Starting a new business can be scary and many small business owners are challenged to overcome the obstacles of finance and pricing to ensure a profit is returned at the end of the year. If you are starting a new small business this year, it is important to consider some key aspects of pricing and cost cutting techniques to ensure your business finances are protected as much as possible in the first year.
In the first year of your small business, one of the most important aspects of your business structure should be your pricing. To ensure your branding and your business are presenting the best image possible, it should be important that you avoid underpricing your products or services at all cost. Being the least expensive service or product does not mean you will get the best possible customers or the best possible return on your business investment. Therefore, price your business services accordingly, even overpricing if you need to until you have a chance to test the waters in your business vertical.
Another area of concern for many small business in the first year involves the use of print mailers. Because print media is wasting and falling behind to online media advertising, it is recommended that you avoid spending valuable dollars on print mailing and, instead, consider investing your first year business dollars into expenses that are more driven toward a global online market.
Keep in mind that your first year of business will be challenging in terms of time management. Because referrals and loyalty are what will make or break your bsuiness, be sure that you are not spreading your time over too many projects or services and try to focus on the few valued clients you have secured, especially if they will make additional referrals to your business. In the long term, this is how you will build your buisness and prosper into the second year.
Starting a new business can be overwhelming and for many buisness owners many mistakes are made in the first year. Following these tips and advice, you can garner a far better outcome to your business gains or losses as the first year of your business comes to an end. In practicing these techniques, you can overcome your hurdles in the first year and make the second year of your business start off ahead of your strategic business plan development.
Sources: Business Connections, January 2010, p. 15.