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You’ve been planning for a long time to start your own business — and now the time is here.
Congratulations! You are probably feeling optimistic about your company’s future. To turn that optimism into reality, it will take some realistic expectations. One of the most important is that your business is going to make money.
Your business will need to make enough money to cover your expenses and then some so that you will have a profit. A large corporation might not have the same concerns that a small business has, but the objective of both is to turn a profit. Therefore, you may need to employ different strategies.
Embrace Technology
While businesses of all sizes use technology, smaller ones may use it in different ways. Even a one-person operation can present itself online as a capable, professional and trustworthy company and throw its hat in the ring with larger firms.
Businesses that may have struggled to be seen are now capable of visibility around the world. Build a clean, professional website as a starting point. From there, you can build a social media presence.
Digital marketing is inexpensive compared to traditional advertising methods. You may be able to create a marketing campaign from just a small investment.
Technology can work to your advantage for day-to-day business functions as well. A paystub generator can help you if you do not have the resources yet for an accounting department.
Other types of software like inventory management, e-commerce or project management can help you digitize or automate functions for you or employees wearing multiple hats.
Research Your Market
You may have a terrific product or service, but if you don’t have a market in which to offer it, you won’t be profitable. Before investing time and money into your product, make sure people want to buy it.
For example, if you are a snowshoe maker who lives in Hawaii, you may have trouble selling your product locally, so be sure to look into e-commerce and international markets.
Developing a target market is an integral part of a research strategy. Find a definitive customer base and build a relationship with them before branching out to another market. Growth is important, but a solid, loyal base provides stability. Usually, it is more costly to obtain new customers than it is to keep current ones.
Keep It Lean
The expenses of daily business operations can add up quickly. Whether it’s paying for building utilities, purchasing inventory, buying insurance or any number of tasks that incur expenses, it’s easy for costs to accumulate.
In the beginning, try to keep your overhead as low as possible. Maybe that means operating out of your basement instead of an offsite building, using low-cost social media campaigns instead of traditional advertising or negotiating with suppliers.
Small businesses usually have some room to get creative. Have you considered bartering with other businesses? Perhaps another small company could benefit from your product or service in exchange for something.
Other small business owners might be grateful for the opportunity to work with you and save some money too. It’s a good way to network, develop relationships and accomplish some cross-promotion.
Bartering is also a way to build a portfolio, a list of references and a positive reputation — all important parts of a loyal customer base.
Maintain Flexibility
When you believe in your product or service, it may be tough to face the possibility that it might not sell as well as you need in order to make a living. That’s one of the realities of business ownership.
However, if you are creative enough to come up with one fantastic product, who’s to say you can’t think of another? A backup plan (or two, or three) can be your ace in the hole if your main product does not develop a profit margin.
There may be something along the same lines as your product or service that will sell better than your original one.
Opening a business is an exciting venture. With preparation and realistic expectations, you will position your business for success.
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