When you’re starting out in a new business, making ends meet can be a challenge. While it is not uncommon for new businesses to take a while to start making profits, planning ahead will increase your chances of getting there sooner. Read below for our tips that will help you get set up the right way, first time.
When you’re making a smaller volume of sales, it can be tempting to manually do invoices or receipts until you beef up your revenue. However, using software from the beginning will allow you to easily see if you’re on track. Programs like MYOB or Quickbooks will enable you to monitor sales, stock, outgoings and employee data. This assists you with your bookkeeping requirements like annual activity statements, and also enables you to identify trends in your sales that can leveraged in the future. Come tax time, it should be a more straightforward process, which is a bonus for any business owner.
The same goes for client profiles or any other data that is relevant to your business. Depending on your industry, there are oodles of custom software that will help you manage client details that extend beyond their most recent purchases. Down the track when you’re increasing your marketing spend, customer insight can provide valuable data as to where you should concentrate your publicity efforts. It’s essential that it’s transferred to your online system, a bunch of handwritten client forms are of limited use and easily misplaced!
Another option for the new kid on the block is to leverage networks or create new ones. Not only does this enable you to become more integrated in your local or online community, but the opportunity to collaborate in cross-promotions or even skills swaps can materialise. In cases of contra deals, be sure to flesh out some specifics so you get the help you need without ‘paying’ too much in free services or goods. You might consider hosting some industry events to meet your competition/peers.
Being in the loop will also keep you on top of industry news, whether it be risks or opportunities to be aware of. Who knows, you may find a like-minded company to go halvies on a warehouse for sale, which dramatically reduces the cost of your real estate outlay.
Your initial business plan
Even the most organised of people will find the first few months or even years of business ownership a challenge. Too quiet and cash flow issues may creep up, too busy may mean you struggle to meet demand. However while this early time goes, ensure you schedule out a time to revisit your initial business plan. Here you can revise initial goals and budgets and consider whether they’re still relevant. If you need to refinance or look at different ways to structure your cash flow, it begins with your initial set up. Once you determine where you’re at, it’s time to make new goals for the future or adjustments to get you back on track.