Do Linemen Get More Connections Than A Running Position Football 5 Tips to Starting a New Business

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5 Tips to Starting a New Business

Many entrepreneurs starting new businesses ask me what I should know at the start-up stage.

Here are 5 essential things you need to know:

1. Make sure you have some alternative cash flow or built up funds. Initially, most start ups do not make substantial money for their owners. They can be successful if handled well and given enough time to grow, but they tend to initially take money, not make money. Creating funds to compensate for this advantageous position can make things much easier to bear. It is also a wise decision to have an alternative stream of income to compensate for the unprofitable business to begin with. Starting a business with the assumption that it will pay all the bills in the beginning is not realistic and should be avoided at all costs.

2. Have a good business plan. While the majority of start-ups fail before they actually get off the ground, it’s important to mitigate this risk. A business will be the product of your time, effort and initial capital; It’s worth at least having a good solid plan to increase your chances of survival. Not having one doesn’t guarantee that a company will fail, but it will certainly reduce the already slim chance of success. A good plan that sets goals and sub-goals and ways to reach them.

3. Designate authority when necessary. As the old saying goes, “Rome wasn’t built in a day”. Another fact is that it was not built by just one person. A business owner really needs to treat the company like a coached sports team. For example a football team has different types of players for different situations and jobs. A defensive lineman must be very big and strong, while a receiver must be very fast and have excellent reflexes. No single person could fill all these positions perfectly. A company will also have many jobs. It is important to adapt each person to the job they are best at. All too many business owners want to make it a one man or one woman show. This is a big mistake. Saving money is important in the beginning, but this is an area that should not be overlooked. If there’s at least some alternative income coming in, it’s a wise move to hire someone as a contractor to help in an area where you’re not an expert.

4. Use low-cost or free advertising. Many people in this day and age still think of radio commercials and TV commercials as advertising. While this is a great way to give your company more exposure, not all of us can afford such expenses initially. Websites, blogs and social media marketing are all free or very low cost. Without them, the company would be at a great disadvantage. If a website seems too expensive or too technical, consider this; A hosted web site usually runs about $10 to $20 per month. In today’s world it is impossible to run a company without a website. The blog is free and so are the posts. A blog is basically a small web site where you can post articles about what your business does or similar industry related topics. The idea here is to get people to your website, so having links to your website on your blog can really drive traffic. Social networking sites can connect you with many potential customers or clients. Connecting with people and talking about what you do can be a great way to get more exposure.

5. Contact everyone you know and tell them about your business. Old friends from high school, your next door neighbors, family and acquaintances; Contact all these people and make them aware of your company. Don’t try to sell them or anything, it’s really annoying and counterproductive. Tell them subtly about your new company and don’t try to sell them your services or products. They’ll probably tell their friends “Hey I ran into Jason the other day; guess what he’s doing?” If done right, your company’s message can spread like wildfire. You also never know which person from your past or present may seek your company’s help.

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