Creating a startup company from scratch takes an enormous amount of focus, time and energy. Business conditions can change rapidly, necessitating a flexible attitude and constant attention to the marketplace. A number of problems can arise that can put significant obstacles in the path of a new startup. Efficient resolution of these problems can help your business to grow and succeed.
Many new business owners underestimate the amount of money it takes to get their business through the early months before they establish a substantial cash flow. This mistake can hamper the ability to deal with those inevitable unexpected expenses that often arise from hiring, complying with local regulations and compiling an adequate inventory. Whatever figure you have decided you will need, add another 20 percent as a cushion to cover these additional costs.
Poor training prevents employees from providing the full information your customers need to make good decisions regarding your products or services. A bad experience with your employees can prevent customers from returning with future business and will create an impression of incompetence that will be difficult to overcome. This mistake has been the cause of many a startup’s demise.
Inadequate Order Fulfillment & Shipping
If your business is not properly organized to provide fast order fulfillment and shipping, you will have dissatisfied customers that go elsewhere to have their needs met. Ensure that your fulfillment process is done efficiently and with the least percentage of errors. Arrange for the best shipping methods for your customers’ needs so that delays are minimized. A specialist from Pack-All International recommends having a system in place for fulfillment, shipping and quality assurance before you even begin interacting with potential customers.
Not Utilizing Professionals for Consultations
Legal advice for determining patent infringement, avoiding employment problems and structuring your business for the best tax advantages are all important components of a startup business. Consulting with a certified public accountant can help you to set up your accounting to your advantage from the beginning to avoid unnecessary tax liabilities throughout the year. Other professionals who are experienced in issues related to your particular business can be extremely helpful in providing practical advice so that you can avoid serious mistakes.
These four issues among those that often present the greatest hazards for startup companies. If you attend to these matters fully, you have a good chance of taking your business to the next level of being well-established and stable.