Earning money is getting relatively difficult these days. As some companies had to face the challenges of the pandemic, it might have become difficult for you to sustain or find a job. That’s why most of us have resorted to starting a business.
Investing in a business is perhaps one of the smartest things to do in our current situation. You earn money, and you also get to enjoy some of the best benefits of entrepreneurship. However, you need to ensure that you know what you’re doing to keep your business successful. We prepared this article to help you during your first year of business.
What to Take Care Of
The start of any business is often the hardest stage. However, it can get easier if you know what to take care of. You’ve already taken the leap, and after that courage comes intelligence. Here are some of the most important things you need to handle.
Your business pitch is what you use to convince people to try your service or product. If that has worked for you, you need to constantly improve it. In its simplest form, the pitch states what your business is trying to solve. After the first year, you might be ready to take on bigger problems, and that’s why you need pitch improvement.
If you’ve just started your business and you’re not quite aware of tax laws, be sure to keep records of your serviced accommodations. This includes air conditioning units, pipework, cabling, and anything that may deteriorate over time. The money your business spent on these can be deductible from your annual tax. That’s why it’s important for any business that uses a real estate property to understand capital allowances.
Revenue is Not Profit
One common mistake among business owners is to assume that revenue is the same as profit. Revenue refers to the total amount of money your business has gathered. However, when you deduct the expenses such as your salary, office rent, and labor costs, among others, that’s when you get your total profits. To ensure that your business is growing, map out your costs and compare them to your net profit margins. It’s best to have around a 15%-30% difference between these two to guarantee that you’re not losing money.
Organize Your Finances
Around 20% of businesses fail during the first two years, which grows higher over the next few years. One of the main reasons for this is that business owners fail to organize their finances. Make sure that you have records of everything. Money that comes out and comes in should be listed all the time, and you have to keep track of where they’re going. Otherwise, you wouldn’t be able to handle it properly.
It’s rather easy to forget about your health when you’re taking care of a business. When it’s running bad, you have a lot of problems to fix. On the other hand, you also want to keep it growing when it’s steadily earning money. However, some business owners fall into entrepreneurial depression as they often forget how important their health is. Ensure that you keep working out, eating healthy food, and enjoying a vacation from time to time to refresh your mind.
Dismiss What Doesn’t Work
There would be times when you’re certain that a specific idea would further grow your business. However, it’s not always the case that your consumers would feel the same. Do not be stubborn. Some ideas aren’t just what customers are looking for. Whether it’s a new feature, a marketing strategy, or many others, if it doesn’t work, don’t force it. You might lose some valuable money in the process if you keep on fighting for something that’s just not generating an income.
Focus on Your Selling Point
Opportunities would frequently knock on your door, but that doesn’t mean that all of them will work. Jumping at every opportunity on your doorstep is not a wise idea. You’ll be spending your money on things that you’re uncertain if it’ll work or not. Be sure to keep your mission and vision in mind and take the opportunities that only support your selling point.
Lastly, don’t forget that entrepreneurship is a fun career. Sure, it’s stressful at times, but it’s almost always worth it. Keep on learning while you build your business, and make sure that you have fun doing it.
Having a unique idea is one thing. It’s the building process that’s always the most difficult. When you’re in the first year of your entrepreneurship, be sure to keep in mind all the things you need to take care of. That’s the best guarantee that you’ll be successful.