Startup Owners: How to Survive Your First Year in Business

Taking a business from concept to reality is a lot of hard work. Elon Musk famously once compared starting his own business to “eating glass and staring into the abyss.”

As a wannabe entrepreneur, you’ll probably be well aware that the road ahead is unlikely to be smooth sailing. You’re going to hit several potholes before you reach your destination.

While we don’t have a jack or a spare wheel, we do have plenty of startup survival tips. You can read 13 of them below:

Financial Factors

Save Up

You’re unlikely to turn a profit in your first year of business. Equipment costs and your own personal wage will quickly add up. It’s therefore wise to have at least a year’s worth of savings to fall back on.

Research Tax Benefits

There’s a level of risk associated with starting any new business. Thankfully, the UK government do their best to help mitigate those risks through tax incentives.

Some, such as the Annual Investment Allowance, allow you to claim 100% tax relief on plant and machinery. Others, like R&D Tax Credits, are designed to reward SMEs that try to innovate.

Create a Cash Flow Forecast

In the United States, approximately 82% of small businesses fail because of cash flow problems. In other words, it’s something you should pay close attention to.

Setting up a cash flow forecast will allow you to keep a track of where your money is going. More importantly, you’ll be able to estimate how much money will be left over at the end of each month.

Always take into consideration seasonal variations. Your heating bill, for example, will be much higher in the winter.

Keep Money Aside for a Rainy Day

It can be tempting to take any money you earn and reinvest it into your business. Don’t. Things break. Bills rise. Accidents happen. Unforeseen expenses are part and parcel of life, so it’s wise to keep capital aside for a rainy day.

Stick to One or Two Products/Services

Don’t try and walk before you can run. Stick to what you’re good at during your first year in business. Once you make that a success, you can diversify your business into other fields and take more calculated risks.

Physical Factors

Exercise Regularly

Starting a business is stressful. One easy way to alleviate feelings of tension and anxiety is exercise. Getting a sweat on causes the brain to release happy hormones called endorphins.

Staying stress-free will help you to make more logical decisions. It will also keep you healthy, which in turn will mean fewer sick days.

Take Your Diet Seriously

You wouldn’t fill up your car with oil, so don’t just rely on fast food to fuel your body. Eating a takeaway cheeseburger might save you time, but it will also have a detrimental effect on your performance.

This is backed up by the United Nations’ International Labour Office. They found that a person’s productivity is significantly impacted by the diet choices they make.

Sleep Eight Hours a Night

A lack of sleep can make you irritable and forgetful, which is never a good combination for running a business.

The Sleep Research Society recommends that you get a minimum of seven hours shuteye a night. This, they say, will help you to perform at your optimum level and also avoid several adverse health conditions.

Psychological Factors

Arrange Downtime

Being an entrepreneur is time-consuming, but you should always free up your diary for friends and family. Spending time with loved ones is a key building block to a healthy lifestyle. The little things, such as being able to drop off the kids at school, will bring you far more happiness than money ever could.

Exercise to Improve Your Self-Esteem

We’ve already touched on how exercise can help to reduce stress levels. What’s also important to note is just how big an impact it can have on your own self-confidence.

Looking in the mirror and being happy with the reflection is important in business. If you feel you look the part, you’re more likely to act the part.  You will likely meet people – investors and customers – on a regular basis. How you carry yourself in these situations can have a big impact on your startup’s success.

Set Quantifiable Targets

You need a way to measure the success of your business during the first 12 months. You also need something that will motivate you to reach a certain goal. The answer to both of those conundrums is quantifiable targets.

Make a list of three measurable goals before you open your business. These should be simple and conveyed in a sentence each. Then hang these targets somewhere prominent to remind yourself what you’re working towards.

Ask for Help

No matter how much reading you do, it’s impossible to be an expert in every single field of business management.

One of the greatest free resources you have at your disposal as a new business owner is people. Don’t be afraid to ask past work colleagues or internet message boards for advice. After all, you don’t have to take it. You can use it, however, to make more well-rounded decisions.

Think Positively

Believe in yourself and what you’re trying to achieve. Your passion is what will help to set you apart from your rivals.

There will be hiccups along the way. Learn from them and remind yourself that going outside of your comfort zone is how you grow as a person and business.

from Feedster https://www.feedster.com/startups/startup-owners-how-to-survive-your-first-year-in-business/