Managing your business begins actually before you even start your small business, let us explore some of the issues facing the new entrepreneur.
When you analyse the numbers of business failures during the fist 12 months, you will find that about 28% to 34% of businesses close their doors again. While these numbers are horribly high it is very easy to avoid becoming part of this statistic. Let us look at how:
- Your goal – what do you want to achieve, not for the business, but for yourself? How much money is enough? Think about this and make a note of your goal.
- Your business idea – can your business idea deliver this kind of return in a reasonable time to allow you to reach your goal? You can test this by doing a break-even calculation and cash-flow forecast.
- Bootstrapping – make money, don’t spend it or even worth borrow it – being frugal in a recession is a no brainer, but being frugal as a business model is a winning business model.
These simple rules will help you to stay in business for much longer than 12 months. They will enable you to build a long term business and generate a good income for your family while still allowing you to enjoy your life.
Questions? Contact us @ WinWeb Business Advice.
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