Setting up a business is not as easy as what other people think. You need to invest a lot of your time, effort, money and commitment to make sure that it becomes successful. But do you even wonder why a lot of start up business don’t make it past their first year? Sadly, a lot of these business owners suffer loss and they are unable to cope up with the demands of running the dad to day operations of their business. So here are some tips on how to help make your business survive on its first few years.
Keep your overhead expenses very low
Overhead expenses are the monthly bills or payments that you need to make in order for the business to operate on a daily basis. This includes your monthly rental, the salary of your employees , water, electric bills and other expenses that needs to be paid off. If your overhead is quite big, then you have to really push for bigger sales in order to be able to pay off your monthly dues. But if you think that you still cannot afford to rent a space and pay for a lot of employees then you can probably start running your business at the comfort of your home or look for a place that you think you can afford to pay on a monthly basis. Limit the number of staff that you should hire in order for you not to worry about paying their monthly salaries.
You need to keep your cash flow flowing on a daily basics
If you have customers that still owe you money, you may endorse their accounts to a debt collection agency or personally talk to them in order to collect any unpaid debt that will be useful in keeping the business afloat. If your business is still new then you need to be more aggressive when it comes to promoting your products and services to your present and future clients. You should also make sure that you are extending your operational hours in order to cater to as many customers as possible.
Be strict when it comes to payment options
We all know that not all customers are the same. Some of them are good when it comes to paying their bills and some of them are not. You can consult with professional collection services Brisbane to collect any outstanding amount that they owe. Also make sure that you and your people are able to set rules when it comes to accepting and collecting payments. As much as possible it’s easier to stick to cash and card payments only.