In the early days of any business, you have the opportunity to set a foundation for what’s to come. The decisions you make now will impact your company well into the future. Sometimes, it can be tough to know which steps are right for your startup. But there are some early decisions that you can make to manage your business that will help carry you into the future. Here are some tried-and-true tips for managing a new business:
Implement Quality HR Practices From the Start
Before you start hiring a sales and marketing team, you need to lay the foundation for what your HR policies and practices will look like. The first step in building a successful company is hiring the right people. You need to make sure that you are treating people fairly and setting clear expectations, which will help them know what they should be doing, how they should do it, and when they should do it.
You need to offer competitive salaries and benefits to attract the right talent. This may mean offering equity in the company early on for staff who start with you. It also requires having the right human resources services that support your business.
Don’t Overspend on Advertising
One of the most important decisions you will make as a new startup is how to advertise your product or service. Advertising costs money, and it’s easy to spend too much on it if you’re not careful. Be strategic in what advertising spots you pay for. Whether you are using Google ads or you want to leverage social media, set a budget, usually as a percentage of total sales that you want to spend on ads. Don’t forget that you’ll also need to pay an expert to manage them.
Get the Best Out of What You Have
As a startup, you have limited resources. You may not be able to afford to hire the most experienced professionals in your field and that’s okay. Use what you have wisely and don’t be afraid to ask for help from people who know more than you or leverage a freelancer to help with certain jobs. You may even be able to outsource some tasks to free up your plate to do strategic work.
Set Your Expectations High
It’s important to have big goals that you are working toward as a business. Set your expectations high, but be flexible in how you get there. It’s easy to get caught up in the excitement of what you want to achieve but be careful not to overextend yourself in the beginning stages of your business. Break each goal down into manageable chunks and regularly check in to determine your progress toward these goals.
Create a Realistic Budget for Your Startup
Budgeting is something that gets a lot of new businesses in hot water. It’s important to create a realistic budget for your startup and one that is flexible enough to deal with unexpected expenses. You’ll need to include salaries, benefits, leases, cost of goods, marketing, and more in your startup costs.
Invest in Customer Relationships
They say it’s cheaper to keep a customer than to get a new one. One of the best ways for startups to grow their business is by working with existing customers rather than solely trying to find new ones. There are several reasons why this is a good strategy. Existing customers are more likely to buy again. They are more likely to tell their friends. And they are more apt to leave positive reviews as long as you make the experience beneficial to them. Because there is already trust established, you can more easily share about new products that these customers can get excited about.
Use a Business Plan
Planning is essential for new startups. You want to build a future, but you need to know where to start. A good business plan will help you lay the groundwork necessary to help you achieve your business goals. Using this tool can even help you decide on the right direction to go in because you will have a focused mission and vision to refer back to.
Conclusion
Managing a startup is a daunting task. These tips should help you manage your business more effectively when you are just starting out. Remember, there’s no such thing as an easy road to success. The people who succeed work hard and have a plan.
