Connect with us

Of All The Risks, The Financial Risks Are The Worst

Business

Of All The Risks, The Financial Risks Are The Worst

Starting a new business comes with a plethora of risks. Of course, it does and if anyone tells you otherwise then you need to stop listening right away and brand him or her a liar. You may think that is a little over the top and extreme but we stand by what we said, and there are plenty of statistics about businesses failing in their first three years that support us. To put it bluntly, more businesses fail than succeed, which should say all there is about the risks.

Of all the risks out there, though, the biggest of them all is financial. That’s right, your finances are at risk. Sorry. But before you start despairing and ripping up your early plans and giving up on your hopes of going solo, there are some things you can do to improve the odds, and that is exactly what we are going to help you with.

Plan, Plan, And Plan Some More

A detailed business plan is going to become your best buddy in the whole wide world, and the more detail you plonk in it the better friends you will become. We’re talking about how much you will need financially, what your major expenses will be, what your tiny expenses will be, what permits you need, how much time will need investing, where the gaps in the market are, what the competition is doing and how long you can keep going should revenue screech to a halt. All of these will help keep you out the poorhouse.

Quality Comes First. Period.

Before you try and grow too big too fast you need to make sure your products and services are awesome as they possibly can be, and that means getting your early customers to review them. Call it a beta test if you will. Another thing you can do is consult with your suppliers and see what professional advice they can give. The more perfect you make your product or service early on the better chance you have of succeeding right off the bat.

Don’t Spend If You Don’t Have To

It can be way too easy to get carried away with what you need, but you really need to try and keep your head and save where possible. If you can operate from home to start with – or go into a shared space – instead of leasing your own office then do. If you can rent a PDQ machine and avoid that upfront cost then try and explore this option. If you can outsource some of your needs, tasks or departments instead of having to cover high salaries then do so because you will save a ton of cash. It is all about knowing what your options and needs are and making the most informed decision possible.

Lose The Loans

The fewer loans you can accumulate the better. Yes, you need enough cash to operate, but the easier your debts are to manage the more comfortable you will find running your business. Of course, how much you need to borrow depends on your individual circumstances. We’re going to point back to the whole business plan part again. Look and this and decide. If you can fund your business without a loan then do because it will reduce your financial risk. If you need to get a loan then make sure it is as minimal as possible.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

More in Business

To Top
Read previous post:
Creating the perfect working environment for your small business

Having a small business can be incredibly gratifying. Handling a workforce and having total control over your day-to-day activities allows...

Close