Going into business for the first time can be very exciting. However, as there are so many startups springing up, you will need to stay ahead of the game, making sure you give your new business a chance to succeed.
Entrepreneurs such as Timothy Sykes have made a lot of money out of their business, but this isn’t the case for everyone. It’s thought that 80% of businesses fail within the first 18 months of trading, meaning you’re only 20% likely to succeed.
So how can you succeed in the world of business? Here’s how:
Stay On Top Of Your Finances
Most startups fail because they simply do not stay on top of their finances. You need to know where every single cent is coming from, and where it’s going. Set out a budget, and stick to it no matter what.
If it looks like you’re running out of money, cut your costs, and do the math again. Don’t make the mistake of assuming that you’ll make a profit anytime soon. Keep your costs low, and don’t make any quick monetary decisions without checking your budget first.
If you need a license to trade, get a license. It doesn’t matter how much business you do, or how many clients you have, if you need a license, get one.
If you decide to wait a while before you apply for a license, you could be breaking the law. If discovered, you could be fined. Apply for that license no matter how much it costs, and stay on the right side of the law.
Market The Benefits Of Your Products
Every time someone buys a product, they are thinking about how it will benefit them. For example, if you sell a candy bar that has 50% extra free, the buyer will automatically think about the 50% they are getting for free.
The buyer isn’t thinking about how good your candy bar is, or how it’s a better quality than every other candy bar out there, they’re thinking about what they get for free.
Market the benefits of your products, rather than the features (the shiny new wrapper, for example), as you’re more likely to sell it.
Limit Your Expenses
Limit all of your expenses while your business is still in its early stages. Rent a small office outside of the city, rather than a huge one right in the middle. Offer your team free hot drinks and a few snacks every day, rather than 3 large meals and all the snacks they want.
Keeping your expenses as low as possible will heighten your chances of success. Too many startups have a lot of expenses that end up draining all of their money. Be sensible, and turn your basement into an office if it saves money on rent.
Use the above tips to help you save money, market your products correctly, and stay on the right side of the law. Your startup is more likely to succeed if you consider these tips, so make a note of them, and put them into action today.