business survival: sustaining success

BUSINESS OPPORTUNITIES 2FIRST YEAR BUSINESS SURVIVALSUSTAINING BUSINESS SUCCESS

SURVIVING YOUR FIRST YEAR OF BUSINESS

Create a business plan When you’re not looking for an investor or bank loan, it’s tempting to

skip a business plan altogether. However, the process of writing out your plans is a great way to hone your vision: what problem are you trying to solve? Whose lives are you trying to improve? What’s your realistic timeframe for launch, sales, and profitability? You don’t need a 100-page document, but your plan should be detailed enough to determine if you have a good target market and business model.

NOTE: THIS INCLUDES TALKING TO CUSTOMERS AND CHOOSING YOUR LOCATION CAREFULLY


Keep your expenses low Look for every possible way to save. This will allow you to keep going

longer, hopefully until revenue starts to cover your nut. Hire interns, trade services, postpone purchases, or pick up a broom and do it yourself. Do it all yourself, for as long as needed.


Reinvest back in the company When going from a salaried job to entrepreneurship, it’s hard to give

up the stability of a paycheck. But the first money you make should be reinvested back into the company, your product, and marketing. Many times, owners are the last ones to be paid during the first year.


Don’t mistake hyperactivity for productivity In today’s culture, we are busy all the time. But how much of this

busyness is actually moving the company forward? During the first year, you need to be very selective in how you spend your time and resources. Too many entrepreneurs burn the candles at both ends, yet only move sideways and not forward.

Don’t say yes to every request that comes your way. When considering each customer request, event, marketing, or partnership opportunity, think about how it fits into your overall game plan and priorities.


Focus on the customer Your goal isn’t to create an awesome product or business; it’s to help

your customer. Be very attuned to their needs and adapt everything based on their feedback. When you build something that people actually need and want, sales will follow.


Build your network Generally speaking, the more people you know, the better. Anyone

could be a potential partner, customer, source of inspiration, or sounding board. Reach out to professionals in your field or others who have started their own businesses. The more people you reach out to, the more opportunities will come your way and the more supporters you’ll have when you need them.

Be respectful of people’s time, but also fearless in reaching out for meetings. When you meet, ask questions, give others opportunities to talk about themselves, always pick up the tab, and send a follow-up thank you. Most important, remember the golden rule in networking: The more you give, the more people want to give back.


Measure and adapt In the early days, resources are particularly tight, so it’s critical to

make sure your money and time are being spent in the right places. Never assume you know what’s going on in your business; back everything up with numbers.

It’s easy to get overwhelmed in analytics and charts, but you should have 2-4 key metrics for your business that you keep track of at all times. For example, where is your website or foot traffic coming from? What’s your gross profit percentage per product or project?


Make a longer runway It’s common for new entrepreneurs to give themselves a test year to

see what happens. Then, if they’re not profitable after that year, they decide to close shop. The problem is that many businesses need more than a year to reach profitability. One of the best ways to last beyond the year mark is to recognize and plan for the fact that it may realistically take 18-24 months for your business to get off the ground.

Launching a business is a risky, stress-inducing endeavor. But more small businesses actually succeed than fail in their first year. If you are ready, don’t be afraid to take the plunge, but be conservative in your spending, plan, measure, adapt, then adapt some more.


Plan for problems The only thing as sure as death and taxes is that unexpected issues

will crop up with your baby business. Sit down and think about everything that could go wrong -- then, make a plan for how you will survive each possible scenario.


Analyze how it's going Even though it's hard to find time in those crazy startup days, it's

important to stop and look at your numbers to see where your business is headed. Is that where you want to go? If not, change course. Most successful startups went through multiple iterations before they found their groove.

SOURCES: (Surviving Your First Year As A Small Business Owner By: Nellie Akalp)http://www.forbes.com/sites/allbusiness/2015/05/11/surviving-first-year-as-small-business-owner/#5477454e73e5

(5 Tips for Surviving Your Startup's First Year By: Carol Tice) http://www.entrepreneur.com/article/223400

http://www.forbes.com/sites/allbusiness/2015/05/11/surviving-first-year-as-small-business-owner/#5477454e73e5



NINE SIMPLE RULES FOR SUSTAINING BUSINESS SUCCESS

1. Deliver as promised. Running a business means having to make lots of promises.

Sustaining a business means keeping those promises. Make promises carefully and keep them always, even if it means a loss of margin or time. Word travels quickly when you fail to keep your promise. Your reputation is your greatest business asset. Protect it at all costs.


2. Devise a game plan and stick with it A Web development job here, an identity job there, waiting for the

phone to ring — if you’re conducting business reactively, it’s time to get proactive. A game plan starts by defining your strategic position. What is it that differentiates you from others and makes your services worthwhile? To determine a strategic position consider how you can capitalize on recent industry trends and developments, competitive opportunities and openings, changes brought about by new technologies, and most importantly your strengths and interests. Next, turn these advantages into a strong marketing message that’s clear, precise, and repeatable in your sleep.


3. Cuddle your current clients. If you haven’t heard it a million times by now, it’s worth

repeating: Your current clients are the best source of new work. Maybe your client has a project on the back burner or a project percolating for which she doesn’t realize you’re qualified. Don’t be afraid to ask what other projects are in the pipeline. I like this line: “What other design or marketing challenges are you struggling with?”

Current clients are also great for alerting you to other in-house projects in faraway departments. Don’t wait for an invitation. Ask if there might be colleagues in the company who could benefit from your services. Finally, your current clients can help you locate work outside of the company if you’re bold enough to ask for outside referrals.


4. Market incessantly. Creating a marketing plan is the easy part, making that first cold call

is the difficult part. Here’s the good news; If your marketing plan is filled with relationship-building opportunities and exercises, there is no cold calling. It’s all warm calling to potential clients whom you’ve already had the pleasure of making acquaintance with at seminars, conferences and classes, friends, colleagues, clients.


5. Mind your cash flow (in and out). According to the Small Business Administration, more businesses fail

from cash flow problems than any other reason. Make sure that money keeps coming in clearly by stating payment terms in all contracts, staggering payments through the course of the project, billing promptly, and staying on top of your accounts receivables. Never let an invoice go unpaid for more than 30 days without at least one telephone call or e-mail, 45 days without a few phone calls and e-mails, and 60 days without sending out the Light Brigade. The protocol is particularly important on jobs for which you’ve shelled out cash for vendor services. Cash flow is a two-headed monster. Purchase strategically, spend wisely, and negotiate well.


6. Value your talent. The tendency in difficult economic times, or when just starting out in

business, is to negotiate your way into a contract via concession after concession. While competitive bids are important, it does little good to slash your fees now. For one, rarely will you be able to renegotiate significantly higher fees later with this client, and secondly you may find yourself booked up with low-paying work when a sweet job rolls in. Establish your absolute minimum; take jobs for less only when they offer a clear strategic advantage, like an entry into a new industry or an opportunity to expand your skills in an area that makes sense for you and your company.


7. Subcontract for value not cost. Printers, Web developers, prepress shops — there’s always someone

somewhere who is willing to take on a subcontracting jobs at significantly reduced rates. It’s an attractive proposition; you charge your client for premium subcontract work and you pay with less-than premium dollars, pocketing the difference. But unless you’ve rounded up a rare talent, the strategy had the great potential to backfire, leaving you with less-than-superior final product, a workflow nightmare, and unforeseeable headache that will never be worth the money you save. Find a good deal? Take it as long as it’s understood that quality is never negotiable. Otherwise, subcontract for expertise or expediency.


8. Partner strategically. Many professionals enter into partnerships to reduce workload or for

camaraderie. Good reasons, but not reason enough to enter into an informal or formal strategic relationship. You want someone who is willing to work as hard as you and has a proven track record. That special someone should have business, creative or technical strengths that complement, not mimic, yours. Many a superb friendship has been ruined in partnership. If your partner ends up being a drain, you will suffer emotionally and financially and run the risk of losing clients — perhaps to your former partner. Do your due diligence on your potential partner just as you would on any investment in your future.


9. Practice the fundamentals. There’s a reason they’re called the fundamentals. It’s because they

truly are: professional work habits, excellent customer service, best face forward, win-win partnering, appropriate use of time and technology for each project, answering the phone, responding quickly to e-mails, rectifying errors with a smile. They’re fundamental and they work.

SOURCE: (The Art of Business: Nine Simple Rules for Sustaining Success by: Eric J. Adams) http://creativepro.com/the-art-of-business-nine-simple-rules-for-sustaining-success/