If you recently started a business of your own, your challenge now is to make your business as successful as possible. To improve your chances for success, try to avoid some of the common deceptions that snare new companies.
Three Most Common Traps Against New Companies
1. Troubles with Cash Flow. If you actually run out of cash, that’s a disaster. But a business can also suffer if it’s chronically short of cash or if cash flow is unpredictable. A written cash flow projection can help you spot potential problems and take corrective action before it’s too late. If you aren’t able to prepare an accurate cash flow projection on your own, ask your accountant. It may be one of the best investments your business will ever make.
2. Difficulty Managing Growth. A growing business might not seem like a problem, but many companies stumble as they get larger. While you’re managing today’s business, it’s important to keep an eye on where you’re heading. If it looks like you’re going to need additional capital, employees, or office space down the road, put the plans in motion as soon as possible.
3. Failing to Keep in Touch. In today’s economy, your markets, your competitors, and the needs of your customers can change overnight. Keep up with the news of your industry through trade publications, the Internet, and by attending conferences or conventions. Scour your market for new competitors. Never stop paying attention to your customers’ concerns.
A good way to get customer feedback is simply to ask how your business is doing, either through face-to-face meetings or customer satisfaction surveys. Don’t overreact to negative comments, but do try to identify real problems and take appropriate action.