Starting your first year as a small-business owner is a significant shift from a traditional 9-to-5 job. Entrepreneurs face new challenges and risks, but with careful planning, they can not only survive but thrive. GOBankingRates interviewed three successful small-business owners who shared their practical and creative tips for navigating your inaugural year as an entrepreneur. Here are their insights to help you succeed:
Pay Attention to Numbers
Bill Nishanian, owner of Nash Painting, emphasizes the importance of numbers in small business. He advises creating one, three, and five-year plans that outline necessary salaries and reverse engineer revenue, marketing, and metrics to achieve these goals. Nishanian also recommends securing access to cash through tools like an SBA line of credit, ensuring you only pay interest on what you borrow.
Have a Cash Flow Forecast
Jennifer Barnes, CEO of Optima Office, underscores the necessity of a cash flow forecast. This tool helps business owners manage current and future finances, focusing on quarterly projections and updating weekly or daily as needed. Maintaining a solid cash flow forecast ensures you can meet financial obligations, especially payroll.
Set Realistic Expectations
Margo Perkins, founder of Margo Paige, advises setting realistic expectations, especially in the first challenging year. Recognize that gaining traction takes time, and be prepared for unexpected setbacks. Keeping a long-term perspective helps navigate through obstacles with resilience.
Focus On Your Vision
Perkins stresses the importance of staying focused on your business vision. Clarity on your vision guides decision-making, goal setting, and upholding your core values. This clarity keeps you passionate about your business, even during challenging times.
Don’t Let Small Issues Overwhelm You
Jennifer Barnes advises against getting worked up over minor setbacks. Focus on issues that will impact your business in the long term, rather than letting smaller details derail your focus and productivity. Maintain a high-level perspective to prioritize tasks effectively.
Take Care of Yourself
Self-care is crucial for small-business owners to prevent burnout. Perkins emphasizes the importance of maintaining a healthy work-life balance, getting adequate rest, eating well, and engaging in activities that rejuvenate you. Your well-being directly influences your business’s success.
By implementing these tips from seasoned entrepreneurs, you can navigate the challenges of your first year with confidence and set a solid foundation for future growth and success.
