Entrepreneurs know that starting a business takes a tremendous amount of time and energy. Most entrepreneurs start a business that they are passionate about. This passion is very helpful as the business will demand most of your time. Passion and enthusiasm are important to starting a new business but keep these suggestions in mind to increase your chances of success.
- Have a Business Plan. Most businesses owners spend months or even years planning to start their business. This is no substitute for a carefully written business plan. Be sure to include a detailed cash flow statement to make sure you have enough start up capital to survive until your company is making money. When you are writing this plan you want to plan for everything taking longer than expected.
- Keep your day Job. It can take months or even years before your new company is generating enough cash to stand on its own. Having a salary takes huge pressure off you and your company.
- Arrange Financing for your New Business. Especially during the start up phase when cash flow can be very slow it will be beneficial to have financing in place. This might be from friends and family. Factoring companies offer cash flow for companies that sell B to B. American Receivable can be a great solution since they make credit decisions based on your customers credit strength, not yours.
- Don’t be the Lone Ranger. You may want to consider having a partner. A partner can bring money, and enthusiasm to your new company. If you feel a partnership is not for you, there are business coaches and peer boards that can provide valuable insight into the challenges you will meet.
- Build your Customer Base. Use social media to get the message out that your new business is starting soon. It’s paying customers that will be sign that your business is successful. Do everything you can promote your business and listen to the feedback you get to refine your business.
44 years ago, American Receivable opened its doors for the first time. The hard learned lessons those first years are still remembered to this day. Being truthful and making certain that our factoring service was helping each client succeed has always been our foundation. Fill out our Streamlined Application or call us today to find out how American Receivable can help your company go from a start up to successful profitable business.