Technology makes it so easy to start a business, but many businesses fail all too soon. There are things you can do to set yourself up for success. Do the following five things, and you'll be on the right track to creating a lasting business:
- Manage Your Accounting
Work with an accountant to establish a system for dividing up the money that comes in to your business. You can't reinvest it all back into the business, but you can't take it all as pay, either. You need to set aside money for taxes and business insurance. There should be retained earnings so you can invest in more supplies or buy out a competitor someday down the road. And, of course, you should pay yourself.
- Focus on Business, But Don’t Neglect Yourself
You have a life outside of your business. Hobbies, family, friends. These all deserve your time and attention, even when you're in the midst of building a business.
Set a schedule that you will follow, and set up parameters that make you stick to it. Tell your spouse that you'll be home for dinner at six every evening. Make a standing workout date with your best friend every weekend. Focus on your work 100% during work hours. Relax and refresh your mind the rest of the time.
- Get Appropriate Insurance
A cafe owner and an accounting practice owner will have very different business insurance needs. You may even be legally required to carry certain types of business insurance. An insurance professional can help you find a policy that's right for you. At minimum, you’ll probably need property, liability, business interruption and workers’ compensation coverage.
4. Don’t Try Doing Too Much
Does your "to-do" list look like this:
- Design a logo.
- Build a website.
- Start a podcast.
- Create a social media strategy.
- Network online.
- Rework price list.
- Start a referral program.
If so, you need to choose one thing and do it. Then another, and another. Not only will you go crazy, the quality of your work will suffer. Don’t be a hero. Understand that these things will take time, and they will likely take more than one working day.
5. Don’t Think You Can Do It All By Yourself
Starting out, you might be able to be a one-person business, but that can't last. Either you'll end up burnt out and sick from the stress, or you'll hire help. You don't have to bring on a full-time employee. A virtual assistant to handle your website and emails or part-time in-office person would help. The sooner you realize you need help, and get it, the better it will be.
Do yourself a favor, and know the mistakes that people make. Then take from what they learned so that you don't suffer the consequences.
Also Read:Common Mistakes When Buying Business Insurance