3 MISTAKES TO BE AVOIDED WHILE STARTING UP YOUR BUSINESS

Around 80-90% new businesses in India fail in the ﬁrst year after their commencement. If you want to avoid this problem, read on…

Most of the businesses fail not only because of the lack of managerial skills or lack of power in the idea invested in the business not do they fail because of the market conditions. But they do fail because of the factors which can be controlled signiﬁcantly.

My ﬁrst and foremost advice is to keep cohesion in the founding of the team. It would be better to take time before the proper and eﬃcient team is formed to ensure that the bonding between the team members is kosher which would help the ﬁrm increasing its sales.
The second factor which really makes or breaks a company is managing the cash ﬂows. In the pursuit of growth of the business, the entrepreneurs may stretch very far to attract new customers and maintain their existing customers. In the process, they may even offer the terms which give them revenue visibility such as credit sales but no immediate cash ﬂows. In the accounting books or on paper the business may look robust, but however, the cash ﬂow position for working capital may go for a toss. So, plan your cash ﬂows and do not make the excess of cash outﬂow if less than cash inﬂow. To manage cash ﬂow eﬃciently, apply the following techniques such as cut the costs, ask your debtors to pay quickly, and delay the payment to your creditors.
My third and last advice is to put a great emphasis on putting at least basic systems in place. The system may evolve with time but it may make a great deal of thoughts which should also be making the ﬁrst framework. Designing the systems properly will add to the growth of the business by eliminating redundancies in the system. Then another preparing a system simple as to documenting the pricing strategy which may save an enormous amount of time and the efforts even if a single person is making pricing decisions.

While starting up any new business, we at Business Casa provide guidance to small entrepreneurs who wish to start a new business or who wish to expand their existing business through the help of expert professionals. For any clariﬁcations contact us at Business Casa.