The number one goal in business is to achieve success and profitability. While we each may articulate how we plan to get there differently, it’s the primary goal of all entrepreneurs. Therefore, ensuring that your idea, skills, or service offering is transformed into a money-making enterprise, should be your top priority.
Here’s are a few areas that can make or break a business.
The harsh reality is that, in most cases, you’ll need to spend money to make money.
Whether it’s for branding and marketing efforts, website hosting, retail space, or initial inventory, there is a cost to doing business. Funding can be difficult when your business is still in its infant stage – especially as traditional business bank loans aren’t usually available (or approved) for new entrepreneurs. Be prepared for the challenges that you may face when seeking capital. You may have to lean on your personal savings, retirement funds, lines of credit, a silent investor, or alternative lending (visit gudcapital.com to learn more about alternative borrowing options).
Be slow to hire and quick to fire!
There’s a reason that quote holds so much meaning. Bringing on employees can be a hard decision to make. As an entrepreneur, we often juggle all aspects of our business with a keen eye and a killer work ethic. It can be difficult for us to justify the expense of an employee – when we can just do the work ourselves.
But if you’re ready to expand your team and your capacity, it’s important that you don’t just lean on their credentialed resume and a good interview to make your decision. When your business is in its growth stage finding candidates with the right personalities can make all the difference in the world. Think about it this way, your first few employees will know more about the inner workings of your business than anyone else. You’ll be working – literally – side-by-side with them to keep the business growing and profitable… don’t you want that person to have certain characteristics (loyalty, trustworthiness, quick to learn, generally happy and responsible)?
Did you know that no matter how great you believe your business concept to be, it’s the customers that ultimately decide whether the company sinks or swims? Most business owners focus solely on profit margins and the bottom line. But none of that matters if there are no customers. Make your customers a priority. Reward loyalty and provide better customer care than your competitors. When customers feel appreciated and valued, they talk. They return to do more business with you. And word-of-mouth is still the best and least expensive form of advertising.
When things are going well, we’re quick to celebrate. But what about when sales are low, foot traffic is light, or there’s a hiccup with a vendor? Many businesses fail due to an inability to deal with setbacks or the unexpected.
Unfortunately, in business, you will inevitably face issues. Contingency plans, such as financial reserves, backup suppliers and vendors, strong banking relationships, an account with a temp agency that understands your employee profile, and the proper insurance coverage, can save you from unforeseen problems that would otherwise cripple your business.
Tip: visit commercialinsurance.co to evaluate and compare insurance options.