Any new business will face some obstacles to business growth. Here are some tips for startup business owners to stay competitive and dominate their market.
Market Research:
Are you fulfilling a need for your clients that they cannot fill somewhere else? What is your competitive advantage in the market? You will want to look at pricing, location, target audience, and competition. This will all be reported in your business plan, so do not neglect market research.
Embrace Competition:
Competition in your industry shows there is a healthy demand for your goods or services. It’s unprofessional to smear another company’s reputation. Instead, consider referring customers to your competitors if they meet the client’s need where you do not. They will notice and do the same in turn. Do be sure to keep an eye on what your competitors are doing.
Stay Up to Date Legally:
Falling behind on taxes is an easy way to jeopardize your company’s cash flow. Late payments add on interest to the amount owed. Keep on top of tax payments and industry specific fees (like insurance, permit fees, etc.).
Business Plan:
This may seem like old school advice, but many lenders require to see a business plan as part of the financing approval process. Apart from the access to traditional funding institutions, a business plan is the road map to success. Having a business plan allows an entrepreneur to separate the essentials from the distractions in their operations.
Hire Diversely:
Hiring employees with skill-sets that are different than your own will benefit your business in the long run. Don’t wait until you are drowning to hire an essential employee. Additionally, statistics show that diversity within companies can lead to better operations. Having a gender-diverse employee base leads to 15% better performance. Having an ethnically-diverse company leads to 35% better performance.
Financial Planning:
How much money do you have? How much money do you need? When first launching your business, there may be some cash flow struggles. With orders coming in and working capital tied up in accounts receivable, you may be faced with insufficient funds for supplies or labor. Finding the right business funding solutions for your startup is crucial. Many traditional lenders require a long time in business, bank statements, a good credit score, and a personal guarantee. Alternative lenders may be less demanding on their requirements for funding, but the interest rates attached to online loans are notoriously high.
Invoice Factoring for Startup Businesses:
Invoice factoring services are great for startup businesses. When you need money for your business to fulfill orders, cover overhead, or pay your employees, waiting for aging receivables to be collected can cost you time, money, and trust. Eagle Business Credit is an invoice factoring company that works with startup companies to provide reliable business funding without hidden fees or interest rates. See how your startup business can benefit from accounts receivable funding.