The 3 things critical to the success of a new business
New businesses are begun every day and yet the failure rate remains high in the first few years of operation. Why? Well, the answer includes three critical things.
Knowing your market in the business you are launch is one important concern. If you have competition ringed around you with deep pockets and the same product/service, you're in for a tough stretch.
Knowing yourself. It's one thing to work for someone else doing a fine job at whatever you do for a living but quite another when you are doing it as a sole proprietor. Some people just don't have the drive to be their own boss. That doesn't make them a bad person but it does work against them in operating a business. A business requires many more hours than an employee puts in because there is so much more to consider for the business and it's especially true for new business launches.
Knowing how long your investment needs to positive cash flow. It's fine and good that you may have a tremendous product/service but if the business needs two years to start positive cash flowing and your funding only has enough for one then you're in a bad spot. It may take time for customers to discover you and you need to build that into your business plan. Oh you weren't going to create a business plan? You plan to take even a small trip right? Why start a business without one when so much is riding on it?
I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 05/14/2012