2017 was a great year for startup companies in virtually all sectors of the world economy and it all began by doing what is right during the first few months of the year. For entrepreneurs and those planning to launch a company this year, there are some things that you will have to prioritize such as research, planning, financing, and fulfilling legal requirements.
In order to make things easier for you, startup and business consultant Ilya Movshovich has compiled the top 5 tips you need to consider to ensure that your business gets off to a great start this year in 2018.
- Cash flow management is important to the success of your business.
Most entrepreneurs and startup companies fail for several reasons, but managing their cash flow is at perhaps the most common of them all. It is very important that you know where every penny is coming from and where every penny is going. If you don’t properly manage your cash flow, then your business will be in danger of early closure. It doesn’t matter if you have the best idea in that industry, failure to manage your cash flow will lead to the death of your business. That is why it is very important to establish a budget early on and stick to it.
- Your expenses should be limited in the beginning.
In the early days of a startup, it is very important that you keep your expenses low. This will ensure the longevity of the business. For a startup, you don’t need a very large office that will command a huge amount of rent. Operating a thin expense budget will allow you to allocate most of your capital to growth. Throughout his consulting work, Ilya Movshovich has found that some startup companies and entrepreneurs focus on the wrong things such as fancy offices and other top amenities and forget the fact that revenue generation is what matters the most.
- Customer acquisition should be of high priority.Keep this in mind, a business that doesn’t have customers isn’t a business. The moment you think of starting a business, you should start working on building your customer base. Identifying and reaching out to your customer base will increase the chances of your business succeeding. Once you have identified your customers, work on acquisition channels and ways to attract them to your business.
- Establish financial goals.
Successful entrepreneurs and startups are usually those that have a clear financial goal. Don’t just start a business with the aim of making it big, you need to break financial goals down into reachable and measurable ones. You can set financial goals monthly, weekly, fortnightly or any period after taking some things into account. Establishing financial goals will allow you to stay on track and make the adjustments necessary for constant growth. Achieving the set financial goals along the way is a proven way to give you confidence and keep you motivated to achieve even higher goals.
- Remain optimistic but have a contingency plan.
One thing we can all agree on is that nothing is for certain and anything can happen in the fast paced, ever changing business world. This is why it is important you prepare yourself for when things don’t go your way. Do not abandon your main source of income until your business has grown to the extent it can replace that income. Keep reserve funds for your business as it will help you counter any challenges that your business might face in its early days.