Starting a Successful Business - Ardmore Score

This article addresses the financial side of starting a small business, with an emphasis on cash flow.

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Ardmore Oklahoma (PRWEB) January 16, 2014

Starting a Successful Business

There are numerous costs associated with starting a business, and money doesn’t always flow in right away. Still, it’s essential that you get a positive cash flow as soon as possible. It doesn’t matter how great your product is, your start-up money will only get you so far. Even if you’re not meeting expenses, it’s important to the bottom line to have SOME money coming in.

Successful business owners have plans before they start to get cash flowing, and they also have a back-up plan if the money doesn’t come in as quickly as they would like.

Overestimate Expenses and Underestimate Revenue

This can make or break a start-up small business. When you overestimate your expenses and underestimate your revenue, you leave room to be pleasantly surprised - which is what you want. Doing the opposite will spell certain doom.

Find Ways to Keep Costs Low

Here’s a harsh reality: the cost of doing business is pretty much always increasing, and clients pretty much always hate paying more for your product or services. This is why it’s critical to continually be searching for new, innovative ways to keep costs low. This may actually end up being where you get most creative with your business, even though no one may notice except you. Still, it’s rewarding to keep your clients satisfied, while still bringing home a decent paycheck at the end of the day.

Develop a Plan to Close Sales

Once you’ve got a marketing plan, prospective sales should begin to come in. Make sure you have a plan to get those clients to say “yes”.

Enhance the Value of Your Product or Service

Once the “new” wears off from a product or service, clients will begin looking to negotiate. They will likely want discounts, which essentially takes money directly out of your pocket. Rather than giving out discounts left and right, explore ways to enhance the value of your product or service without raising the cost. Successful business owners know that it’s always better to raise the value of a product than to lower the cost.

AUTHOR BIO

The mission of SCORE is to help establish and make small businesses grow. We are a local chapter of a national non-profit organization, dedicated to providing small business owners with the help they need to get off the ground, grow, and achieve their goals. We have been doing this for nearly 50 years, through education and mentorship programs. Thanks to our network of over 11,000 volunteers nationwide, and the support of the U.S. Small Businesses Administration (SBA), we are able to provide free and confidential services. Contact SCORE at 580.223.7765 for an appointment.


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