STARTING UP a business can be very tricky because of the difficulties that may be encountered. An assumption, or rather a fear, thrives in the minds of people about the risky nature of starting a business. One has to admit that it is indeed very risky, but worthwhile, if everything is done correctly. How the business is tackled during its initial stages will, more often than not, determine whether it is going to thrive or not. That is why it’s important to exercise discipline when running the business. Some of the difficulties new business owners experience are:
- Lack of money to run the business
- Too much money being spent and not enough coming in
- Diminishing influx of customers
- Legal problems
This economy has made getting loans to start a business very difficult. Instead of relying on these loans and getting depressed over the loan application rejection, save up for the money or try starting your business on nights and weekends while you still have your job. Most people who start businesses were formerly employed and that is actually the best time for accumulating the money. Another way to come up with the money is by applying for business grants. At times, they are not much but if some money was put away for the business, it will be enough to keep the business running for a while. Investors can also help start a business if they see that it has promise.
Once the new business reaches a certain size, employees are needed to help run it. When a business is new, however, it probably won’t produce enough income to pay employee salaries from its own revenue. This is why a business person will realize that the ratio of money being spent to the one being received does not make a profit. These are most common times businesses go under—they simply run out of money. One way to eradicate this is to have a budget, which will keep expenditures disciplined. Since employees are necessary, they can be informed that their start-up salary will be less and when the business picks up, their salaries will be increased. On the same token, don’t hire employees if you really don’t need them.
Getting clients and customers is not an easy thing when the business is new. There is no shortcut to this problem, although the Internet has vastly sped up the process. Make contacts and maintain them. Treating customers well at all times is paramount. When they are treated well, they will recommend your business to other people and your clientele base will grow. If products are being sold, then they can have discounts. Consumers are always attracted by discounts and when they like the products, they will likely still make a purchase whether the discount is there or not.
A business that does not meet the requirements of the law will likely suffer from lawsuits, audits, and other major issues, and even get closed down if the owner is not careful. Consult with lawyers and accountants and they will advise you on what to do. If any changes in the law are made or new laws added, they are the first people to know and, thus, will inform the business owner who will adjust to the changes.