The Donald Trumps of the world might start big, but generally speaking, individuals launching businesses start small. Keep your overheads down. Lack of cash flow is probably the biggest cause of failure in small businesses, and it’s a lot easier to expand than it is to cut back.
If you’re not careful, renting an office space, hiring your first employees, buying the requisite technology and all the other start-up costs can be enough to bring a fledgling business to a screeching halt.
As the business progresses, it tends to accumulate costly baggage. You will do well to review your chequebook and cut unnecessary expenses. Maximise your chances of profitability by taking a minimalist approach to overhead costs.
5 Carefully guard the keys to the courthouse
We live in an incredibly litigious time. Conflicts can easily result in litigation, which consumes a tremendous amount of time, energy and money.
When you enter a partnership, you are giving that partner a lot of power that they could, through litigation or not, wield against you if things go awry, and the effects can be devastating.
You need to be very careful when it comes to selecting partners. It’s important that their goals support your goals. Also, carefully assess their integrity. Otherwise, if they see an opportunity to maximise their profits at your expense, they may well do that.
Fair-weather partners are easy to find. However, you need to assess what a partner will be like when the going gets rough.
These days, control seems to have quite a negative connotation. The truth is, many aspects of control are positive and important attributes. Maintaining proper control means staying true to your vision and honouring your instincts on what is right for your business – after all, you understand your business better than anyone.
No one ever said having a small business would be easy. These six points are essential to having a prosperous business while avoiding unnecessary challenges. These points are not just cold, hard facts; there is an artistry to their implementation.
To be successful in business means to practise and develop that artistry over time. It starts with thoughtful reflection and research, then find the courage to wisely and artfully take that first step and every step thereafter, day after day, month after month, year after year.
TAKE THE LEAP
Starting your own business is often the most difficult part of the whole journey