Friday, September 26, 2014

Basic Tips for New Small Business Owners

small business, entrepreneurs
When the Harris Poll recently surveyed more than 500 small business entrepreneurs, it learned that many of them wished they had approached business startup differently. Though these entrepreneurs did not regret becoming business owners, approximately 80 percent admitted they felt unprepared while getting their ventures off the ground. Four in every ten said they did not create a contingency plan for economic downturns and others failed to consider expenses such as health insurance and taxes. Learn from their mistakes by following the guidance below before starting a small business.

More than one-third of the entrepreneurs surveyed noted the importance of separating personal and business finances. Most used household income or other personal assets to fund their businesses. Only one in every five used a bank-offered business loan. This third-party financing can be very helpful because it separates business finances, preventing them from bleeding the household dry.

Managing cash flow is important for any business but particularly for a small one. Immediate billing and reminder notices regarding issued invoices can help. However, timely customer payment is not guaranteed, so it is wise to have enough reserve cash to keep the business going and always operate according to a budget. Establishing a budget at the start and revising it annually helps to prevent financial surprises.

Technology is an essential part of our lives but some entrepreneurs fail to invest in it during startup. Consider technology as important as employees and spend the money required to create a strong foundation. Also, budget an ample amount for a strong marketing campaign to introduce the new business to the world. Promotion gets the business on the map and builds a customer base. Spending money on advertising and other marketing efforts when the business is new can help the company grow more quickly.

New business owners tend to feel like trailblazers, facing the world alone. They should not be afraid to ask for help by consulting experts in tax, marketing, technology, and the law. One in every five of the entrepreneurs surveyed by Harris Poll admitted lacking the required legal and tax expertise and almost 40 percent wished they ran their marketing strategies by an expert before implementing them. Expert assistance is especially valuable when money is scarce, making an accountant a good resource for a new entrepreneur.

Experts also help entrepreneurs keep their businesses running and growing. Attorneys provide legal guidance when entering new markets or expanding product lines. Financial advisors reduce the confusion involved in decisions regarding money. By asking these experts questions when they arise, entrepreneurs can avoid problems and streamline business growth. The most successful business owners admit they would not be where they are without some help.

Small business ownership is exciting but starting and running a business is not usually a smooth road. It requires money, effort, resources, and perseverance. Would-be entrepreneurs should learn best practices and pitfalls from those who have gone before them. After getting their new ventures up and running, these business owners can serve as advisors to the next generation of entrepreneurs.

Would you like more help getting your own small business or legitimate home business up and running? Stacy O'Quinn has helped dozens of entrepreneurs create their own successful business and he can help you too! For more information about Stacy and how he can help you, click here.

No comments: