You finally started up your own business! The initial moves you made got you to this point. You begin to notice that you are not making as much money as you anticipated. This happens often with new businesses. New owners believe that as the doors open, the people will just come pouring through. Once the realization of negative cash flow comes into play, panic can set in. Here are a few tips to get your business on the right track.
- Look into the mirror and take responsibility. This is YOUR BUSINESS. You can choose to do whatever you want. Make a detailed list of your monthly expenses and your monthly income. If you are using software like Quickbooks, this is easy to achieve. If you do not know this information, start recording it now! Use your bills against your bank account for a ballpark for the first analysis until the next 30 days when you properly record your information.
- Cut back expenses. This may sound difficult; however, as an entrepreneur starting out, you must be smart and thrifty! Go over your expenses and see where you can make adjustments. Call your insurance company and ask for a better rate. Call other insurance companies and find one that’s hungry. (believe me there are alot out there) Switch your cell phone carrier. Companies like Verizon and Sprint charge top dollar for phone service. (Most people pay around $100/month which isn’t even unlimited service) Metro PCS runs an unlimited talk, text, and web, for $30/month which will save you at least $70/month… $840/year! Go green with documentation. Why use a stamp when you can email. All invoices and information which you would normally mail, email. The prices of stamps will add up! Raise your Air Conditioner to 78 F or even 80 F. If its a breezy day, open the windows and enjoy the fresh air. Its sounds silly, but electric is getting more expensive by the day! The little bit of temperature change will save you hundreds, if not thousands of dollars a year!. There are just a few areas where you can easily cut costs. Go through your business with a fine tooth and comb.
- Hustle. Don’t sit back and feel sorry for yourself. Get up in the morning and start off strong! And when I mean morning, I don’t mean 9 or 10 A.M. Get up at 6:00 AM and utilize the early part of the day. In fact, its a good idea to do a morning workout for an hour as a stress reliever. After you are done with your exercise, start focusing on your business and the areas you need to zero in on. If you need more sales, bring a stack of business cards with you and leave them at the post office, shipping stores, and any area where you see business cards posted. If you are a service industry and you already have a route, make door hangers and leave them on the doors of the neighbors where you work. If you need to get supplies and are at a big box store, strike up a few conversations with the customers around you. You will be surprised how many of them are looking for a qualified company to take care of their needs! Spend an extra 10 minutes in each neighborhood and get your name out there!
Starting a business is not an easy task. That is why 8 out of 10 businesses fail in the first 2 years. Most business owners aren’t willing to make those small changes and sacrifices to get over the initial hump. Remember you started a business to be independent, do something you love, and take control of your life! Stay positive and passionate about what you do and ALWAYS be willing to tweak your game plan. With enough time, you will find the right combination that will work for you and your company!