There is nothing more exciting, yet scary, as starting your very own business. On one hand it can be a thrilling adventure into entrepreneurship, but on the other, it can be one of the most demanding periods of your life.
Today, we’re going to offer our top tips for surviving your first year in business – not just financially, but mentally too.
Begin with a Business Plan
Starting your own small business is a huge commitment and certainly something you shouldn’t pursue without a plan. In this case, we’re talking about a business plan, which will allow you to map out the most important elements of your company, including your target market, competition, funding requirements, milestones, and more.
Keep Your Expenses as Low as Possible
One of the most common reasons why a new business fails is because they run out of money or rack-up large debts. To avoid going down this path, it’s best that you keep your expenses as low as possible, especially during your first year in business. Only spend money on the things you vitally need and this also extends to employees and a work space. How can you cut costs in these areas?
Build Your Network
You know the saying: it’s who you know, not what you know. Don’t be afraid to reach out to other entrepreneurs or small business owners to learn from their journey. We also recommend that you attend as many networking or educational events as you can, as you never know when or where you will meet your next business partner, mentor, or customer.
Reinvest Your Earnings Back into the Business
One of the biggest sacrifices of starting your own business is a regular paycheck. While it might be tempting to run out and spend your first earnings on your favourite luxuries, we advise that you actually pump this money back into your business. Think about areas such as your products, marketing, customer experience, and more.
Keep Track of Your Progress
To ensure your business model is working, you’ll want to track and measure your progress. Metrics you’ll want to track include: how much money you make compared to how much you spend (profits), how much it costs you to get a new customer (cost per acquisition), how many customers return to your business, and how many customers refer you to others.
Understand Your Financing Options
When you’re just starting out in your own business, it can be easy to feel as though you’re all alone. Thankfully, there are plenty of avenues to turn to, especially when it comes to new business finance.
While banks are notoriously difficult to obtain funding from, particularly during your first year in business, alternative lenders (like Lumi) have got your back. We offer loans from $5,000 – $100,000 on terms of 3 – 12 months. To qualify, you simply need to have been running your Australian-registered business for at least 6 months and have a minimum annual turnover of $50,000.
Want to find out how Lumi can help your small business? Please call 1300 00 LUMI to speak to a member of our customer sales team or visit our website to apply for an unsecured loan.