How’s business? It’s the question business owners are probably dreading the most this year. Ask it aloud and you’re sure to be answered with an “uhhhh,” an “egghh,” or even a rolling of the eyes or shaking of the head.
The fact is that the business landscape has changed dramatically because of the current economy. But if you talk to analysts and key decision-makers, a distinguishable and repeatable truth emerges: You can’t afford to do nothing. It’s time to be proactive. Now is the best time to embrace your entrepreneurial spirit and start your own business!
Believe it or not, there are certain business sectors that continue to grow and thrive despite the economy. These industries include: alternative energy, healthcare, tax preparation franchising and technology, among others.
Every entrepreneur will have questions about how to jump start their business – in this economy or any other. Below are some of our top tips for launching a new business in this rough economy.
1) Make a Business Plan – The key to your business plan will probably be your breakeven analysis, a profit and loss forecast, and your cash flow projections. Building an integrated and well thought out business plan also allows you to determine potential start-up costs and marketing budgets. Because if you can’t make the numbers work on paper, how do you think it’s going to turn out in real life?
2) Put Agreements in Writing – if you decide to join a franchising system (a good bet because of the national brand power and support resources available) or go out on your own, it’s always a good idea to get everything in writing – even if it is not legally required. Be sure to get things down like contracts for services, employment policies, and even purchase orders. It’s a good habit to get into giving and receiving receipts for everything, no matter how small or large the purchase.
3) Build a Competitive Edge - Building a competitive edge into the fabric of your business is vital to long term success. Know more than your competitors, protect your trade secrets, have a crisis plan in place, and always look out for new ways to drive customers to you.
4) Pay Your Bills Early and Taxes on Time – A good strategy is to always pay your bills up front or early. You gain trust and enhance your credit profile – all good things to have in case things do go poorly. Most importantly, pay your payroll taxes on time: the IRS can hold you personally liable for these taxes – and impose stiff penalties – if they’re not paid. If you have any tax questions, contact a local tax professional near you.
4) Understand How and If You Will Make a Profit - In just a few sentences, you should be able to write in your business plan how your business will make money and – ultimately – succeed. You’ll need to understand your costs, purchasing, inventory, rent, employee salaries, and a host of other costs to determine what you need to do every month to cover these expenses and make an adequate profit.
This entry was posted on Wednesday, March 4th, 2009 at 2:44 PM and is filed under Entrepreneurship. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
