Rome Wasn’t Built In A Day – Your Business Won’t Be Either
How can you afford to live if you’re not drawing a wage?
It’s a good question – a question that many people should seek to address before starting their business because if they did, their business would perhaps be in with a much better chance of survival. When I started my businesses, I started them both at the same time; one of them is an online store, the other is a business providing services locally. Luckily the local services business was easy to setup up with zero investment – a few days of cold calling and knocking on doors was all that was needed to start drawing in my first few customers. The services business was in effect what paid my wages – my online store was more of an investment.
The reality for most people is that they won’t be lucky enough to start a services business that they can live off from the outset – most people tend to stick to their current employment, or take a part-time job to support themselves during the infancy of their venture. Realising that you are almost certain to make a loss when your business is new is crucial – having plans in place to ensure you don’t run out of money to live off is also very important.
How long before my business turns a profit?
It’s impossible to say how long it will take for any business to turn a profit – if you’re planning on growing your business as fast as possible then the reality could be that you don’t make a profit for a very long time. Perhaps the most sensible thing to do is to find the balance between profit and growth – where you’re not reinvesting all of the money that you’re making, but you’re also giving your company every opportunity to expand.
You won’t know exactly when your business is going to turn a profit – but if you have a realistic business plan drawn up then you should have some rough idea of when a profit will be seen. For some people making a profit doesn’t matter – but the thing to remember is that if you’re ever going to look at selling your business, the companies that sell are the ones that make money!
Be patient – have a backup plan!
When it comes to business nothing is guaranteed. Whilst your market isn’t likely to disappear overnight, it’s always a possibility. Supply problems, technical issues, and even postal strikes are all factors that should never be overlooked – if they catch you off guard your business may never recover. Take things nice and slowly, reinvest as much money as possible into your business – bring in as many new products as possible at every opportunity. In the early stages of business profit really isn’t a big factor – having the foresight and the vision to realize that future success will hinge on your early decisions is crucial – so make the right choices.