We hate to stereotype, but it’s fair to say that it takes a particular type of person to embark on a business enterprise. The people who take the plunge here are very often risk takers. They’re passionate individuals who don’t let logic or bad success stats sway them away from their goals. And, for the most part, they’re individuals who aim for the sky. How else do they stand any chance of finding real success?
If you’ve approached your business in this way, then good for you. Your determination to always aim higher is likely what you got you to this stage in the first place. But, now that you’ve established your company a little, it might be time to bring things back to the ground. Sadly, the reality is that you need to start thinking about the short-term at some stage. Otherwise, your determined attitude could undo your efforts.
As strange as it sounds, always aiming for more may push your capabilities a little too far right now. But, how exactly can you strive for modest things when you’ve spent so long flying high?
Work with freelancers to start
Reaching the stage where you’re considering employment is incredibly exciting. In fact, this can feel very much like arriving at the stage you’ve always aimed towards. The trouble is, this can be the start of the end for a lot of people. Many entrepreneurs simply get carried away with employment, without thinking about the consequences. You may have enough in the bank this month to afford someone else’s salary, but things are still up in the air at this stage. It’s likely that your profits are still fluctuating a fair amount. As such, there’s no guarantee you can commit to an ongoing monthly wage. Even if you can manage that, many managers employ whole teams in the hope increased production will bring enough profit to cover salaries. Again, this would be a big mistake.
But, if employment isn’t the way forward, what can you do when production gets too much for you? The best option would be to work with freelancers for the time being. There are many individuals out there who work on a job to job basis. That means that you’ll be able to keep up with demand, without committing to ongoing payments. As long as you know you have enough in the bank to pay for one job at a time, you shouldn’t have any trouble here. What’s more, you can use the increased profit your freelancers bring to approach employment more realistically.
When it comes to commercial space, there’s always been a great debate between renting and buying. Obviously, buying has its benefits. For one lump sum, you’ll have a whole load of collateral for your company. What’s more, you won’t need to worry about making payments each month. But, that’s not to say this is all plain sailing. In fact, in the early stages, buying is a risky move. Even if you have the cash in hand, your unstable business could collapse and waste the investment. Instead, you’d be better putting that cash into other aspects of your company and holding off buying until you’re more established. You could always rent office space on a rolling contract for the time being. That way, you’ll never be more than one month out of pocket. What’s more, this would allow you to put your funds towards growing your business and boosting profits. Once that happens, you’ll be in a much better position to buy.
Modest deals instead of big ones
This step might confuse you most of all. Doesn’t every small business dream of getting that huge deal which boosts them into the big-time? Of course, they do. But, you should think twice before turning down a small deal so you can pursue a larger one. In truth, taking on orders they can’t fulfill is a mistake many business owners make at this stage. With your ‘sky is the limit’ thinking, you’re sure to see the money over the practicality. But, accepting an order and failing to meet it will ruin your reputation faster than anything. Instead, then, consider taking the smaller deals which offer less upfront profit. These are the real money makers in the long term. After all, you’re sure to get more orders if you do a good job. Fail to produce enough for that other company, and there’s no chance they’ll come back for more.