4 Tips on How to Run a Successful Independent Business

Starting your own business can be a daunting task. There are a lot of considerations to be made, and the whole endeavor isn't exactly cheap to undertake either. Not only that, but about half of the new businesses fail within the first five years, and we have no doubts that this is what scares most potential entrepreneurs away from actually lifting off.

However, it's not all so grim and terrible for new business owners. There are a few guidelines that, if followed, will improve the chances of your business taking off and generating a profit greatly. Luckily for you, we've collected a few of those guidelines in this little article, so, if you're planning on starting a new business, give them a look, and you might just get a few ideas on how to run your fledgling company.

1. Have a Game Plan

Most new entrepreneurs have an idea, a notion of what they want to do, whether they’re creating a new product or offering a service. However, the usual downfall of such ideas is the lack of a clear and deliberate game plan.

As a new entrepreneur, you need a detailed plan of your business – the course it will take, the market niche you will target and the amount of money it will take to finance your business. From there, you’ll need to project your growth, think of possibly hiring new employees, and expanding your business. And all these elements need to bring you closer to your end goal. Without a clear-cut business plan, you’ll not be able to convince investors to invest in your company, or banks to give you loans.

Speaking of plans, you also need to plan your exit strategy, in case things go sour. As we said, businesses fail, and you need to have a contingency plan that will allow you to break even if your business isn't running profitably, so as to protect your assets and your finances and not generate a debt you cannot repay.

2. Examine Your Finances

To start a company, you’ll need capital first. Most new businesses tend to fall on loans to finance their endeavour, but this is a double-edged sword. Yes, it makes taking off much easier, but it can hurt you in the long run. Most businesses expect to start generating a profit right away, but you might be months, if not years, away from generating a good enough profit to cover your production costs, pay your bills and pay back the money you own, and actually see a return of investment. Besides, there are many more ways to finance your business than just bank loans, such as crowdfunding or tapping into your 401k.

To avoid such a problem, it is highly advisable to save up as much of your own money as possible. If you are already employed, you might be tempted to quit your job and devote yourself full-time to your idea, but that will definitely hurt your pocket and put a stop on your plans.

3. Hire Professionals

There is nothing more intoxicating than having your own success story of how you surmounted unbelievable odds on your own. But the reality is, you won’t be able to do everything on your own. You simply don’t know enough, and you simply don’t have the expertise in every possible field of your new business.

This means you’ll probably have to hire some professionals. The advantage of outsourcing some of your work is that you’re paying for quality work while not binding yourself with a long-term contract that compels you to keep them on your payroll for years to come.

With that being said, there are companies that offer a comprehensive analysis of your fledgling business. Companies like Dean-Willcocks Advisory offer a wide range of services, including financial stability projections, management advice, planning of exit strategies, contract reviews and many other things you might find useful for your company. You also might want to hire a digital marketing agency to help you boost your exposure, as, in the modern world, traditional marketing is giving way to social media and online content exceedingly quickly, and the sooner you jump on the bandwagon, the better.

4. Protect Yourself

Protecting yourself and your assets is of prime importance when starting a new business. We already stressed how easy it is to go under when starting a business and how important it is to have an exit strategy, but, what we haven’t noted is the importance of insurance.

Having the right insurance policy might just be the difference of you walking away from an unsuccessful attempt virtually unscathed and your business going down in flames. People often say, who knows what can happen tomorrow, and, though it's easy to dismiss that you might get struck by lightning tomorrow, it doesn't hurt to have a good policy in place against loss of life and property when the business you've put so much into is on the line.

Conclusion

And, with that quick tip about insurance, we’ll put an end to this discussion. As you’ve seen, there are only a few guidelines you have to follow, but each guideline is more complex than what it seems on the surface, so expanding your knowledge along these lines is a must. Read, listen, watch and ask for advice on how to start your business, and, eventually, you’ll have enough know-how to actually start a successful company in no time.