The first few months after you set up your business are the most crucial ones in your whole time as a business owner. It is the time you will figure out what it really means to be the owner of a business, and you will know whether or not you have the financial and mental strength to run it. If you want to make sure that your first few months go smoothly, here are some of the things you will need to think about.
1. Identify Your Business Leader
If you are starting your business alone, then the leader will be you, however, if you are coming together with a group of people in order to run a business, someone is going to have to be the leader. Although it is nice to think you are all equal and have the right to make the decisions, within the business there always needs to be a clear leader if you are to succeed. If you love being in business but aren’t great on the leadership side of things, leave that to someone else to do instead. You can still be the owner without being the leader.
2. Profit doesn’t equal cash
As a new business owner, you will likely be very optimistic and believe in the magic of business from the off. However, it is important not to stray from the truth and make sure that you keep your head firmly on your shoulders. It is crucial that you project your cash flow at least six months into the future in order to understand where your company will be REALISTICALLY in six months time. A small profit is not enough to keep you in business, so remember that. You can also benefit from looking at the best small business credit card companies in order to give you a buffer in that first few months once you know that you can afford to keep up the payments. Always make sure you have a buffer to fall back on should you have a slightly less profitable month.
3. You Always Have More to Learn
When you begin in business you need to bear in mind that you are not an expert. Just because you have built something for yourself does not mean you should be giving lectures on business in colleges around the country. It is incredibly important to know that you don’t know everything and to be willing to learn new skills every single day. If you are not great at a certain aspect of the business, simply get someone in who is experienced. Business is a huge learning curve, and you need to be thick-skinned to deal with the tension it will put on your mind.
4. Choose the Right Role
You might be the owner of a company but that doesn’t mean you should be the leader. As we discussed above, you need to play on your professional experiences and skills to find your role in the business. It might mean employing someone to be the leader, someone to cover marketing and someone to cover sales whilst you handle the finance. Make sure you play to your strengths.