Start-ups are full of chaos. Everything around is uncertain.
You know obstacles wait for you inroads ahead; have disappointments; bear many grueling talks, and often find yourself in helpless and challenging situations – that’s a start-up for you. But, what if we told you about a few practical tips which can work on and make your start-up live past 6 months? Won’t it be awesome? Well, look no further and keep reading!
The first few months of opening your own doors for business can be an overwhelming proposition for most new startups. But with some investment of time and energy and the proper planning, there are ways to make sure your startup not only survives but thrives during its first few months in business. Generally, these tips will help you avoid major pitfalls in getting your startup off the ground, which will help to save you time and money in the long run.
- Optimize Cash Management:
Small businesses live or die on cash, not profits. The single most important step for long-term survival of a web-design business is managing cash flow. A solid cash reserve for any unforeseen circumstances or emergency pivoting will make trying times less hectic and will help cushion any blows.
- Check on costs:
Along with managing the cash, one needs to keep a close check on the costs. The expenses and new investments during the initial few months should not be too high. For example, A web design company can hire employees on contract or seasonal basis instead of permanent basis which will help a lot in cutting additional costs.
- Customer Retention Tactics:
New projects from the same customers give your cash flow much advantage. Typically as per ProfitBoard’s analysis, a web design company’s 30% customers should give repeat businesses every year to sail comfortably. This reduces the burden of looking out for new customers, convincing them etc, which take a lot of budgets. Customer relationship is primal for getting repeating businesses from existing customers.
Customer relations should be maintained rock-solid since the beginning. One can develop a mailing list of the busy-season customers and issue a monthly email newsletter and for that, you can try mail chimp, constant contact etc. Keep your name in front of them so they remember you when they’re ready to buy. Customers should be the backbone of the business since the start so that they can stick to be the loyal customers even during the trying times.
- Attractive offers:
For the initial few months, the focus should be primarily on constant money coming in rather than maintaining huge profit margins. Offer attractive discounts and vouchers to the customers who shop from you in the offseason. For instance, you can offer complementary SEO assistance along with the web designing services in the initial few months which are usually slow for the business. Additional complimentary services will help you get more customers and will maintain your operational pace.
But always understand don’t over-spend your time and resources on giving something extra.
- Bring in more creativity:
Solving problem with creativity can solve issues with many possible resolutions. Creativity is the core part of any Startup. Otherwise, everything which is needed is already invented; we just need better ways of doing those things. So they can be more useful, time-saving and fun filled.
For example, A web design startup can focus on designing a website while recognizing the commercial needs of clients and understanding the role it can play in advertising and communications. It will give an extra edge to the services.
- Gear up for the future:
Utilize the initial few months to prepare yourself for the bloom. Train your web designers on updated scripts and new technologies. Make repairs or conduct maintenance on the facilities and systems. Provide training to your employees in sales and customer service. Attend industry seminars to improve your skills.
- Specialize in a vertical:
A vertical is when you sell your services to one specific industry. Many web design studios fear specializing in a vertical because it may involve turning down other projects, but taking a leap of faith is essential if you want to set your company up for success years into the future. Offering specialized services to a certain industry or a geography can take a web-design company extra miles instead of randomly picking up work.
- Build your service provider’s network:
A company that operates in a silo never scales. So tie-up and network with people/companies that can help you with writing content for your clients, doing SEO, extra graphic designer for logo etc work. This helps you afford any extra
- Keep systems in place to quickly go from discussion to deal.
Keep standard templates for everything ready. Be it non-disclosure agreement, Invoices, Estimates, contracts. We observed it delays your project by 5-6 days and wastes a lot of your time for which you won’t be paid any extra. If you need standard templates for these things, we have made a sample one for you to get started quickly. Request us one from your business email here.
- Deadlines, deadlines, deadlines
Always have a deadline for everything in place, understand your time is your money. The faster you’ll do the repeating task, the quicker will be your cash flow.
Need any further guidance or have questions. Shoot us those on the comment below.