Revenue is the lifeblood of your business. If you run out of cash before you can manage to create an income that will sustain your business, the game is over. Tons of promising businesses run low on funds before they really get off the ground, and they fail miserably within a few short months or years. Here are three things you should avoid so you aren’t just one more of those failed businesses.
Being “Frugal” about Your Needs
When you’re traveling, conventional advice usually says that you should bring half as many clothes and twice as much cash. We have a similar rule in business: bring twice as much of everything you think you’ll need. This means twice as much time, start-up money, and confidence.
Everything always takes longer than it first appears, and when it doesn’t, it’s a downright miracle. There are costs that you will miss, mistakes that will happen, and road bumps that will appear without a second’s worth of notice. You should be completely prepared for the absolute worst.
Starting Huge
It’s okay to dream, and many entrepreneurs dream so big that their eyes are bigger than their wallets. Don’t set yourself up for failure; set yourself up for success by figuring out what can wait and what is necessary right at this moment. Sure, you may need a professional office space so you can meet with clients, but maybe you don’t yet need a whole suite with brand new computers and desks.
Buying Everything New
Not only is buying used eco-friendly, it’s just good sense. You don’t need to buy everything new because there are plenty of last-year models that are just as good as this year’s. Sometimes a printer that has one less button but costs half of what the new model costs is the only way to go.
Photo Credit: Scott Liddell