WHAT CAN I DO TO HELP MY BUSINESS SURVIVE THE FIRST YEAR?
If you know anything about business, then you know the first year is the hardest. Many businesses fail within the first year. There is a lot of burden placed upon you in those first 12 months as you try to build a customer base and carve a spot out for your business within the economy. While it is very tough, you have to focus on the fact that many businesses in Texas do make it past that first year. They know a few of the tricks of the trade that help them out.
Money reports that one of the biggest challenges of the first year of business is cash flow. You have invested everything in the business and that leaves your available cash low. You have to make sure you hold some cash in reserve for emergency expenses.
It is also a good idea to set a budget that has little waste and stick to it. Do not let yourself go outside the boundaries of your budget or you risk cash flow issues. Also, avoid using credit. Make sure that you do not wrack up a lot of debt since that can also tap out your available cash.
Furthermore, you need to make sure you take note of the ebbs and flows within your business. Every business has periods where sales are lower and periods where sales are higher. You should use this first year to get a preliminary idea of this process, so you can use that knowledge to plan for the coming years. This information is for education and is not legal advice.