Approximately 543,000 new businesses are started every month according to Forbes. “7 out of 10 new businesses survive at least 2 years, half at least 5 years, a third at least 10 years, and a quarter stay in business 15 years or more.” It goes without saying that starting a new business venture is risky and often new business owners don’t know where to start. Here are 3 things you should think about when starting a new business.
Cheaper is Not Synonymous With Better
Starting a new business can be financially strapping. Looking for the best price when you are buying products/services may seem like a good idea, but only if you know those products/services are going to meet your needs (ALL your needs). While I do encourage the practice of shopping around, you need to know when you should save your money and when you should spend a little more to get what you need. I have been a victim of the cheap price tag and in the end I spent more money (and time) trying to replace that cheap item with something that actually works. Like I said, know when you need spend the extra dollar to get what you need.
Pick a Bank You Trust
Congratulations, you've decided to start your own business! Now it is time to pick a banking partner, someone you can trust with your money, someone who will aid your business growth and livelihood.
Things to be mindful of when comparing banks are:
- Line of services offered
- Interest rates for loans
- Charge(s) for maintaining your account
- The bank’s reputation.
Do your due diligence when searching for banks, ask local business owners who they use and find out why. Picking the right bank for your business will either aid in the business’ success, or failure.
Make Informed Hiring Decisions
Assuming you are starting a business that requires more than just yourself to run it, you will need to hire a staff. If you’ve never aided in the hiring process before it can be intimidating to know where to start. My suggestion is to first think about exactly who you need to help you get your business off the ground. Do not hire more than you need to, this will only slow down your growth and cut into your profits (if there are any profits to begin with) so start lean.
Hiring the right person is more than having a gut feeling. Before you bring candidates into the interview make sure to have a structured process so you can easily compare individuals and find who is best for the position. Unstructured interviews typically end up in hiring managers picking who they got along with best, rather than who is the best fit for the job. Structure interviews allow the hirer to compare candidates fairly.
If you are starting a new business and would like more tools to succeed, please start by downloading the interview template below.