- 1). Prepare a business plan. Do all of the research and to make the plan as extensive as you can. Provide such information as market research results, as well as a fine-tuned business description. Include information about what you are selling, as well as how you intend to organize and manage the business. Create a five-year plan, and make changes to the business plan as your business grows.
- 2). Make a budget, and stick to it. Decide how much you can realistically afford to pay for your businesses expenses, such as rent. If you pay more than you can afford for rent, your business will likely fail. It also helps to conserve energy and water as much as possible. Buy only what you know you will need wholesale. Do not go overboard because you may not be able to return partial shipments for a refund.
- 3). Save money on other expenses as well. Purchase real coffee cups for the break room rather than wasting money on disposable cups, and reevaluate what cleaning supplies are necessary. Reuse whatever items you can, such as clothes hangers if you own a clothing store, and request that your customers use canvas bags rather than providing them with paper or plastic. Purchase only what is necessary, and research to find out where you can get the best deals on everything.
- 4). Save money only after you pay the bills and employees. Use this savings account strictly for business, in case you run into trouble later on. Be prepared. Do not invest heavily with business money either, as investments can fail. Depending on such investments does not constitute a wise business strategy until after your business succeeds anyway.
- 5). Hire only as many employees as you need, and check them out carefully. Find out if they have a criminal background that could have adverse effects on your business. Call their previous employers and ask questions about your potential employee's honesty, as well as whether or not they are reliable. Find out exactly what each employees' strengths are, and use those strengths to help further your business.
previous post