When you are starting out with a new business, the last thing you want to hear is that 20% of business fail in their first year. Unfortunately, this is a fact that we all need to deal with and try to combat in order to make our businesses survive. The good news is that it is possible to run a successful business without falling into the 20%, even in a big city like London.
In this article, we are going to give you some of our top tips to help your business make it to year two. Keep reading if you want to ensure your own success.
Set A Budget
One of the best tips that we could give new business owners that want to make it to year two is to set a budget. It can be tempting to throw all of your funds into the business at first, but this can be a mistake as it is not something that you can maintain. Setting a budget for your business at the start is key to managing your finances properly. Once you have your budget in place, make sure that everyone who has the power to spend money knows how much they are allowed to spend.
Get An Investor
Another reason why many businesses fail in the first year is due to owners not wanting to ask for help. If your business is struggling, then asking for help before it is too late is the best thing to do. You don’t need to ask your friends and family for loans to get your business off the ground, there are plenty of alternatives. One investor who is really changing things for tech start-ups in the UK is Tej Kohli so this is something to consider. If you can find an investor, you can get financial support and advice at the same time.
Analyse Everything
Our next tip for those who want to make sure that their business survives the first year is to make sure that you are analysing everything. When you are constantly making decisions for your business, it can be hard to figure out if they are right if you are not taking time to look carefully at this. You need to analyse your performance, your staff and your target market. Careful analysis can go a long way so this is something you should do as often as possible.
Networking
Finally, if you want to make sure that your business survives its first year you need to make sure that you are networking as much as possible. Many entrepreneurs who are new to an industry don’t realise how important networking is and this can be a big mistake. You need to make a name for yourself as soon as possible and in a cluttered industry, this can be quite tricky. If you have never been to a networking event before, make sure to take a look online at some that are happening in your local area. This way, you can get started early and build some valuable contacts along the way.
Use our Tips
If you have recently started your own business or you are thinking about starting one in 2020 then you should make sure to take all of our tips on board. Think about how you can set a budget from the start and try to only spend what you need to. While taking risks is important in business, preparing your finances for the future can also be beneficial. Make sure to use our tips and make sure that your business gets through to the second year!