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• Procrastination – business owners often think they will deal with a matter later but tend to forget about it altogether. Whether it is advice about your business or marketing plans, advice on the finance that you need or advice on promotion. However, if you start leaving invoices from your suppliers you could end up with severe cash flow problems, which may overwhelm your business.
• Customer Complacency – In business there is only customers and suppliers. You should concentrate on building up a loyal customer base and then maintain their loyalty
• Location – a key to any successful business. For example having a five star restaurant in the middle of an industrial estate wouldn’t gain you your target market meaning you wouldn’t be bringing in enough money for your start-up expenses and on going expenses.
• Insufficient funding – you need to have sufficient funding to last six months, whilst you get your business operational.
Every new business needs money when they are starting up. This money will cover start up costs that are needed in order to by necessary equipment, get your workplace established and to cover your marketing costs all before your first sale is even made. When your business is fully up and running and you are taking in trade you will also need cash to pay bills and keep your business going.
There is a range of finance options open to you ; choosing the right one is the hard part but the most essential thing you will need to do for your business. Your business plan will help you do this as it is a roadmap for future development and crucial for not only gaining finance but also for getting attention and interest in your business.
A few forms of business finance that are availably to you are:
• Bank loans
• Credit cards
• Family and friends
• Venture capitalists
• Business Angels
• Personal savings
• Home equity
As well as sorting your business finance out another important decision that any business has to undergo is choosing a name for their business. This can often be a creative and enjoyable process but you need to get it right as customers will deduce a lot from your business name; remember first impressions count. You should choose a name that reflects your business strategy and not individual personality.
Another factor that needs your attention is the question of new staff. You need to weigh up whether you need new staff; thinking as far ahead as you can. You should ask yourself if you are taking on new staff to let your business grow, to replace someone, to get more of a handle on increased work load, do you want them to have new skills and also if you have enough room and equipment to cater for new staff.
There is a lot to take on board when setting up your own, new business. Everything has to be done just right, which is why there is so much planning involved; if you get things wrong at this stage your business has the likelihood to fail. This is why you need to make sure that you not only plan well but also keep records of exactly what is going on in your business such as accounting. Your accounting needs will depend on the size, type and sector of business your venture is in. It is your responsibility to make sure your business keeps accurate records.
When your business is up and running it is essential to plan and tightly manage your financial performance and stock control. Your stock control shows have much stock you have and allows you to keep track of it. You need to have the right amount of stock in the right place.
Category: Small BusinessAdvice for new Businesses was written by:Author:Carolyn ClaytonAdded: Thu, 30 Aug 2007 07:16:29 -0400 This Article Has Been Read 253 times View all Carolyn Clayton's articlesAbout the Author: Helen is the web master of ARCH Entrepreneurs, experts within all areas of Business Finance and Business Angels. |
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