There is a number of articles regarding business and how to handle them. But have you ever come across handling of startup business? Well, a startup business can be compared to a newborn baby who requires more and more of attention until it grows. Taking care of startup business is like nurturing a baby grow in a good structure. Here in case of business, by the term “structure” it means the organizational structure, financial stability, etc.
Having a positive thought and approach is good, but having high expectations from startup businesses is also not good. There are some businesses which achieve instant monopoly and revenue. But this may not be the case in other businesses. To withstand in the market, the business has to undergo many ups and downs to achieve desired profits. In case the startup business does not flourish, people may feel that the strategies used are not good. Maybe it is right, but putting all the blame on marketing strategies is wrong. Any and every business requires certain time to withstand in the market. Once it attains some hold on the market, one can plan and make marketing strategies to improve the business position.
Let us now discuss some tips to handle a startup business
Planning is vital in all stages of life. No matter what respect, planning always helps to manage and organize ourselves. Always make a “plan of action” before starting something new. This “plan of action” involves step by step actions to be taken in given situation. The situation may differ, but it has to be handled very diplomatically. When “plan of action” is made, you will actually know what is that you want to do; what are the sources you require to accomplish the task; and how much time it takes to accomplish the task. By this, you will also get a rough idea about the expenditure involved in it and the final revenue you are going to earn. It is only when you really start the business, you will face the actual issues. Do not fear as these issues are temporary and can be handled easily, but ensure that these issues are sorted out at the earliest as any delay in solving these issues will make the situation more worst. The common issues faced by many startup businesses are:
Finance: Normally, any startup business will be small in nature in initial stages. It may be started by an individual or a group of persons like in case of a partnership. So, the funds accumulated as capital will be very less or limited. Therefore the amount should be spent appropriately. Always ensure not to indulge in high expenditure even though it is at one time and the returns from the assets may be high in future. Spending on such high-value assets is always risky. So it is advised not to make unnecessary expenditure which builds up the business debt. Sometimes, you may have a loan or debt from other sources. Always ensure that your financial sources are intact and reliable so that when you are in need, based on requirement, they come forward to give you a loan.
Provision of discounts: Any new business will concentrate more on promotional activities. This is because they have to establish themselves in the market. For this, they try all sorts of marketing strategies like providing discounts, etc. This idea is good. But the discounts you provide should not exceed your profit. If that is so, change your marketing strategy.
Supply of quality goods: To establish yourself in the market, you need to win the faith of Customers. So the quality of your products does the job of winning customers confidence. Concentrate on supplying the quality products to customers apart from promotional activities. Just promising to provide a quality product and not supplying the same will damage the business in early stage only.
Collections: There are two ways of collecting the amount from customers- cash and credit. Cash can be collected immediately as soon as the sale of the product is done. Credit means giving the customer certain time to repay the products amount. Since it is a startup business, cash collections are advisable. Once you have repeated customers, you may think of giving them credit. Once goods are given on credit to them, a regular follow-up is required because until and unless follow-up is their people won’t think of repaying your amount.
Collections are significant: These should be planned in advance. Only when the revenue comes into the business, the business can make use of it for production and settlement of operating expenses. This process is recurring and will be continuous as long as the business exists.
Clearance of debts:Whenever business takes a loan, the loan amount is called debt. Managing your debts is to be done on priority basis. Since it is startup business, it may be very difficult to get a loan in the first place. You may have to show your success in business to get a loan from financial institutions or mortgage some of your personal assets. You may face a lot of rules and regulations to get a loan. Once the financial institution realizes that you are prompt in clearing your due amounts, it may increase your loan amount.
Consistent funding is necessary for running a business
A business cannot run with only limited funds. So, an additional source of funding is always necessary. To get more loans, you need to clear your existing debts. Thus, a list of debts has to be made. According to the credit period given to you, plan to clear these debts within the given time. Always plan for the full amount, if not at least clear a part of the debt and communicate the same to the creditor. A proper communication always solves a lot of problems. In case these debts are not settled in time, and they pile up, debt settlement will become a huge issue, and debt settlement in initial stages of a business is not advisable. It may damage the business reputation.If you approach a settlement company, make sure that you check the debt settlement reviews. There are a number of companies today that cheat customers by luring attractive settlement packages. Going through the customer reviews will help you to understand the services they offer as well as the charges and other additional fees.
In case of massive debts, do not panic. Approach a good debt settler who will do a debt settlement review first and then plan to settle the debts in your favor.
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