It’s easier than ever to set up a company and take the leap from employee to boss. However there are no guarantees, and unfortunately many businesses fail early on after making fatal errors or misjudgements. The first year is especially tough, as you don’t have the funds behind you to keep ticking over if something goes wrong, so it’s important to do everything right during this time. Thankfully we can learn from the mistakes others have made, and really make sure we go about things in the right way so that our own company is a roaring success. Here are just a few pitfalls companies tend to make in their first year, and that you should work on avoiding so you can go on to run a successful company.
Don’t Let Personal Debt Be The Downfall Of Your Business
Running up debt is easily done- it doesn’t discriminate by age, ethnicity or social class and is something that anyone can find themselves in trouble with. However if you want to succeed in business it’s so important that you avoid getting yourself in this situation. This is because your company is an asset- if you find yourself in trouble with debt in your personal life it’s something creditors can force you to sell. This is true even if the money you’re behind with wasnt’ borrowed for or spent on your business, since it’s all linked to you it’s something you could lose. Don’t take the chance, you don’t want your hard work snatched away from you especially when it was something completely unrelated to your business! your personal finances should be managed as well as your businesses. If you find yourself falling behind don’t bury your head in the sand, either seek professional help or consider a measure like consolidating. Regardless of your situation there are options out there, there are even unsecured debt consolidation loans for bad credit so as a company owner there will be something for you.
Competitors Could Render You Obsolete- So Keep an Eye on Them
In your first year of business, just focusing on yourself can difficult enough. You’re learning things by trial and error, you’re finding your feet and you’re doing it all on a budget- there are many plates that you have to keep spinning. This can be tough for the first time entrepreneur! However it’s not just you that you need to be worrying about- you have to be keeping an eye on your competition too. It’s all an important part of strategic planning, you need to know what to be doing to either appeal to a different customer base or to be appealing to the customers you are both hoping to reach. You should be aware of any threats that they could pose in the present or future, and be sure you will be able to adapt to these. Otherwise you could be wiped out completely and be made obsolete- meaning game over for your business!
Technology Moves Fast- Your Business Needs to Stay Relevant and up to Date
In your first year of business especially, you need everything to be running as smoothly as possible. You need to be productive and efficient to make sure that you’re turning enough profit to keep you ticking over, until you’re out of hot water. If your business is using manual methods, these are slow, could be inaccurate and could really be jeopardising your business. Business software from accounting to legal to HR, payroll and more can all be utilised saving you both time and money. You rule out human error, and get through work much more quickly. Business software can tackle some jobs that would take a human worker a whole day in a matter of minutes. Do your research and see what’s out there, it’s a big part of your business so don’t overlook it!
Do you have any advice for bootstrapped businesses getting through their first year?