Your Business: Year One

Congratulations, you’ve started your own business. You must be very excited, and you’re right to be. This is, as a wise old Jedi once said, your first step into a larger world. Whether you’ve dived head first into your business, quit your day job and are now solely dependent on its income or have set your business up as a side-hustle along your day job (which you plan to gradually phase out) you are a pioneer, keeping the flame of entrepreneurship burning bright. We’re going to go ahead and assume that you’ve raised the capital to set up shop (digitally or physical) and are ready to start trading. If not, there’s plenty of great advice out there to help you do this including this article of our own. So, you’re staring down the barrel of your first year in business and you’re likely experiencing a range of different emotions; apprehension, nervousness, excitement. It feels like you’re tied to a bungee cord and getting ready to take that terrifying and thrilling leap into the unknown.
While many would have you believe that your first year in business is about survival (and in many ways it is), your first year is more about sowing the seeds and laying the foundations for sustainable and organic growth. After all, in today’s extremely fast paced and competitive environment few small businesses can afford to stay small. In your first year in business, it can feel like the future of your business stands on a knife edge, and one mistake could send it spiralling into bankruptcy. While it’s fair to say that you’re unlikely to turn amazing profits in your first year (which is why it’s important to keep your expectations realistic), you have ample opportunities to make a strong start to what will hopefully be a long and prosperous entrepreneurial career.
While there’s no proven map that’s guaranteed to let you navigate your first year optimally (if there were, everyone would be running a thriving business of their own), here are some things to keep in mind that will help you to navigate the common challenges and pitfalls that many face in their first year of trading…
Remember that your brand is more than just a logo
Building the brand is often one of the first aspects of entrepreneurs tackle with gusto. And who can blame them? It’s a fun and rewarding process. Before you can establish your brand, however, you need to formulate your mission statement. What will you do that marks you out as different to your competitors? What will you offer the world that nobody else can? Once you’ve crystalised this, work with a talented graphic designer to translate that mission statements into a logo and slogan that will resonate with people. Just remember that there’s more to a brand than a fancy logo and a catchy slogan. Your brand needs to be embodied in every facet of your business. This doesn’t just mean that the color scheme on the shop floor matched that of your logo (although that’s important too), it means that every interaction your customers have with you and your employees perfectly encapsulates your mission statement.  
This means that your employees need to live and breathe the same ideals as you. Train them regularly, brief them often, but most important of all, exude the passion and commitment that got you here in the first place.
Mastering the expense / investment ratio
Your first year in business will be something of a tightrope walk. Yes, you need to keep expenses down but you also need to invest enough in your business to be able to not only function optimally but provide the capacity for growth. It’s a fine line, but it’s one that every entrepreneur must master. Invest too much and your cash flow will solidify which could be the beginning of the end. Invest too little and it could cheapen your brand or limit productivity.
By rule of thumb, you want to make sure that you can do what you do as best you can on a scale that you’re comfortable with while building in the capacity to scale up as demand increases. This means that you can cut corners on the flashy bells and whistles, while ensuring that you invest in the right equipment. You can also save money by using appropriate financing solutions for your spending. For example, looking for equipment loans may be a good idea if you want to invest in quality equipment that will last you for years, yet you don’t want to risk tying up all of your assets in capital investments. This brings us to…
Keep the cash flow… flowing
Strong liquidity is essential to make sure that you pay your debts in a timely manner and are able to keep your operations running smoothly. Every now and then you may come across an opportunity that could increase your potential productivity, output or influx of new business. This may be the opportunity to move to a better located premises with better foot traffic. It could be a new piece of equipment that’s going at a bargain price. It could even be the use of a consultancy to help your business grow. Whatever that opportunity is, you don’t want your assets to be so tied up that you’re unable to capitalize on it.
Don’t be afraid to lean on your team
Entrepreneur burnout is real. In the early days you’ll likely feel the need to do everything yourself. After all, your business means a lot to you, and it’s only natural that you’ll want to be as hands on as possible. Unfortunately, however, the more you tie yourself up in micromanaging your workforce, the less free time you have to focus on the more strategic elements of running and growing your business, and the more you compromise the overall productivity of your workforce. Don’t be afraid to lean on your team. Train them and develop them and inspire the same passion in them that you have for your brand and you’ll be able to do your job with the peace of mind of knowing that they’re doing theirs.
Try to have fun!
Watching your business grow is like watching your children grow. You’re so busy making sure that they’re healthy and happy that you can miss out on some golden moments. As stressful and as difficult as it may be, try to have fun and appreciate what you have.