Surviving your first five years in business is possible.

The first few years of business are tough. Regardless of the industry, it’s in or the world’s condition. But, there are a few common traits we see in successful people. These owners have determination, a long-term plan, financial organization, and a willingness to pivot.

We’ve analyzed these traits and come up with our top 5 for surviving the first five years below.

1. Set-Up a Long-Term Plan

Many owners start a company and seek instant gratification or profit.  But, businesses can’t survive with this short-term mindset

The first two years of opening a company are especially difficult. The harsh reality is that owners should actually expect to lose money in these years.

After all, opening a company costs money – there are hiring fees, equipment, office space, software, branding, and more that you’ll have to invest in. Therefore, persistence and a long-term goal is key

2. Focus on Networking

Businesses won’t succeed if no one knows about them. So, it’s your job to get the word out.

This means investing in some hardcore networking. Whether it using social media, in-person meetings, promotional events, or online forums; you have to make people aware.

Create a logo, website, and social media presence so people not familiar can easily find you. You’ll want to establish the company as a brand and make it seem legitimate to potential clients.

Whether your target is another business, or the public establish an ‘elevator pitch’ about it. This means summarizing your business in a few short sentences. It should be simple enough that people can remember what you, and what your company is all about.

3. Establish Good Credit

Surviving business is impossible without good credit. That’s why we suggest establishing a good credit way before you launch.

Meet with a financial advisor, like us at A.P Accounting and Tax Services log before you open. This can help you gauge your financial status and it means for the future.

4. Manage your Cash Flow

Before you begin a business, we suggest putting money into separate accounts. One for personal and one for business.

In the personal, we also highly recommend having enough set aside to survive the first year without being paid on a steady salary. This will prevent you from missing payments, being charged interest, and having to deal with creditors.

Once open, you’ll need to keep detailed receipts of all your expenses. No matter how small or big your transactions are, this is some of the most important information you’ll need to succeed.

To make this process easier, consider automating it and shifting it to an online platform. This can save you time and energy from having to manually upload each one.

Finally, we recommend monitoring your accounts regularly. Set time aside (especially in the first few years) to review your accounts. This can catch things like overspending, defaults, or high-interest fees that cost you money.

5. Be Open to Change

Businesses are constantly evolving. Especially when they’re trying to survive the first five years. But, one of the things that can help you succeed is being open to change.

Once open, gather as much data as possible on your clients. This will help you better understand them and learn what’s working or not.

For example, you might have thought that you would generate more revenue online. However, after the first year of analyzing sales, you realize you’re getting more from in person. This means a stronger focus on your in-person meetings is needed.

Ultimately, surviving business is hard. Especially in the first few years. But, with a strong financial plan, determination, and willingness to pivot you can succeed. For advice or a free consultation, call us today at 407-328-5001.

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