Whatever the niche of your business, it is important to keep your eye out for the first signs of trouble. As a start-up, you have the hard task of establishing yourself in an already crowded market, and making sure your USPs (unique selling points) speak for themselves. But what are the signs of trouble to look for? And is there any way to bring your business back from the brink? In this article, we will discuss five signs your business is heading for trouble, and how you can salvage it:
No Business Plan
While it can be tempting to run headstrong into your business, all guns blazing, the chances of you pulling it off are slim. As time consuming as it may seem initially, setting out a business plan will help keep your company in check. A sound business plan should include realistic and well worked out figures, so you can have some idea of what you’re letting yourself in for.
You don’t need extensive marketing know-how to implement a tailored marketing strategy. If you’ve taken the time to identify a target audience, make sure you take your products to them. Simple but effective campaigns you can run include social media, direct mail and email marketing.
Lack of Diversity
As a fledgling business, you need to be seen to be actively promoting equality and diversity in the workplace. Employment tribunals are costly both in terms of finances and reputation so it’s important you actively work towards employing a diverse range of people. Employees should also be hardworking and dedicated to your business, right from the very beginning.
If you rely on sales, your location is key. Choosing a location based on the price of its rent may seem wise in managing your finances, but may not help you bag enough sales to make a profit. This is something to consider when writing up your business plan. If you’re really strapped for cash, an online-only business is always an option, depending on the nature of your business.
No Head For Finances
Poor financial planning can spell disaster for a start up business. Making sure you have money set aside to manage your monthly outgoings, tracking your expenses and chasing your invoices are just some of the ways you can help stop your business from sinking. If you really struggle, hiring an accountant or getting help from a friend will ultimately help you in the long run.
As the old saying goes, “fail to plan, and you plan to fail”. In order to help keep your start-up running through the first difficult few months, research is certainly key. Make sure you know exactly what you’re getting yourself in for, and you’re not blinded by dreams of overnight success.
360 Diversity offer tailored equality and diversity training to businesses across the UK. Visit their website today to see how it can be of benefit to your company.