarantees that your new business is going to succeed. So it’s always best to have a backup plan in place in case you need to change direction. Again, you may have an amazing idea for a business but it might take years for you to reach success. In the meantime, you have to be able to make ends meet, so plan to fail and plan to put contingencies in place that will help you survive during such a difficult time.
Consider Unexpected Rainy Day Costs
At the beginning, you may create a budget for specific expenses needed to get your new business off the ground. But more often than not, new business owners fail to realize all the potential expenses when first starting out. So it’s necessary to have a rainy day fund available to cover unexpected costs you may have unintentionally overlooked.
As an example, let’s say you budgeted for brand-new computer equipment for your office. But you forgot to budget for the software you’ll need to buy to keep your business running smoothly. Your rainy day fund will cover these expenses.
You should be aware by now that it’s difficult to reach the level of success you desire in your first year of business. Proper planning and preparation is necessary to take your company to the next level. Please use these tips to achieve bigger and better results while surviving your first year in business.