- June 4, 2019
- Posted by: Asheesh Sinha
- Category: Business plans
There is no question that the startup phase of your new business is an exciting time for you. You and your associates had the “light bulb moment” for a new venture, and now you are watching this new venture come to fruition. Of course, it can be sobering to realize that a significant chunk of businesses will fail during the first two years. How do you guard against that? One way would be to establish methods to save as much money as possible while you are establishing this new business. Consider some of these strategies.
Don’t Try to Take on Too Much at Once
One key to making money would be to start out small and slow. This generally means that you will tackle surface level tasks and neglect some of the main building blocks of a business. For example, it is valueless if you spend most of your time designing a marketing plan without establishing policies for how you are going to manage cash flow and profits. When managing a new startup, you should always prioritize.
Regularly Audit Your Quality Control
When you are starting a new business, one of the first things you should do would be to establish some type of quality control system. Basically, quality control stipulates that you are creating a business system that is consistent, profitable, and predictable. About the only way, you can do would be through establishing an employee feedback system and instituting a plan for continuous improvement. Kaizen is a Japanese word which means “change for the better,” and it is this kind of principle that you should desire to have from the get-go in your business.
Reinvest Your Profits
If you are interested in your business staying and not advancing, then there is no reason for you to reinvest your profits. However, the best way to encourage business is with this practice because it can get you more marketing and advertising, give you the ability to hire better employees, getting an improvement in capital upgrade or simply just building up a cash reserve to fall back on during lean times.
Don’t Be Afraid to Ask for Discounts
If you’re dealing with vendors, then you probably know they can get expensive in a hurry. However, you might be surprised at how willing they are to offer you a discount if you are a regular customer. You won’t know until you ask.
Keeping these strategies in mind will not only help you grow your business, but it will also eventually make your startup more appealing to investors who can take your business to the next level!