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You can find hundreds, if not thousands, of articles written by highly skilled and talented people who tell you exactly what it takes to get your business up and running. Although helpful, most of them offer tips for starting a business which are more or less the same. Starting a company is no easy feat and no matter how many articles you read or how many people you talk to, it’ll be a fight that you personally have to cater to.
Our top 5 tips for you
A business is like a baby: you have to support it the right way, you need resource guides and abilities to help it develop, and most importantly, you’ll need to manage your money in a way to continuously support it. Here are the five most important tips for starting a business that you should consider that’ll make or break your small business (SMB), and what it takes to succeed in each.
Understanding cash flow
Understanding the concept of cash flow is important for your small business to continue functioning. Cash flow problems are one of the biggest reasons small companies run out of business, and recognizing errors early on can prevent that from happening to your business. Cash flow is the amount of money coming in and out of a business. Without adequate cash, it becomes hard to pay wages, suppliers, and rent so it’s essential for every business owner to know how to properly manage it.
When more money is coming into your business than going out of it, you would be in the better position to pay expenses and bills as you are having “positive cash flow” at hand. It is the same with the opposite. Many starting businesses borrow money from banks or lenders to cover overdrafts. If your money is going more out than in, you can apply for loans that can assist in covering cash flow shortages and expenses.
It’s especially important to have a working capital when your business is new as the starting expenses are high and you may not have as much revenue or sales at the start. Loans aid in covering the basics as you get your SMB started on the route to a fresh new positive cash flow situation. Using modern payment solutions like Forwardly can also help because they make it easier to get paid quickly and manage finances better.
To keep track of your cash flow, you can use cash flow forecasts. Forwardly even offers 12 months of free cash flow forecasts to help you plan your finances better and make sure your business stays financially healthy. By understanding your cash flow, you can make smart decisions to help your business grow and succeed. It’s like having a roadmap to guide you toward your business goals.
Keep networking
Networking is like a treasure hunt for your business, where you can discover new investors, skilled employees, loyal customers, or wise mentors. Make it a habit to attend industry and startup events regularly. Also, consider attending conferences or seminars relevant to your industry. These gatherings are gold mines for meeting potential collaborators and expanding your network.
Utilize LinkedIn to its fullest potential by creating profiles for both yourself and your company. Keep adding new connections to widen your reach and visibility. Engage with brands that complement your products or services, as they could become valuable allies in your journey. Networking is the lifeblood of business growth, so keep nurturing those connections and watch your opportunities multiply!
Pick a great support team
Your company is only as good as the people who are in it. You most likely want your small business to be successful (otherwise you wouldn’t be reading this article), so you will need a great support team. As the leader of your business, we naturally want to be the best and “smartest”, but hiring employees with that mindset keeps your business from standing out.
It’s better to have someone who always dedicates time to continuously improve and grow with whatever they’re doing, over someone who chooses to stay within their comfort zone and area of expertise. Of course, it’s human nature to continue with what you’re comfortable with (we are all guilty of doing that), but when starting a new business or when wanting to expand your SMB, people who have the drive to go the extra mile should be favored.
Anybody can develop skills and learn new abilities if they’re committed, but you cannot forget that you’re hiring the person, not just their skills. To have a strong support team, your morals, values, and beliefs must coincide and mesh well with each other. It’s always good to consider in the point of view of outside customers; “if this business hired this person, do I really want to support the business?”. Keep in mind, you hire for the skills but you will be working with the person, so try and choose those who will help you grow your business with you.
Understand your market
Understanding your market is really important for your small business to succeed. Before creating your product or service, figure out who you’re trying to sell to and what they need. You can do this by asking people in surveys, focus groups, interviews, or just by watching them. Once you know your market, focus on marketing to them well.
Make a message that speaks to their needs and preferences. Keep developing your market by targeting specific groups within your audience. Marketing is crucial for SMBs; knowing who you’re selling to and why is key. Building a business from scratch is tough, but it’s worth it. Remember three things: manage your money, build a good team, and know your market. Forwardly is also here to help you on your journey as an entrepreneur.
Deliver outstanding customer service
In the early stages of your business, prioritizing exceptional customer service is paramount. These initial customers serve as ambassadors, driving referrals and positive recommendations. Take the time to express gratitude personally through email, demonstrating genuine appreciation for their support.
Going above and beyond their expectations not only solidifies their loyalty but also encourages them to spread the word about your business. By providing outstanding service, you not only foster strong relationships but also create a positive reputation in the market. Remember, satisfied customers are more likely to become repeat buyers and advocates for your brand.
Partner with Forwardly
Running a successful business requires patience and a lot of financial management. Forwardly can help you with your business journey. Getting paid with Forwardly only takes 22 seconds any time of the day and year. As a business owner, you need to focus on streamlining your accounts receivable and payable. Receiving instant payments only costs 1% (minimum $1 and maximum $10 per transaction). Forwardly can integrate seamlessly with your accounting software, making things easier for you and your team.
Getting started with Forwardly is easy, there’s no monthly commitment aka subscription fees. Remember, running a successful business is a marathon, not a sprint. By following these tips for starting a business and harnessing the right tools, you can position your business for long-term success.
