Setting up a new business is tough, with an estimated 50% of businesses failing to survive three years.

The reasons businesses fail are varied - from bad planning to spending money on the wrong things (trust me, a pair of Prada shoes/shiny new BMW will not help you win that new contract).

We’ve just passed the three year mark so we thought we’d share our top 8 tips to surviving the early stages of a new business.

1. Take whatever help, advice, support and mentoring you can find
There are lots of business support ‘cowboys’ out there, but there are lots of small business owners (often in the same profession as you) who will share their experience and offer support when you need it. People often approach business with so much pride, blagging their way through, telling people how fantastically things are going, when in fact they are suffering difficult times that other people could help with. If someone offers you support or advice then take it, you can always choose to disregard it at a later date but don’t dismiss things that could help your business in the long term.

2. People take ages, I mean ages, to pay
I always pay my bills on time. I naively thought other people did. I was wrong. I hadn’t anticipated the time taken from instruction by a client to final payment and this was nearly my undoing in the first few months. Be prepared for people not to pay you. Don’t even think about the money until you have it in your hand. I have no shame when it comes to chasing people for payment and it is one area of business where you can’t afford to be shy - cashflow problems can stop a fledgling business in its tracks.

3. Don’t spend a fortune on marketing
When I started I had no money for marketing or advertising so I used some old fashioned marketing methods - getting off my backside and talking to people. Do you know what? It worked. We’re passionate about our business and this comes across when we talk to people. There are many low cost ways of promoting your business: sending letters, calling people, writing articles, looking for PR opportunities, building partnerships and networking. Don’t start from the premise that you have to spend a lot of money to build your business.

4. Trust your instinct and instinctively find people you can trust
You will come across some dodgy characters in the world of business - if your instinct tells you something isn’t right then you are probably right. Take recommendations from people you trust. If you are sourcing services such as accountancy then it is vital you implicitly trust that person - they are dealing with the foundation of your business (your cash!). So many new business people are scared to ask questions or challenge service providers. Have the courage to ask questions and point out things you feel aren’t right. Any professional will be happy to answer every question you have.

5. Doing what you love makes it all worthwhile
Both my partner, Rowena, and I wake up some morning and can’t believe we get paid to do what we love. That makes it really easy to promote what we do. Knowledge of your business and good planning are vital but passion makes it a more exciting prospect for a potential customer. If you are lucky, as we are, you end up with a bunch of fantastic clients who appreciate your talent.

6. There is no place for modesty in business
If someone asks you if you are good at what you do, then tell them you are great! Don’t hide your light under a bushel - talk to anyone and everyone about your business. Keep in mind that the person you are speaking to might not be a potential customer but you just never know who they might know. There will be days when you are struggling through quiet patches, wondering if you have the talent or tenacity to succeed. Give yourself a break and remember how great you are.

7. Keep the boring stuff in order
It is really important to keep things like invoicing, books and filing in check. Things have a habit of resurfacing months after you thought they had gone away and if you can’t get your hands on the information you need it will waste time and money. Make sure you keep your computer backed up - my laptop died on me for two weeks and I felt like my left arm had been chopped off.

8. Keep things in perspective
The first few years of a new business can easily become all consuming. Don’t forget you still have a family and friends, a life, a home, relationships. Although it is your baby you have to be prepared to take a step back, sometimes you just need some time away to refresh and come back to the business with renewed enthusiasm. Always remember there are other options - although it wouldn’t be easy you could go back to full time employment, start another business or diversify the one you have. Don’t be blinkered about your options - be prepared to look beyond the obvious.

 

© Nicola Cooper-Abbs. No content to be reproduced without written approval of the author.

Nicola Cooper-Abbs is a Copywriter and Editor, and Director of All Words Ltd.

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