Successfully navigating the first year of your business is crucial to remaining profitable with plenty of growth potential. Whether you’re running a local retail shop, a farmer’s market, or you’re building an international online brand for products and services, it’s important to know how to effectively and efficiently navigate your first year of business to guarantee ongoing success. The more immersed you become in the process of navigating business ownership, the easier it will be for you to make the necessary decisions to keep your company up and running for many years to come.
Establish important milestones and goals
During your first year of business, it’s important to set realistic expectations with adequate market research and revenue estimations. You will also want to consider potential challenges and obstacles you may face in terms of operations, hiring, financial obligations, and even inventory management. Keep the following in mind during your first year of developing a business strategy:
- Create a timeline: Creating a timeline for each quarter will help you set both short and long-term financial and branding goals, depending on your current market.
- Financial obligations: Consider which financial obligations you will be required to meet when ordering inventory, hiring employees, or maintaining your chosen commercial property. You will also need to consider legal fees along with taxes, payroll, and the assistance of business managers or CPAs as part of this initial calculation.
- Inventory management: Choosing the right inventory management platform can significantly streamline operations, especially if you stock physical products or if you’re managing an online eCommerce platform.
- Challenges and opportunities: Planning for potential challenges and opportunities you may encounter in the future will help prepare in advance with properly executed solutions.
Evaluate existing competition
Monitoring the sales, marketing campaigns, and activities of your existing competition is crucial when you’re new to an industry as a business owner. It is essential to monitor your market position routinely along with the competition you want to outperform. Immersing yourself in the world of your competitors can help inspire unique strategies and even new market opportunities that you previously did not know existed.
Track financials in-depth
Using the right financial management system is also vital as you navigate your first year of business. Working with a business manager, consultant, or CPA (Certified Public Accountant) will ensure you are profitable and paying all taxes or fees on time, depending on your current market and industry. In addition to tracking financial details, you will also need to consider risk management and contingency planning as important priorities. Proper insurance, contingency plans, and recovery plans can alleviate stress while protecting the investments you have made in your business.
Abide by local regulations, permit requirements, and zoning laws
Abiding by regulatory and legal requirements is also imperative for a business owner. Comply with zoning laws and industry regulations, and be sure to obtain licenses and permits as necessary. You will also need to remain informed about any industry changes or new environmental regulations and laws that may impact your business and its operations at any time. Protecting your property and ensuring your business remains operational is much easier with the proper permits and licensing in place.
Incorporate winning marketing strategies
Marketing matters, whether you’re selling a specific accessory or you’re promoting a global brand. Even after launching your business initially, you will need to craft winning marketing strategies to garner more attention, expand your reach, and ultimately, generate more sales. Refining your marketing messaging, using multiple marketing channels (online and off), and consistently monitoring and tracking each campaign will provide the data and insight necessary to launch winning strategies well into the future.
Taking customer service seriously
Customer service is another cornerstone of running a successful business. Without customer service, you will likely find yourself receiving negative reviews and backlash across various channels online, through social media, and even throughout your local community. Incorporating customer service solutions and systems into your business model is one of the most important decisions you will need to make, especially when you are offering paid products or services.
Request feedback from customers and clients
Whether you’re launching new products, offering a unique service, or are interested in ideas for your next release, requesting feedback from customers and clients can go a long way. The more transparent and upfront you appear as a business or brand, the easier it will be for you to build trust between you and those who have a genuine interest in your company. Requesting feedback from existing and prospective customers is also a way to learn more about how others feel regarding your products, services, and the customer care you provide.
Use hiring tips when building a team
Incorporating the right hiring tips into your business plan can also help significantly in ensuring the most productive and communicative workplace possible, which is often desirable in most industries. You may want to incorporate the use of AI when searching for qualified candidates in an overcrowded market. Working together with your preferred CPA is also a way to determine if you should hire full-time employees or if hiring remote and contract workers is ideal for your current business setup. When building a team, you will also need to review financial demands and requirements, especially when paying taxes or even offering additional benefits, such as health insurance.
Work with risk management experts
Working alongside risk management experts is always recommended as an entrepreneur or even as a serial investor. Risk management experts and CPAs, or Certified Public Accountants, can help you determine potential risks and issues you may encounter in your industry, with existing competition, and even with your current generated profits each year. Ensuring proper insurance coverage and tax management solutions is also key to preventing unnecessary hassle or exuberant fees and fines from adding up.
When you’re prepared to take on potential challenges and obstacles that are likely to arise at some point as an entrepreneur, you can better navigate the often unpredictable waters of owning and operating any type of business today. The more familiar you are with what to expect in terms of costs, operations, and even hiring, the easier it will be for you to ensure the ongoing success of any business you’ve built and launched.
Megan Isola
