If you want to fulfill a dream of running your own business, then you need to make sure you have all your ducks in a row first. Yes, it's an exciting time, and no doubt you will want to steam ahead and get going, but if you don’t plan properly, it could go badly wrong.
Statistics suggest that 1 in 5 small businesses fail in their first year, and a massive 50% are no longer trading by the end of their second year. If you want to make sure you aren’t one of them, be prepared, remain cautious, and stay focussed.
Here are 3 vital things all start-ups should consider before launching.
Do you have the necessary funding?
You may have the finances to get you started, but what if sales don't take off as you have projected? If things don't go as smoothly as you anticipate, will you have enough to keep things ticking over until they pick up? Lack of funds is one of the main reasons that small businesses fail, so make sure you have a contingency in place, and it could help save your business if things don't go to plan.
If you don't feel that you have adequate funds, approaching your bank for a loan could give you the stability you need. Before offering any funds, they will analyze and judge the viability of your business, so be prepared to spend a bit of time putting together a business plan.
Protect against cybercrime
Not only should you keep your business information protected but also personal data relating to your customers. In fact, you are duty-bound to do the latter and so ensuring that you are protected is essential. While falling victim to a DDoS attack is more unlikely, small businesses are regularly targeted when it comes to phishing attacks and other forms of cyber-related crime.
As well as a firewall, you will need good anti-virus software that will adapt and cope should your business grow. If you are in any doubt about what may be required, talk to an IT specialist. If and when your business expands, you may even wish to outsource this function to ensure that your business and customer data is safe and secure at all times.
Consider a customer relationship management (CRM) system
CRM software allows you to keep records of customers, track ongoing prospects, and can help to build relationships with customers. It may make sense to use an off-the-shelf package in the first instance, then build upon it once you know that your venture is heading in the right direction.
A CRM system not only allows you to find out more about your existing customers and target demographic. It also provides a means of tracking customer care issues, quality control, and other useful information. The better the data entered, the more data can be extracted, so it’s worth looking into so you can start monitoring and analyzing straight away.
