Although the UK economy appears to be getting back to pre-recession levels of activity, this doesn’t mean that a large a number of new business start-ups are struggling to make ends meet. As a result, it’s a good idea to accept every tip and piece of advice on how you could help maintain strong growth in that difficult first year whenever it’s available. To help, we’ve collected 3 of the best pieces of advice from around the web and put them in this handy guide.
3 –Putting Profit Second
It might at first sound counter-intuitive to put profit behind other priorities if you’re trying to keep your business afloat, but it might actually be the best philosophical decision you can make in your first year of business. This is because those who don’t do enough rigorous planning or take the time to establish and implement proper and effective strategies will likely fail. Therefore, take time to buy the right assets, and if you can’t afford to get them outright, lease them. As an example, you might not be able to purchase the vehicles your business needs, but you might be able to secure the monthly funds to lease them.
2 – Establishing and Measuring Your Pipeline
There are two kinds of business: those which rely on talent alone, and those which rely on their talent and the measuring of their talent to improve the pipeline. The second type of business has the advantage over the first, because although it’s extremely beneficial to have good employees who you can rely on, it’s also good to know that if some part of your business is doing better or worse than you expected, so you can figure out why and look to build on it.
1 – Recruitment and Employee Retention
According to some, recruitment is your greatest cost right through from when you start up as a new business to when you’re a global corporation. Therefore, it’s essential to find the right employees, and then to keep them with you for as long as possible. To do this, get to know your future staff using their social network profiles, and by taking the time to learn about them at their interviews. Then, when you’re working alongside them, offer strong financial and non-financial incentives to keep them from jumping ship.
So there you have it, 3 financial fail-safes to prevent your new business from taking a turn for the worst. Follow these practices, and you’re sure to give your company the advantage over the competition.