Business Law Business law, often referred to as commercial or...Read More
BUILD A BUSINESS ON A BUDGET
One of the many things that goes into building a successful business, is having a comprehensive and realistic budget- and sticking to it. A comprehensive budget takes all factors about money and how the way you are building your business is going to affect cash flow, every step of the way. A realistic plan is one that does all of this while also having subsequent plans in case your business operations do not belie your budget.
There are many different types of businesses and coming up with one business’s budget may not entail the same steps as for a different type of business. There are many, many different factors that go into what makes a budget a sound one. With more and more business being done online, different kinds of business models are becoming relevant. While traditional street-side brick and mortar businesses are still a strong part of the American economy, most of them have a hard time competing with web based businesses. Many of the big name chain stores that were once completely brick and mortar businesses, still continue to have a strong presence in this market but have also begun to do large portions of their business online.
Almost everyone who has started a business knows how difficult it is to do. Even the most successful business owners can tell tales of difficult beginnings. Only four out of five businesses survive their first 18 months of operations and only four out of 100 survive up to the ten-year mark. Even with these odds stacked up against new businesses, some survive and thrive.
It does not matter how modest your beginnings are or where your startup money comes from, coming up with a realistic budget for your new business is almost as important as the product or service you have available and know people are going to wonder how they ever lived without. Most businesses begin with an idea that someone is passionate about. In this sense, all businesses started out at some point with little to no operating capital. As good as they are to have, ideas can’t pay your startup costs, the rent on your home, or for the cups of coffee you and your new business partner drank while agreeing to go into a legitimate business together. Once you start trying to get your product made or service developed, to ultimately be able to offer it to consumers- is when operating capital starts becoming a necessity to move forward.
Some basic rules of thumb to keep in mind when developing a business plan and a business budget include
Always Deliver Value
Convey a real value proposition. Make your product or service a value to those who want or need it.
The Customer is Always First
This goes with the old fashioned but true statement, the customer is always right. There is no room for egos when it comes to running a business.
Be Open to Change
Companies often need to transform to stay afloat. If you are not open to accepting and making changes, it may be a detriment to your Success.
Believe in your product or service, believe in your dream and believe in yourself.
Focus is power. What you focus on is what you will gravitate towards. The more you are able to focus and move towards your goals, the more successful you will be. There are usually no guarantees for success when someone starts a business but the more informed you are and the more comprehensive your business and budget plans are, the more likely your chances are of succeeding.