There are many entrepreneurs among us. We all start with plenty of dreams but majority of the startups loose power midway and crash. Two of the main reasons behind this are lack / fading off of passion and absence of knowledge for growth. Startups are similar to plants. They need to grow bigger so that stakeholders would show interest in it. For the business to grow, the founder should not loose passion. Our week’s blog suggests best practices in running a startup successfully.
Keep accurate and timely accounting records
It is very important to know financial position of the company. It is vital for the the company to have the very latest statements in hand when making strategic decisions as it will indicate the cash flow issues the company is facing. This in return will provide you with ample time to prepare for any shortages or plan to invest the surpluses.
Setup a policy for delinquent payers
Small businesses should always be focused on collections. It is advisable to collect the payments at the time of sale. However in certain cases this is not possible. In such situations it is advisable to make a notation in the invoice stating that “payment is expected on invoice receipt.” Provide alternative payment method such as credit card payments or online payments to speed up the collection process.
Consider outsourcing key functions to experts
The startups should focus on the core business activity rather than looking at other activities of the business. For example an IT company should focus on software development or hardware sale rather spending much of their time on accounting or HR functions. These secondary functions could be outsourced to experts of that field. This will take the burden off from the team and improve productivity.
Think about the big picture
Look at the bigger picture of the business and slow down your burn out rate. Start early and avoid getting stuck in social media. Keep a control of personal social media activities or any activities that will not yield anything in favour of your start up.
Don’t waste time doing useless work
Avoid unproductive activities. It is easy for start ups to get carried away with unproductive work as there is no one above to control. Avoid developing new products or services that will never attract the customers. Instead focus more on the work tat will yield money.
Don’t wait on answers from other companies or clients
Start ups are always put on hold by bigger companies. There may be vital approval that is required to continue with the work but it might be taking lot of time. In such case, it is ideal to put those activities in the background for a while and proceed with other work. This way you could save time.
Invest your time
Investing time is the same way one will invest money. Both are valuable. Hence identified the more productive tasks and assign more time on those. Focus more on activities that will cut down time in the future and invest time on developing the same, further.
Don’t cheap out on products that could help you be more productive
There are certain expenses which are optional yet will help you save time and effort. Never be too stingy to spend on those. For example if a business application is going to cost you LKR. 100,000 but will save time of your staff, invest on it. The saved time could be spent on other strategic activities of the company.
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