How to protect against bankruptcy new enterprise
No one can be prepared to fail. Even those who seem to be ready for this can get a serious blow. Lack of money is the main obstacle to the development of almost any business, an obstacle that forces you to reconsider your ambitions.
According to Forbes, 80% of enterprises fail during the first 18 months of existence, 8 out of 10 startups do not live up to the second year.
If there is such statistics, then there must be ways to deal with failure. Business.com gives examples of some methods that will give a little confidence in their abilities and allow you to plan your business development without fear.
Find your niche first
No matter what you are creating – a product or service, it is important to do something that will help stand out from the crowd. Look at the market and think about what it lacks. This may be some useful service or product that you can not find. Most likely, not only you have a need for this. Having filled such emptiness, you will become not only unique, but also be able to get rid of competitors for a while.
If you have a good job, do not rush to quit. You need to have a stable income in order to build a business without fear. Without safety net, your project can roll down before there is any chance of success. You can work on turning your initiative into a profitable enterprise and, at the same time, realize yourself as a good employee.
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Successful businesses like Amazon, Apple, Google, and Hewlett Packard (HP) started working in the garage. Do not spend money on renting office space, if you can start working in one of the rooms at home, use the kitchen table or basement as a work area.
Do not hire employees
If you need help, hire temporary staff. Find an option that will save time and money, do not pay taxes and spend little on salaries. Maybe you can get help by offering your services in return.
Do not spend money on advertising
There are many ways to make yourself known and, at the same time, not to spend money on a large-scale advertising campaign. Create a video about your products or services and post it on the Internet, talk about yourself in social networks, send press releases to various media outlets, or create a blog that describes everything you do. You can use all this and not spend a single penny.
Do not spend money when you have a little
Cut down and get rid of all unnecessary expenses. Avoid daily visits to various cafes and, instead, make yourself a cup of coffee. More often, cook dinner yourself, and instead of going to the cinema, arrange with friends to watch interesting films at home. Saving on small daily, weekly and monthly expenses can help save some money for your business.
Minor things can be key when creating a business. Therefore, it is important to remember that in such a case there are no trifles, everything affects future success.