Didn’t Break Even After The First Year? Do These 5 Things
Some encouragement for the early entrepreneur
You did the best business plan ever. You took all necessary precaution. You did break-even analysis, but it’s been one year already, and you didn’t make a profit. How come? What next?
If we told you not to worry, that’d actually be worrisome (the irony huh?). So instead of telling you not to worry, how about we tell you a little bit about how to fix it?
- How Low Can You Go?
And yes, just like the game of limbo, what’s the minimum amount of resources you need, that can float your company? Keep your expenses low. You can try our app, REACH that helps you do just that.
You better be ready!
2. Hyperactivity is NOT Productivity
How much of your “busyness” is actually moving the company forward. Going forward, mind how you spend your energy. Don't be moving sideways when you should be moving forward.
3. Feedback Is King
Sales! sales! sales! It’s a key but isn't the only key. You forget that you’re selling to people like you, and focus all on sales. You need to talk to your customers. Look out for constructive criticism that could increase repeat buying, and even bring new customers from testimonials.
Waiting for feedback like…
4. Build Your Network
The more people you know, the better. Be respectful of people’s time, but also fearless in reaching out for meetings. When you meet, ask questions, give others opportunities to talk about themselves, always pick up the tab, and even send a follow-up thank you, on top.
Golden rule in networking: The more you give, the more people want to give back.
5. Make More Room
Many businesses need more than a year to reach profitability. You’ve crossed it but it’s not to late to rearrange it all. One of the best ways to last beyond the year mark is to recognize and plan for the fact that it may realistically take 18–24 months for your business to get off the ground.
Huddle up with your team and make it work!
So, my fellow doers, launching a business is indeed risky and stressful, but more and more fail in the first year. The fact that you’re reading this alone, means you’re not ready to give up. So don’t be afraid to take the next steps but be conservative with your spending, measure, adapt, adapt some more and then adapt again.
And while you’re at it, feel free to check out our REACH app at www.findreach.com