It all might sound a bit unfortunate, but many businesses, regardless of niche, do not survive the first 12 months, and substantially fewer are still in existence in 5 years. This is mostly not due to a lack of talent or determination, but instead because of critical failings in other areas.
There are plenty of plumbers who are brilliant at what they do but go out of business because they know nothing about marketing. Many eCommerce businesses are wholly unaware of the significant role that cash flow and budgeting play in running a business. Many companies don’t understand that not getting your tools and materials is a recipe for disaster. So, with those examples in mind, here are some things you need to consider if you still want your business to be around this time next year.
Learn to Market Your Business
You might not know too much about marketing, but you’ll need to get some things right if you want the steady flow of customers your business will need to survive. First on this list is to get involved with social media. These posts could show you demonstrating one of your skills (something like fitting a shelf in an awkward corner if you are a contractor, or an excel hack if that is more your forte). Alternatively, they could show jobs you have previously done, so people can see what you are capable of. All this costs nothing, and by piggybacking on trends, you could start the ball rolling.
Don’t Scrimp on Tools or Materials
Money is always tight when you start a new business (more on that next), but the one area you can’t cut corners in is tooling. Whether it is a small job you need to get right, or it is in major construction where you source your Rail Cutting Tools from OSL Group, you need the best products for the job.
There is the initial benefit of doing a better job for the customer and vastly increasing your chances of getting a good review or recommendation, as well as getting a reputation for using the best tools and materials. In the medium to longer term, quality tools, like the ones discussed above, almost always have a longer lifespan than their cheaper equivalents, so you are only paying one rather than repeatedly.
Pay Attention to Cash Flow
This type of judgment call is essential when thinking about cash flow. Whether you are investing cash in the right tooling, or bulk buying stock to get it a better price overall, you need to look at the pros and cons of having a lot of your cash tied up for a long time. Your business will have overheads and operational expenses that need to be met every month, so spending that cash in other areas can often be the misstep that sends many new businesses careering off in the wrong direction in terms of cash flow.
