So you’ve started a small business and you’re excited and anxious to break-even and start making the cool cash. Well, according to a study done by Bloomberg, it was discovered and is a well known fact that 8 out of 10 small businesses fail at the end of the first year. That’s an astounding 80% that don’t live to see their second year. Knowing just how to stay afloat is a much necessary technique to be imbibed. To figure out that you are absolutely ready for the money to start dropping in your business account requires you to notice and understand these signs.
#Sign 1. You have Available Capital and Expertise.
You know why these startup companies fail so quickly? It’s simple. They ran out of cash. You need enough startup capital to get your business off the ground and then you need more capital to keep it running for the next year or two. The mistake many companies make is to have just enough capital for acquisition of land/rental of office space, initial capital for raw materials and supplies, and just a little bit for marketing and advertising. Do not be like those businesses. Plus don’t ever forget to have expertise and human resource in the relevant field.
#Sign 2. You have engaged in Aggressive Advertising and Marketing.
Joe Chernov once said, “Good marketing makes the company look smart. Great Marketing makes the customer feel smart.” Advertising has become so varied with the emergence of TV, radios, magazines, in flight advertising, newspapers, billboards, website and a host of many others that you simply have no excuse of not advertising your product. You are ready to make profits when you have shown your product to the world.
#Sign 3. You keep Separate Books of Records and Keep track of Expenses and Income.
Oh how I cringe when I visit a small business and find out all records are in one single book without being separated into their various books. Expenses are not tracked to know if the company is making a profit or loss, neither are there separate bank accounts for personal and business finances. Everything is one jumbled hot mess.
#Sign 4. You hire an Accountant.
If you are not a certified accountant, you have no business doing the books. It will not be worthwhile in the long run. Hire an accountant today!
Other signs include pricing your products or services appropriately, filing tax returns as at when due, engaging in inventory and human resources management, and others.
Remember to smile widely when the dough starts rolling in!