Posted by: Roni Deutch Staff | January 21, 2009

8 Tips to Make your 1st Year as a Business Owner More Profitable

The first year of running a small business is usually the most difficult. Luckily, there are online resources where you can see what mistakes others have made in their first year, and what you can do to improve yours. To help you pave a successful path for your business, we have put together the following tips help to make your first year in business more profitable.

1. Budget Everything

When it comes to starting a business, nothing goes faster than money. Before you even begin to purchase anything, you will need to sit down and make a budget plan for the entire year. This may seem like a lot, but you may be surprised by how many expenses come with starting your own business. If it gets to be too much, you can always get help from a bookkeeper.

2. Stay on your Taxes

Taxes are confusing for everyone. Unfortunately, they are even more confusing when you are filing for your business. It is easy to get misled or confused about business tax filing. To be safe, hire a tax professional right away and get their advice on the best way for you to keep up on your taxes for business. You also want to make sure to keep all of your receipts organized to save time when you estimate your quarterly payments.

3. Find your Market

Even if it takes trial and error, do everything you can to find and penetrate your core market. You will not always find it right away, and you may lose some money on the path. However, in the long run, knowing your target customer is a key to success.

4. Have a Plan

In addition to having a full budget written out, it is also helpful to have plans and goals for the year written out as well. It can be as informal as a list of goals on the back of a napkin. Alternatively, you could put together a vision board with specific goals. Either way, having a set of goals, and a plan to achieve them, is a great foundation for a new business.

5. Promote the Pros

Depending on how fast business grows, you may need to hire full time employees soon after opening. When you do begin hiring employees, keep an eye on which ones are your superstars. These will be the individuals you want to grow with your company, and should be compensated over time with promotions and pats on the back.

6. Dealing with Problem Clients

New business owners are often faced with the dilemma of the “problem client”. For a new business owner, it is neither smart nor easy to turn away money. However, if you have a client that is constantly low-balling you and calling your for unneeded assistance, you may have to reconsider. The best rule of thumb for unruly clients is to keep them until they are keeping you from other work that you could be profiting from.

7. Stress Management

One thing is for sure, running a business is very stressful. Make sure you have time set aside every week to relax and try not to think about things at the office. Dealing with stress well is a key factor to succeeding, and will make your business run much more smoothly.

8. Track Advertising

Keeping good track of your advertising is a must during your first year in business, and every year for that matter. If you are taking advantage of online marketing, be sure to see which ads are generating leads and why. The same goes for other ads, except it will be more difficult to track. Try tracking ads by asking clients where and how they heard of your services, and writing down every response.

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Responses

  1. What a great set of simple to follow instructions for helping your franchise to succeed. We can help with the advertising tracking. Create your plan, use AdSymetrix to measure your plans effectiveness and make adjustments as needed. Using this process you can save money and improve your bottomline by only marketing where you get results.


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