If you are considering starting a small business, you have likely weighed the advantages against the risks. However, if you are a first-time business owner, you might not know all the nuances involved with a venture like this. Below is a list of some tips to help you get your business off the ground:
Talk To A Small Business Accountant
There are legal ramifications (Including penalties that can kill your cash flow) if you do not make sure every step you take is in line with the law. Find a small business accountant in your area and set up a meeting before you open your startup. These professionals can help make sure all your legal boxes are checked in regards to the laws surrounding your business structure and industry. Your state could have laws that you have never heard of, and they will not hesitate to slap you with fines from day 1.
Keep Your Day Job
If you are launching a startup business, chances are you have an income of some kind that helped you build up enough capital to fund your business. As eager as you might be to quit your job, do not move too fast. Regardless of how good you think your idea is, you still need consistent cash flow. Consider sticking with your regular job for at least a few months until you have enough cash flow so that your business is sustainable. Above all, you certainly want to avoid leaving your job and then not even getting your startup off the ground. As much as you want to believe in your business plan, it is important to know that many small businesses fail due to a variety of reasons, with one being cash flow.
Do Not Keep Dead Weight
It might seem strange to already be talking about letting employees go, but any hindrance to your cash flow can be the difference between a successful venture and a total disaster. Whether it is someone who is consistently rude to potential clients on the phone, someone who is always on a device during work hours, or someone who simply is not a motivated worker, you cannot be afraid to get rid of the members of your team. Ask yourself this: “Would we be more productive without _______?” If the answer is a definite yes, go ahead and get rid of them, before they do further damage. If you are afraid of hurting a few people’s feelings, your business will not last. Remember, people’s feelings and egos will heal with time, but you likely have one shot at a successful business.
Simplify Now, Diversify Later
Some of the simplest ideas have turned into some of the most successful businesses. Take a look at your business model and ask yourself: “What problem can we help solve?” It does not matter what industry you are in, you can likely at least provide one answer. If you are a contracting company, what is the most common thing that needs fixed/built in your area? Call your friends and family in the area and survey them. Get on social media and poll the people living around you. Once you see a trending need, focus on that need and market yourself to the community. Once you build a reputation for that one specific service or product and create cash flow, then you can test the waters with other services.
Do Not Wait For Your Money
Many customers you run across are going to try to delay payment for as long as possible. 82% of small companies have gone under due to their lack of cash flow. An invoice factoring USA company can help you. Google “Invoice factoring USA“. The results of a simple “Invoice factoring USA” search will likely yield many results. You might wonder “What is invoice factoring?” If you have accounts receivable due in the next 90 days, they will pay you what you are owed, charge you a small fee, and collect the money themselves. When you look up “Invoice factoring USA”, consider Eagle Business Credit, a highly recommended invoice factoring services company.