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6 Rules of Thumb to Follow for New Businesses

Starting a new business is bold and brave but can also be a little scary at times. You are venturing into new territory and putting yourself and your belongings on the line to follow your dreams and put faith in what you think will succeed. Although we could explain on a very complex legal platform how to optimize your success, we’ve kept things simple for your benefit. Here’s a short list of a few business practices to consider following that may have gotten lost in all of the detailed documents. These rules of thumb may not hold up your entire business but they will certainly help things move along.

1. Make sure your manufacturing costs are far lower than the price you are selling.

This seems like such a simple rule, however it is often broken- sometimes even by large companies like Tesla. Some ideas are fantastic, but cannot be realistic unless you have a fantastic way of manufacturing that product or service for a low overhead cost. The benefit of finding a low overhead cost is to maximize profits when you begin to sell that product or service to the public. Chances are projected manufacturing costs may increase slightly when you begin to actually manufacture. You don’t want to be so attached to your product or service that you’re willing to sacrifice cost just to have it put on the market.

2. Social media and the internet are your best friends.

If you are a more mature entrepreneur or you are someone who is not as well versed in the social media universe, you need to educate yourself. Social media is one of the best and most useful marketing tools in today’s market and there is not a single business that shouldn’t be utilizing these free platforms. Regardless what your product is or the kind of service you’re providing things like Yelp and Google Maps can help your business be found to the public while social media apps like Facebook, Instagram and Twitter can establish brand recognition or a brand personality.

3. Marketing holds more importance than you think.

Marketing your product or service is extremely important. It doesn’t matter how amazing your product is, if it never reaches the proper audience. Marketing should hold a great deal of importance when allocating your budget and when planning the calendar for your business. Make sure to partner with the right brands, advertise on smart platforms and utilize as much free marketing as possible.

4. Identify your brand and stick to it.

From the beginning stages, work to create a brand identity. Establishing a brand identity will not only create brand recognition amongst customers, but will also help to shape the company and guide it through any potential changes or downfalls.

5. Double whatever your projected expenses are.

Our attorneys can help you when it comes to the financials and figuring out where the money should be allocated, but it’s always smart to take your projected expenses and double them. There will always be unexpected costs, and it’s much better to overcompensate and have left over money, than not have enough.

6. You will not always experience success first.

Starting a business is challenging and time consuming. Success will not always come immediately or on the first try. Sometimes it takes time and dedication, but ethical business practices and smart planning will help get you one step closer!

 

Our attorneys will be there for your every step of the way. We can help with the complicated and more detailed business practices if you are able to follow the simple ones. For more information on our firm or for more tips and advice for new businesses get in touch with Von Esch today!