New Business Owners: Surviving The First Year In Entrepreneurship
Launching your own business means taking charge of your future, and not having to rely on anyone else for your success. However, new business owners are also fighting the odds. The economic landscape is highly competitive, and most new businesses fold within the first few years. For these reasons and more, we have put together a general outline to help new business owners survive their first year successfully.
Aggressively Reinvest In Your Company
New business owners sometimes have trouble transitioning from a steady paycheck to relying on the revenue generated by their companies. The initial reaction for many new business owners is to take as much revenue that isn’t used to meet overhead costs, and place that amount in the bank. While it is a great idea to build up capital in the bank, your revenue can be used to get a stronger foothold in your industry. New business owners should use at least a portion of their revenue to launch marketing campaigns, roll out new products or services, and to court larger client accounts.
Keeping expenses low is a constant struggle for businesses of all sizes. For new business owners, the cost of something as simple as office supplies can take out a larger portion of the budget than it does for larger organizations. There are other places business owners can look to cut down on overhead costs. Leasing equipment, hiring independent contractors instead of full-time employees, taking on interns to handle administrative duties, and more can greatly reduce the number of expenses. This increases the amount of capital available, which can be used to grow your business.
New business owners often wear a number of hats immediately following a launch. If there are other employees in the business, they may also be juggling multiple duties, all in a frantic drive to generate sales. However, sometimes the busywork and anxiousness does very little to move a company forward. Every month or so, take a look at the flow of work in your business. Take a hard look at what is yielding results, what is slowing down projects, and what small tasks can be automated to streamline productivity.
Financing For New Business Owners
One of the best ways to ensure success is by having adequate financing. At BG Capital Funding Group, we offer accessible and flexible working capital solutions for new and small businesses. Whether you need equipment, a line of credit, or growth capital, we will work with you to help you reach your goals. Contact us today to learn more.