Starting a small business is no easy work, and in a tough economic times or during a crisis, it can be even harder.
This is due to the fact that when credit markets are tight, it can be hard to get access to financing.
That why it’s crucial for small business start up to master their business plans ( my infographic below shows you the steps to a successful business plan).
In other words, if there’s a need to access credit for start up funds, there’s the need to understand the cash projections and the bottom line: how much money are needed to put into the business, how much will customers be charged to meet operating costs and, hopefully, what’s needed to bring a profit.
The tips highlighted below can help the business building process in a difficult economy.
Before applying for a loan, asking professional advisors to review your business plan to make sure not anything is overlooked or some critical info are missing or inaccurate assumptions have been made.
In addition to securing financing for the new enterprise, is worth to set a financial back-up plan both for the business and personal finances if the venture fail to hit initial revenue projections.
Starting a new business when the economy is on the downturn takes creativity and ingenuity. Marketing is vital to getting ahead of the game and competitors.
From the business plan let’s really look at the marketing components. What exactly is the business going to sell, who are the targeted customers, how the products or services will be priced and what is the plan for promoting the business.
It is proven that in a downturn economy there a better chance of succeeding by thinking niche.
Looking closely at the original customer base to come up with smaller segments to market the offer even more strategically.
During the initial process and in the promotional/ start up phase is important to keep a close eye on the competition. Doing ongoing competitive analysis and look at what other providers are doing and what marketing techniques they’re using to build their business.
Are competitors tweaking the product? Lowering the price? Using creative promotional tactics? There’s the need to know where competitors are so the strategy can help differentiate and gain market share.
Starting small with an expansion plan already set up
Managing expectations and expenses by starting as small as possible, planning to expand when business reach is a steady pace.
Constantly reviewing the business plan and reconsider what is needed to start.
Technology is an Advantage
Technology can provide with numerous ways to save money and increase profits.
A lot of traditional operation can be executed in a very efficient way using the digital platform, social media and marketing tools.
Ideas for Lowering Costs
A gloomy economy can actually disguise some great ways to save money.
There are unique benefits associated with starting a business in a tough economy. Thinking strategically and take advantage of every opportunity to minimize costs while maximizing the value you add for customers,can build a foundation for long-lasting business.