While it may be a bit of an exaggeration to say that most new businesses don’t survive past the first two years, government data does show that seven out of 10 new employer firms last at least two years, with only half surviving for five years (source).
Statistics aside, there is no doubt that steering a fledgling business venture through the startup phase and the immediate years that follow is likely to be a huge test of entrepreneurial character.
Here are some strategies and tactics to consider as you struggle and stride through the first few years of entrepreneurialism.
Year 1
One of the first things start-ups learn is that very few things in business go quite to plan.
While there are many things you can do to take care of setting up your business (take for example these 10 Steps to Starting a Business) – you will always encounter the unexpected.
From un-forecasted demand that you can’t yet cope with; new tax laws that you had no idea applied to you; unreliable suppliers; unruly business partners; or clients that don’t pay on time – the unpredictable lurks around every corner.
And while you may not be able to predict the pendulum swings of running a business, you can prepare for them and this means having a plan and plenty of cash reserves.
A business plan is one of the most important tools in your business arsenal . Yet,