Starting a new business is an exciting yet stressful time for any entrepreneur. No doubt, you have done countless research online, and you feel prepared for all of the highs and the challenges that are bound to happen along the way. Getting a strong start is of paramount importance, and below we reveal some top tips to ensure you get off to a flyer.
Measure and Test Everything
You cannot tell if a strategy or a program is working if you are not tracking and measuring the results, and testing every element of it. And so, you can’t change what you don’t measure! The only way to improve your business and move forward is to have a thorough understanding of how your processes are working at present.
Add Value, Instead of Adding a Discount
It can be tempting to entice people by offering a discount. However, if you do this, you are only taking money directly out of your own pocket. It is better to generate added value propositions all the way up and down your service or product line. Increase your margins with any type of freemium offerings or no-cost or low-cost extras and look to hold your price points. This will build up a tremendous amount of word-of-mouth and goodwill with your customer base without costing a lot of money.
Always Underestimate Revenues and Overestimate Expenses
When you estimate expenses, you should double it to get a more realistic figure. Most startups will experience expenses that are at least 30 per cent more than they had initially anticipated or planned. And, unfortunately, revenue tends to be a lot less. The best thing to do is be conservative with your numbers; underestimate revenue and overestimate expenses. This does not mean that you are accepting these numbers, but it will ensure you don’t get any nasty surprises.
Continuously Look for Ways to Reduce Your Costs
You need to bring in more cash than you pay out; cash flow is worthless if it is not positive cash flow. This means that you need to keep expenses and costs low. From furnishing your office with used items to paying vendors upfront in order to lock in discounts, there are many different ways you can reduce your expenses.
Get Outside Help
You can’t do everything on your own, and you can’t be an expert in all areas of running your business. Michelle Dipp invests in science businesses, and there are many other professionals like this that are operating in different realms of business, so it is worth looking into your options in this regard to take your business to the next level.
Don’t Offer What You Want to Sell
Lastly, one of the biggest mistakes new business owners make is offering what they want to sell, instead of offering what people want to buy. Don’t build a service or product around what you think is going to be successful; make sure it is proven on the market.