How to build a safety net for business:
Want to become your own boss and start your own business? It is no rocket science however you need to plan right and take correct steps to reach success. While arranging finance is not the only biggest challenge for starting a business as well as other factors which highly depends on business model. To avoid serious mistakes and loss below are few safety nets that will helpful for you before starting business.
Hire a consultant
An expert advisor is one who allows you to take control of your business’s path, hiring consultant will not only save cost but the time which you spend in performing tasks that are not your core abilities. Dealing through professionals can help you avoid costly business mistakes which can’t be revertable all the time and all your complex tasks can be taken care of quickly and saving you from the pain of going through tedious and unnecessary rites of passage. Professional advisor can facilitate effective time management which will be an advantage to make the processes result oriented. You can see the clear difference how professional advisory as a true life line for business as it cost you bit at initial level but consider it as an investment.
Testing / prototyping
It is advisable to do a market testing before starting the business. If it’s a physical product then you can make samples or prototypes and give it to people to get their feedback. At this point try to reach out to people other than family and friends to provide feedback which will help you to refine the product or service before you launch in the market. They can highlight on aspects that you may fail to see and share ideas and perspectives that can help you in business growth.
Finance from family & friends
Borrowing money from friends or families is help full for startups. Getting loans from bank and investors can get difficult due to compliance and other legal formalities whereas family and friends believe in your dreams and can help you with the startup with no or minimum interest rate.
Find reliable associates and outsource work
It is also recommended that, initially you can outsource the work to your associates which can reduced the many fixed expenses. Once you have a good client base or enough revenue generation take place, then you can slowly start expanding your business.
Funds backup
When starting a business you should always have a backup of emergency funds. The income may not start from the first month of the business, so there should be adequate amount of finance to support you in the initial months. Your savings would matter a lot in the initial phase.
Commercial partnership
Marketing cost is consuming the large part of finance resource but playing very important role in revenue generation. Alternatively, Referral attracts actual customers who are more likely to make use our offerings, which allows businesses to see a longer period of revenue increase as well as its very cost effective for startup. Statistically, business with good referral collaboration have seen 86% revenue increase during the last two years.
Having a creative idea is the first step to a successful startup, but you also need to invest in establishing a true vision for your business, and foremost securing yourself before you take the plunge. This blog written by Ms. Nirmala (Business Advisor) at Flyingcolour Business Setup, Accounting & VAT Services in Dubai and across UAE. Feel free to call for a quality consultation. Please send inquiry to info[at]flyingcolour[dot]com or or call +971 4 4542366.
