Starting your own business is an exciting endeavour that offers both personal and professional fulfilment. Before you start though, save yourself time and money by making yourself aware of the basics for survival.
Be willing to take risks
If you’re going to be successful as an entrepreneur, you have to be prepared for the risks and challenges that come with starting a business; risk-taking and entrepreneurship are synonymous.
Don’t be afraid to fail
Failure is one of the ingredients to success. Changing your attitude towards failure and starting to see it as part of the journey to success is crucial…this is especially true if the fear of failure is what is preventing you from starting your own business.
Work hard and persevere
Starting a small business is hard work – seriously hard work. Be prepared for a lifestyle change and long hours. Dedication, determination and perseverance are key to making your small business a success. The only place where success comes before work is in the dictionary!
Make sure there is a market
When weighing up ideas, no matter how much you want something to work, it’s important to remember that if there’s no market for what you’re selling there’s no business.
Team work is the key to growth
Team is the multiplication factor in growing a business. It is wise to focus on your strengths and partner and employ for your weakness areas in order to achieve maximum effectiveness. Concentrate on nurturing a strong team. If you build your team, your team will build your business.
Keep your eye on the money, but not only the revenue
Many new businesses make the mistake of focusing only on their revenue but seasoned entrepreneurs know that it’s the cash flow is the key. Focus on managing your cash flow well and your business will survive and grow.
Insurance is essential
Business insurance is key to business survival and is often overlooked at the onset of business ventures. Many start-ups are so concerned about making it off the ground and end up feeling that business insurance is an expense they just can’t afford; a luxury only more established businesses use. Companies like Dial Direct offer affordable insurance packages for start-ups and believe that business insurance is exactly that – something which ensures your businesses future. For a quote visit: https://www.dialdirect.co.za/quote/
Financial and legal compliance is essential to be able to do business. Most customers will ask you to present a tax clearance certificate and BEE certificate before they will do business with you, and if you are wanting to access finance lenders will expect you to produce up to date financial statements. Be diligent, stay compliant.
Financial management is paramount
Maintaining good records is the only way to stay on top of cash flow. You need to track your income and expenses effectively, in other words, you have to do the admin!
In this day and age it makes sense use an online system to capture your financial records; it makes it very easy to see how your business is doing at anytime from anywhere.
A product like SMEasy, the easy-to-use, online business management and accounting system is ideal; you don’t need any accounting knowledge to use it https://www.smeasy.co.za/accountingsystem! SMEasy will help you keep track of your finances from the get go, remember, sales will bring in the business but only good financial management will keep you in business.
In South Africa, more than 80% of start-ups fail in their first year and of those who survive only half are still in business by year three – for a country that is relying on the small business sector to grow the economy this high failure rate is concerning and the key causes need to be addressed. Poor financial management is a primary cause of small business failure and it is also the key constraint to accessing finance.
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