{"id":3169,"date":"2018-10-14T16:08:51","date_gmt":"2018-10-14T13:08:51","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=3169"},"modified":"2019-02-06T11:37:52","modified_gmt":"2019-02-06T09:37:52","slug":"6-tips-for-surviving-in-business-as-a-new-business-owner","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/6-tips-for-surviving-in-business-as-a-new-business-owner\/","title":{"rendered":"6 Tips for Surviving in Business as a New Business Owner"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Congratulations! You\u2019ve decided to venture out of your comfort zone and start your own business. You\u2019re now a part of around <\/span><a href=\"https:\/\/www.politifact.com\/truth-o-meter\/statements\/2015\/apr\/13\/rick-santorum\/90-american-workers-dont-own-their-own-business-ri\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">10% of people<\/span><\/a><span style=\"font-weight: 400;\"> in the US labor force who own their very own business, but just because you\u2019ve opened the doors doesn\u2019t mean that they\u2019ll still be open a few years down the line. Now the battle really begins and you must learn how to survive (better yet, thrive) as a new business owner.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">How to start a successful business<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Surviving in business isn\u2019t as hard as you think. According to the U.S. Bureau of Labor, the odds are actually in your favor. As much as 75% of new businesses survive the first year. It\u2019s only when you get to the five-year mark that things tend to go sour, with business owners given a 50\/50 chance of remaining open. And if you don\u2019t leave it up to chance, your business can be on the right side of the coin toss.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What can you do to make sure your business not only survives in its early days but is on the path to success?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Finances play a huge part in business success, of course, so here are our top tips on how to survive in business and avoid common early financial mistakes.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">1. Learn to keep business expenses low<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Did you know that around 70% of lottery winners end up bankrupt (according to the National Endowment for Financial Education)? But what\u2019s that got to do with business? Well, when businesses receive their first <\/span><a href=\"https:\/\/www.become.co\/start-up-loan\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">startup business loan<\/span><\/a><span style=\"font-weight: 400;\">, it can be tempting to spend it all at once. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">It\u2019s time to tighten those purse strings and learn how to survive in business &#8211; and really survive. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">To make sure that your finances last, be sure to follow this golden rule: Keep expenses (especially fixed expenses) to the bare minimum. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">When you\u2019re first starting out, you could try to avoid hiring and rather outsourcing to freelancers and contractors until you start to build a good revenue &#8211; at which point it would be a good idea to hire high-quality employees.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Is office space essential? In your businesses early days (depending on the industry) it may be best to wait on it. Try working from a home office until your business is bringing in a steady income. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">2. Learn how to manage your cash flow<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Monitor every dollar that comes in and every dollar that goes out. Cash really is king, and if you want your business to survive, you need to remain cash-flow positive. This is especially crucial in the first six months of business before you\u2019re likely to be eligible for an <\/span><a href=\"https:\/\/www.become.co\/unsecured-business-loans\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">unsecured business loan<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Determine your business budget and stick to it &#8211; no exceptions. We highly recommend using an accounting software to help you budget (such as Intuit QuickBooks). Ideally, it would be best to have a long-term budget plan. Businesses that make the mistake of thinking short-term are far more likely to close. Statistically speaking, the majority of businesses that succeed in the long-term are businesses that think and plan ahead long-term. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Moreover, should you find yourself in need of funds to manage your cash flow there are plenty of options &#8211; check out <\/span><a href=\"https:\/\/www.become.co\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Become<\/span><\/a><span style=\"font-weight: 400;\"> to make sure you find the best funding for your needs.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-1046\" title=\"how to survive in business\" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands-1024x1024.jpg\" alt=\"\" width=\"504\" height=\"504\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands-1024x1024.jpg 1024w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands-150x150.jpg 150w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands-300x300.jpg 300w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands-768x768.jpg 768w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands-270x270.jpg 270w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands-45x45.jpg 45w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2017\/08\/Money-Hands.jpg 800w\" sizes=\"(max-width: 504px) 100vw, 504px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">3. Reinvest in your business<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Early-day customer payments should be reinvested into your business and any extra should be kept in reserve. When we say \u2018reinvest\u2019 we\u2019re talking about marketing, perhaps getting a good website, investing further in your product and hiring\/training.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Although it\u2019s obviously important to pay yourself to live, keep your salary as low as possible at first. You should also be prepared to <\/span><i><span style=\"font-weight: 400;\">lose <\/span><\/i><span style=\"font-weight: 400;\">money in your first year or two, you\u2019d be surprised at how normal this actually is!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first two years are hard &#8211; fact.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you enter into your third and hopefully your fourth year in business, you should have straightened out all the kinks and be starting to smell success. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">4. Establish realistic financial goals<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Take the time to set yearly, monthly, weekly, and even daily financial goals. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">When it comes to setting your revenue goals, don\u2019t simply set a generic goal such as \u2018increase sales\u2019, this is a classic example of what NOT to do when starting a business.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">You\u2019ll need to work toward <\/span><i><span style=\"font-weight: 400;\">specific <\/span><\/i><span style=\"font-weight: 400;\">revenue goals if you want to be successful. At first they should be small so that they\u2019re realistically achievable, and more importantly, should be measurable so that you can review and adjust them quarterly. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">5. Focus on customer acquisition<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">At the end of the day, it doesn\u2019t matter how awesome your product is, you need customers to buy it. Gaining customers should be your primary aim &#8211; customers mean revenue. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Be sure to focus on your customer\u2019s needs. How easy is the purchasing process? If your product is online, how simple is the ordering process? How fast and attentive is your customer support?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Especially at the beginning of your business, you\u2019ll need to listen closely to your customers and adapt, so to ensure that you\u2019re offering them the right product or service that meets their needs. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The sooner you give them what they need, the sooner you\u2019ll start making sales and earning revenue.<\/span><\/p>\n<p><img decoding=\"async\" class=\"wp-image-77 aligncenter\" title=\"What not to do when starting a business\" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2016\/10\/26488982_m.jpg\" alt=\"\" width=\"459\" height=\"469\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2016\/10\/26488982_m.jpg 685w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2016\/10\/26488982_m-294x300.jpg 294w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2016\/10\/26488982_m-265x270.jpg 265w\" sizes=\"(max-width: 459px) 100vw, 459px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">6. Time is money<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Time really is money so spend it wisely!<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Just because you\u2019re constantly busy and working your a** off, doesn\u2019t necessarily mean that you&#8217;re being productive. Any time wasted on trivialities is time that could be better-spent revenue-generating. Be selective on how you spend your time and resources, and learn to say no to non-productive activities.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a business owner at the beginning of their venture, we&#8217;re sure that you know about the 101 tasks that seem to keep building and building and there are only so many hours in the day. This is where you\u2019ll need to learn (fast) how to prioritize your time.<\/p>\n<p>We advise organizing your tasks and ordering them in terms of which are most important. When prioritizing, think \u2018which of these tasks will get me closer to my goal\u2019 and \u2018which will lead to faster revenue generation\u2019 &#8211; these are your important tasks. Rather than working on many tasks at a time, aim to work on completing a task and then moving onto the next.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bouncing back-and-forth between a few tasks may make you feel like a multitasking guru, but actually, this can slow down your productivity. Better to have a few tasks completed than many tasks half-done. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Bottom line: <\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Some of these tips may seem obvious, but now that you know how to <\/span><i><span style=\"font-weight: 400;\">start <\/span><\/i><span style=\"font-weight: 400;\">a successful business hopefully you\u2019ll be able to carry on the success. You\u2019d be surprised at how many startups fail by making simple, obvious mistakes.<\/p>\n<p>We hope you found this advice useful and wish you the very best of luck in your business venture!<\/span><\/p>\n<p>&nbsp;<\/p>\n<h6><b><i>Discl<\/i><\/b><b><i>aimer: The information contained in this article is provided for informational purposes only, should not be construed as legal advice on any subject matter and should not be relied upon as such. The author accepts no responsibility for any consequences whatsoever arising from the use of such information.<\/i><\/b><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Congratulations! You\u2019ve decided to venture out of your comfort zone and start your own business. You\u2019re now a part of around 10% of people in the US labor force who own their very own business, but just because you\u2019ve opened the doors doesn\u2019t mean that they\u2019ll still be open a few years down the line. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3174,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,114,1,12],"tags":[],"class_list":["post-3169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aus-resources","category-small-business-wisdom","category-uncategorized","category-us-resources"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>6 Tips for Surviving in Business as a New Business Owner - Business Funding Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.become.co\/blog\/6-tips-for-surviving-in-business-as-a-new-business-owner\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"6 Tips for Surviving in Business as a New Business Owner - Business Funding Blog\" \/>\n<meta property=\"og:description\" content=\"Congratulations! You\u2019ve decided to venture out of your comfort zone and start your own business. You\u2019re now a part of around 10% of people in the US labor force who own their very own business, but just because you\u2019ve opened the doors doesn\u2019t mean that they\u2019ll still be open a few years down the line. 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