While the American dream of having your own business hasn’t diminished any in the hearts and minds of many, the dream is not what it used to be. According to the most recent reports by the U.S. Bureau of Labor, a full 75 percent of new businesses get to survive their first year of operations, and 69 percent get to float on over to their second year in business. Amazingly, 50 percent actually make it to the five-year mark.
That being said, let’s go over several vital tips of advice that will help your enterprise make it from the first year and beyond.
Fight Fear With Faith
Having confidence in your business plan and strategies, having a positive support group by your side, and listening to positive people who’ve gone before you to succeed in their endeavors, all form part of an effective strategy against the fear of failing. Doubt, fear, and lack of confidence will come against you in your first year. So prepare now by surrounding yourself with only positive thinking people that will add to you and not take away your self-confidence.
Get Your Family on Board
Caring for a family can slow you down when trying to devote yourself to a new business, though some people work best under family pressure if they have a goal. If there’s a family involved, then warning them ahead of time that you’re going to be super busy during the next year may help navigate around the needs of the family to some extent. It’s said that Mark Zuckerberg of Facebook fame, would dedicate three hours a week exclusively to his girlfriend, out of the office, while he established Facebook.
As many startups typically crash in their first year due to insufficient funds, downsizing to a less costly environment makes sense. Likewise, only hiring staff that’s vitally needed, such as on a sub-contractor or freelancing basis, helps immensely. If you can make it working out of your own home, then do so. In general, only spend on something when you have to.
Funding And Reinvesting Back in the Company
Viewed as many as a baptism in fire, your first year is the one everyone, including your credit union, banker, and family, is watching. Carefully monitoring what you have and how much is left over, sets the stage for being able to reinvest funds into the business during that first year.
Investing in equipment, marketing, and catching up on unpaid bills, are the best ways to stay afloat in the first year of a startup. However, you might also prepare for being the last person to get paid.
Establish Good Relationships
Having a good working relationship with your local banking institution, or better yet, a Utah credit union in which you share part membership as well as ownership, goes a long way in setting a startup’s presence in the business community. Try your best to develop and maintain healthy relationships with clients, partners, and new employees.
No matter how bad the economy may become, the dream of having your own business remains intact. If anything, the hopes of having a stable economy once again, may rest on those who have determined to go it alone, and launch out into the world of business startups.