What have I learnt from starting my own business?
National Waterproofing and Industrial Flooring (NWIF)- the commercial flooring melbourne experts – has been in business for a while now. I took some time out last month to share some of our learnings with Sprout Online. Here are 5 tips for a start-up business:
Tip 1: Have an online presence
This is something that can often be neglected, especially in the construction industry. However, with more and more people using the Internet and with 93% of online sales originating with a search engine, a web presence and an online strategy, these are a crucial part of any business. A website has become the new storefront for businesses in our modern era. Developing good content and disseminating this across your social media platforms are important for improving brand awareness and generating sales.
Tip 2: Plan for the first year
Small business owners are often unaware of the challenges that face them in their first year of business. Planning well for the first year can assist to manage these inevitable struggles. Planning is essential for any business, but particularly important when starting out.
*Be realistic, even conservative, about spending each month for the first year of business and make sure to plan all of it out on a table or a spreadsheet.
*Spend as little as possible. If money is not coming in, money should not be going out.
*Cut unnecessary expenses.
*Brainstorm ways to attain clients on a regular basis.
Tip 3: Plan beyond the first year
Planning for the first year is always wise. Planning for the next 5 years is also essential. Long-term planning allows you to identify problem areas and opportunities as well as form relationships that can lead to success beyond your first year. Ask yourself – what will your business look like in 5 years’ time? Once you have a clear vision, develop an action plan with time-bound and measurable goals.
Tip 4: Pay all outgoings on a monthly basis
Sometimes it seems easier to pay for an expense in one lump sum rather than on a monthly basis. While this may be true, our experience says it is certainly smarter to pay outgoings on a monthly basis. Why? This strategy allows cash flow to be better managed – every start up should be thinking about how they can be making a profit each month, before they start thinking about how they will make profit in the first year. Paying outgoings on a monthly basis also reduces risk.
Tip 5: All moneys received should not be immediately spent
When a business starts earning money, there is always a temptation to spend it. Some business owners have a tendency to personally splurge when a business does well in its first year; others may use profits to purchase things for the business that are not entirely necessary. When money comes into the bank in the first year, we recommend that you save some of it to account for unexpected costs (which will happen)!
We hope that these tips we’ve learnt as a once upon a time start-up in the construction industry helps your business to flourish both in that all important first year and beyond!