Have you ever thought about starting your own business? Have you ever felt like you wanted to throw in the towel at your 9-to-5 job and become fully in control of your own financial destiny? Most people have the idea or the dream, but few actually take the plunge. Part of the reason is that it can be daunting and scary. But what “if” you did – jump in with both feet? Are you ready to control your own financial future?
The start-up stage for a new business is mostly about what business owners are bringing to the table: your ideas, your initial funding, your excitement, your outreach, your decision-making, and your tireless labor. You have a salable product or service. You have also identified your target demographic. Now your business is entering the next stage of growth, which is the survival phase. It’s often the most pivotal phase that will determine longevity.
At this important stage, it is time to start thinking about being financially self-sustainable. It means businesses should aim to handle their daily operations without needing outside help. The company has enough capital to run itself, so it doesn’t need to actively borrow money from banks or seek cash infusions from investors. This business is moving products and actively generating revenue. Your small business is selling enough to meet payroll, to keep the lights on, to cover the property taxes, and to meet other common business expenses.
4 Steps for Creating a Financially Self-Sustained Company
Your small business may be off to a good start, but to create a financially self-sustained company, you’ll need a plan. It takes workable systems, the right hires, and workers training so that your small business can run smoothly without your input. Some small business owners struggle to turn over the reigns and step away, but it’s a must if you don’t want your business to become stagnant and then slowly decline due to lack of growth and innovation. Stepping away will allow you to research and target new emerging markets and develop strategies for getting your foot in the door as a small business owner. It will free you up to design new products and work on new marketing strategies to help broaden your customer base.
- Now that you know what a financially self-sustaining business looks like, here are a few strategies that might help a small business owner to thrive during this stage of growth:
- Invest in professional legal and financial services early on. It’s expensive, but you can save money in the long run and protect your brand’s reputation by paying for expertise.
- Understand the ins and outs of your product or service, your brand identity, your current customer base, and the surrounding demographic that you’d like to convert into new customers.
- Hire the right people to work with you. Consider what qualities you’re looking for in management and throw yourself into recruiting the most talented people that you can afford. Either allow your new managers to hire the frontline workers, or do it yourself, but don’t rush it. Take your time to find employees who can do the job and fit into your company’s work culture. Recruiting the right talent will put you in the best position for scaling up your small business when it’s time.
Keep in mind that a financially self-sustaining business should be ready to adapt to change. We live in a fast-paced world; things can turn on a dime when the economy changes, public opinion changes, or your customer base changes. Therefore, the business must evolve and innovate as it adapts to the new market landscape and thrives.
Being financially self-sustaining is not just about funding your business….its about creating that security for yourself to be in charge of your own financial future through your business.