Sink or swim – Starting a New Business
Sink or swim – Starting a New Business
If you’re Starting a New BusinessÂ you should, like any successful entrepreneur, start with a vision.
Aspiring toÂ Starting a New BusinessÂ you must imagine the type and caliber of customers they wish to serve. They must invest in the resources that will attract and retain this roster. And then they must adjust expectations – beginning with revenue.
“There is no cash flow until that first customer,” saysÂ Gustavo A Viera, founder and managing director ofÂ a Miami CPA FirmÂ specializing in small business accounting and consulting firm. “There is a significant amount of risk, so you have to have the fortitude to hold on for a few months or so of preparations before you see dollars. Starting a New Business usually meansÂ negative cash-flow. You’re laying out cash today, hoping you can collect tomorrow.”
When you’re Starting a New Business, really think about the type ofÂ company you want to be, the type of customers you want to attract. You don’t necessarily want to take on every client to get revenue, but make sure it fits with the long-term strategic goals. You have the luxury of shaping the firm you want it to be. If you’re looking for high-quality, larger corporate clients, you want to look like them, act like them.Â Go with quality stuff – marketing materials and office space. Do it right the first time so you don’t have to rebuild the image later.
Some new business ownersÂ tend to be closer to the stereotypical introverted person who doesn’t like going out with people. It’s a real push to get to get out ofÂ your officeÂ and make salesÂ calls. I’m not talking cold calls – but calling customers, attending community events and networking activities.
The only way to overcome this trepidation is to dive in the deep end. For bringing in business, you’re going out and selling and trying to meet people; you have to keep on doing it, on an ongoing and regular basis, to get comfortable with it. It’s like public speaking – the best way to deal with that fear is to go out and do it.
This is especially critical for the next generation of entrepreneurs, who will have access to an unprecedented number of firms on the market as Baby Boomers begin to retire in the next 10 or so years. Though sellers will outnumber buyers, having a well-rounded skill set will ensure that the next wave of owners make successful transitions.
ADD AND SUBTRACT
Once you’ve pulled the triggerÂ Starting a New Business, newÂ business owners should remember the familiar 80/20 rule, wherein 20 percent of customers represent 80 percent of fees, as well as the reverse. It’s only when revenues start taking off that sole practitioners can begin balancing the scales.
That 80 percent can really bog you down. They don’t like to pay fees and are problematic customers. What you need to then do, once you’re at the point where you have enough money to pay the bills and cover overhead, now you need to look for the 20 percent clients. Once you find quality customers, you’re going to fire the non-quality customerss.
SWING AND MISS
This motivation should keepÂ entrepreneurs in a big-league mentality.
It’s all about times at bat, continued, instead of a good batting average. The more bats you get, the more hits you get. There is a fantasy, myth,Â including for restaurants, that once they hang out their shingle, people will come, like Field of Dreams.
Fortunately there are various ways to get your name out to the public and get outÂ of the dugout.
The best way is to start networking with a number of different kinds of groups – find the area you want to work in and internet marketing. Find a good SEO/SEM firmÂ and hire them. Go network, press flesh, hand out cards; be aggressive in wanting to service those clients.
Networking should go beyond attracting customers and extend to roundtables of business-owning peers in an effort to retain and grow this new business.