The startup phase of a business is brutal. It is the time when, even if success is great, if it is not great enough fast enough, the business will not survive. Money has to be made quickly enough to break even and turn a profit.
Of course, a solid business plan accounts for this and for an anticipated time frame. The key is whether or not the anticipated time frame lines up with what actually happens. The experience can be nerve-racking. Here are some survival tips to help in these early days of small business ownership.
You cannot prepare too much. Do as much research as you can and over-budget to a point in an effort to be as prepared as possible for the startup phase. Then stick to it and rely on your plan. A little padding in the budget can go a long way toward relieving stress, so will thorough research.
Create a reasonable expectation for breakeven and profit based on legitimate research. You cannot accurately judge how things are going if your expectations in the beginning are not appropriate. Dreaming big is necessary to entrepreneurship, but remaining realistic in your expectations will help you sleep at night during a most stressful phase of business ownership.
Persevere and a Plan B
Keep going, even if things do not go as planned. The best way to ensure you are able to do this is to have a contingency plan, or a plan B. This may be a business line of credit or a business credit card that can be used to bridge cash flow gaps during this phase, or it may be an option to reduce staff or inventory if it becomes necessary. Whatever the case, a plan B will help you persevere when the going gets tough, so that when you come out on the other side you can reap all the benefits that perseverance has to offer.
When you get ready to start, Biz2Credit can help you line up all the financing, from startup loans to plan B options such as a line of credit. Our extensive network of lenders offers various types of financing, and we can find the perfect options for you. Visit Biz2Credit.com today to find out more.