3 start-up tips for smooth sailing

You have undoubtedly heard of and may have experienced the failure of a small business.  Ever ask yourself why does a small business fail? This question is especially crucial in these challenging and turbulent economic times.

There are many schools of thought about what a business owner should and should not do to keep a new business afloat in the perilous waters of the entrepreneurial sea – here are some tips:

Make Sure You Have Sufficient Capital

A fatal mistake of many failed businesses is starting out undercapitalized.  Many businesses owners underestimate how much money is needed and they are forced to close before they even have had a fair chance to succeed.  Also, they have an unrealistic expectation of incoming revenues from sales.  Consider getting help from a small business development center in your area (www.sba.gov/sbdc) or the Service Corps of Retired Executives (www.score.org) before you open your doors to make certain you have determined your start up costs, breakeven point and other critical financial calculations.

Hope for the Best, Plan for the Worst

The occurrence of disasters is out of your control. However, how you plan to deal with a disaster can be the difference between survival and failure.  First and maybe foremost is ensuring that you are adequately insured.  Don’t try to cut costs by underinsuring.  If your inventory and equipment and other assets aren’t adequately covered and you have a loss, you probably won’t recover.  Also, make sure you have the proper level of insurance for flooding, workman’s compensation and liability.  Don’t forget about your computer files. Back up your files often and store them off site or in a fireproof/waterproof safe.

Don’t Start Your Business for the Wrong Reasons

The only reason you should start a business is to make money. Forget about being your own boss or that you will be able to spend more time with family – those and other noble reasons will get watered down over time. Most new small businesses will face challenges and as vetrepreneurs, you are up to the task. 

Vetrepreneurs know that failure is not an option and are willing to remain open-minded for suggestions for success.

GOOD LUCK!

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