Starting a new business is a daunting task that many fail to achieve successfully. We’ve seen many a case where entrepreneurs lose everything on an idea and a dream. This not only impacts the individuals, but their families and employees. How can you avoid this from happening to you? We’ve put together a short list that illustrates key concepts to employ that will avoid unnecessary financial distress.
- Think small, be the acorn. Don’t try to be the Oak Tree right away.
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- Can your concept work from your kitchen table/shed or home? Don’t invest in real estate until you get traction.
2. How much can you afford to lose in the first year?
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- If you can’t start making money or have the prospect of making an income in your first year then then you need to self-finance. Do not put your family at risk by mortgaging the house or taking on huge expensive credit card debt
3. Leverage Technology early and often.
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- Technology has the effect of cutting costs by making business processes’ easier, creating less demand for human interaction and labor expenditure.
- Use technology for marketing and promotion, become an expert in google ads, Facebook and Instagram, all useful and cost effective self-help tools to promote your business.
4. Always know your numbers.
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- Know your Overhead, Costs per product, expenses and cashflow. Work with an accountant to ensure you are tracking everything and can make informed decisions in a timely manner.
5. Protect yourself.
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- Secure Business Insurance, Trade Licenses and VAT Registrations, ensure you have spoken to a Solicitor and received a legal opinion on your liability. Paying for advice early on can save thousands more when an issue arises. Many start-ups forget the downside of potential problems and never think it can happen to them.
There you have it. A simple list to get you started and keep your head above water when you first start out.
Regards,
Rick
bbtfinancial.ca 