How to Start Your Business - 10 Week Challenge
As a new entrepreneur, you dream about all the things going right. At the same time, do not forget to consider what should you do if things do not turn out as expected. In most businesses, that is what usually happens.
Though the activity seems pessimistic, as an entrepreneur, you have better chances of success if you are better prepared for things going slower than expected. In any business, one thing or another will go wrong. If you spend enough time thinking of such cases, the difficulty will only seem like a pinch.
Questions to prepare for
Here are a few questions to help you prepare better for tough times ahead. The questions below provide a reference for the questions you must ask yourself. They are in no way comprehensive enough for all businesses. This week apply some thought on what circumstances can choke your business and how can you premeditate some solutions.
- What if the initial set up takes longer than expected? Do you have buffer cash to sustain?
- What if you face a delay in the initial revenue to come? Can you handle the monthly expenses in the meantime?
- What if the revenue is lesser and slower than expected? Are you ready to face a delayed break-even?
- What if your most important employee leaves? Can somebody else fill his shoes or can you find a replacement to keep the business running?
- What if you face an emergency? Do you have the necessary insurance?
Think long and hard for such bottlenecks in your business. These cases seem rare at the outset, but ignoring them can lead to demise of your business. Better safe than sorry.
Things to remember
Keep aside additional cash to account for emergencies and unforeseen circumstances. A good benchmark is to hold a buffer of 3-6 months of monthly expense cost as a buffer.