According to SBA reports, three of ten startups fail in their first two years of business. This can be a daunting statistic for new business owners who must not only focus on launching a successful practice but also closely monitor those early years of risk.
In her Entrepreneur.com column, The Daily Dose, author Carol Tice provides valuable tips in surviving a startup’s crucial first year. We share four here:
1. Talk to customers. In another column, Tice says that many startups doom themselves to failure when they fail to obtain customer feedback, so it’s no surprise that this tip is number one on her list. She explains that when you do this, “You’ll have the right offer, at the right price, in the right market.”
2. Keep expenses down. If you’re running a home tax and/or accounting practice, you may think it’s impossible to cut costs any more than you already have. I mean, you’re already saving rental payments in working from home—what more is there to cut? Consider looking into more streamlined phone and Internet plans, insurance packages, shipping and copying fees, etc.
3. Plan for problems. Like the old adage says, “When you fail to plan, you plan to fail.” If you don’t anticipate problems, you’re blindsided when they happen. However, if you can anticipate problems and develop a game plan for overcoming them, you’re much more likely to conquer them successfully when they show up (because, really, how many great life plans go off without a hitch?).
4. Analyze how it’s going. This is very important. You must take the time to really look at the numbers and see how your business is doing. If you uncover bad news, that doesn’t mean your business is doomed to failure; it doesn’t mean you can take the necessary action to make a course correction, increasing your chance for success.
It’s important that you always be observant of your business and its progress, especially in the first few years of its establishment. While you may feel too busy and overwhelmed to apply any of these tips, not doing so could ultimately result in the failure of your new practice.
Ensure Greater Success with Enhanced Service Offerings
When you offer the perfect combination of services (like accounting and tax preparation), you position your business for greater success. To ensure your practice’s longevity, consider adding tax service to your menu.
Professional Tax Preparer (PTP)
Many tax preparers make more money in the months leading up to the April 15 tax deadline than others make all year long! Since all individuals and businesses, small or large, are required to file taxes, tax preparation is a respected skill that will always be in demand. And many of your current clients would probably be happy to have you file their taxes as well as perform the standard accounting services you currently provide.
Also consider who your clients will trust to file their taxes. Countless individuals are scammed each year by people who claim to know what they’re doing. More and more are becoming weary of tax preparers without any credentials. The Tax Preparer Designation will put many of those individuals at ease, assuring them that you have been properly trained in tax preparation.
Secure your practice’s success by adding a professional designation to your name. Call Universal at 1-877-833-7909 to enroll now!
Tice, Carol. “5 Tips for Surviving Your Startup’s First Year.” 23 April 2012 Entrpreneur.com
Tice, Carol. “The One Simple Task That Will Help Your Startup Succeed.” 11 April 2012 Entrepreneur.com