Starting up a business is a lot like owning a Tamagotchi. You begin with a tiny egg onscreen which you have to poke and prod to see how it develops. But as soon as the egg cracks, you start to have fun and see how far you can push the envelope.
Yet, almost inevitably, you end up pushing your wee Tamagotchi too far, feeding it too much, until it croaks it. There you are, staring at a set of pixels you nurtured, watching its wilting final bleep – and it’s all your fault.
It’s a situation that happens to businesses all the time. Like a perishing cyber critter, thousands of startups push the boat out too far and overstretch themselves. Soon, they’ve shut up shop for good – and all because they lacked patience.
Indeed, according to business website Fortune, 29 per cent of entrepreneurs believe they failed because their funds dried up. Without effective budgeting, they pushed themselves too far and folded.
If you’re planning on starting a business this is the outcome you should be avoiding. That’s why we’ve come up with a few ideal points to stop your business bubble bursting too soon.
Think big – employ small
Working from your home while you build up contacts? Then your best bet is to keep things small until you’ve got enough bucks to afford a quality assistant.
Find ways of maintaining your schedule yourself until your budget allows otherwise. If you’re really struggling, find family members or friends who’ll shoulder some of the responsibility gratis while you get your company on its feet.
Move on up – when you’re ready
The need to rent property for a business is not as necessary as it used to be, although is still vital in some fields. For instance, a medium-sized online retail company will need a large area to box up its deliveries.
However, when money comes rolling in, inquiring into commercial property to let could be your best option. Many companies that consign themselves to online-only ventures find that the anchor of an official retail outlet can help put their enterprise on the map.
For whatever reason, consumers still enjoy the tangibility of a brick and mortar outlet. But never rush – when you can afford a prime location, that’s the time to pounce.
Catch up with the competition
Unless you’re in an entirely obscure industry (in which case, enjoy not making any profits), you’re always going to have a lot of competition. So when is the time right to start biting at their heels?
Find out what your competition aren’t offering and fill the niche with cheaper alternatives. That way, you’ll corner a unique selling point in your field and leave them trailing in the dust.
The timing off all these is, of course, contingent to the health of your business. But every expansion in an enterprise is a leap into the unknown – just make sure you’ve calculated your leap to perfection.