If you’re launching a startup, you’ve probably come across plenty of articles mentioning the fact that between 80 and 90 percent of new businesses fail. It’s hard to ignore statistics, but it’s not all doom and gloom. There are plenty of startups that are successful, and some of the world’s most famous people started right where you are, so what’s to stop you being a part of this exclusive club? If you’re preparing to set sail with a new venture, here are some tips to help you dodge those deadly icebergs.
Preventing cash flow problems
A lack of funds is a common obstacle for new businesses. Before you even think about launching a startup, make sure you can afford to get it off the ground. Once you’re up and running, you’ll need to ensure that you have money available to keep the company afloat, and hopefully, try and grow the business if the signs are positive. Keep a close eye on the books from day one. If you’ve got payments coming in and going out, but you’re not paying close attention to your accounts, it’s much more likely that you’ll encounter issues. If you’re not au fait with accounting, use a software program or hire an individual or a firm to handle your finances for you.
Keeping your business safe
In this day and age, there are multiple threats to bear in mind. While it’s incredibly important to protect your physical assets, cybercrime is perhaps the most potent threat out there. You need to make sure the networks and systems you use are safe and secure to protect sensitive data and minimize the risk of cyber attacks. If you don’t already have systems in place, it’s worth taking a look at websites like www.tierpoint.com/security-compliance/ and finding out more about services and features that are available to manage security threats. Investing in security will save you money and give you peace of mind, but it will also make it easier for clients and customers to trust your brand.
Research suggests that business graduates view technological advances as a bigger threat to new businesses than Brexit, global warming and political unrest. According to this report https://www.forbes.com/sites/nickmorrison/2017/02/09/donald-trump-is-not-the-biggest-threat-to-global-business/#50d760321b73, graduates are worried that trying to keep up with advances could make it almost impossible for small-scale businesses to compete. Technology can be incredibly beneficial for modern businesses, but think carefully before you invest in every new gadget or software program going. Use technology that will help you improve efficiency and cut costs and make sure you can afford the investment. Not every business relies on cutting-edge technology, and you shouldn’t feel pressured to spend money just because other companies are.
There’s no doubt that the waters can be choppy for new businesses. Setting up a company won’t be plain sailing, but it is possible to stay afloat and reach the shore if you know where to look for icebergs and how to avoid them. Plan ahead, keep an eye on your finances at all times, protect your business, and be wary of where you invest your money.