Building your business to reach the 10 million dollar benchmark can be very tricky, especially when you don’t have the needed experience. To succeed in your business, you should be aware of the landmines that could trip you up and avoid making critical mistakes that might make your company fail. In today’s podcast, Chris Joyce from Gusher and Stephen Halasnik from Financing Solutions discuss the landmines once you pass the business startup.
The Landmines Once You Passed the Business Startup Phase
Running a successful can be quite challenging, especially if you’re a first-time business owner with limited experience. Plus, it can be like walking through a field of land mines when building a company from scratch and aiming to reach the 10 million dollar benchmark.
In other words, typical mistakes can stymie your best efforts and, in a worst-case scenario, can make your company go under. If you intend to build a thriving company and successfully navigate the common challenges that beset small businesses, there are critical things you must be wary of from the outset.
When you have the foresight of what might happen down the line when piloting your business after the startup phase, chances are that it will grow faster and become sustainable and profitable. Below are the landmines you must be wary of once your company grows passed the startup phase.
Partner Abandonment Issue
The partnership abandonment issue is a landmine that many small businesses regularly face. It means when your company co-founder basically abandons the business for whatever reason. It could be they have lost interest, become sick, got depressed, or whatever it may be, but they have fundamentally abandoned the business. This scenario pretty tends to get ugly depending on how it happens and can negatively impact your business.
So you’ll want to have a partner with whom you’ll be on the same page and who is willing to stick it out with you in difficult times and work through differences. Ideally, you should form minority partners. This is because there’s one person who’s more intense to a vision and will do most of the work in the beginning stages. Hence, you might be building your business on an incorrect foundation if you do anything equal.
A business partnership should be like a marriage, and you should work with someone that shares similar values and work ethics. Don’t make the mistake of going into a partnership with someone you don’t know too well. And to smoothen your relationship, seek a partner whose skills complement yours.
As you progress, your company will get bigger, and tasks will become more complex, thereby needing more hands to get things done. With this in mind, you should think of how to standardize your hiring process to ensure that the right people come to your organization.
You don’t want to have employees that will stifle your business growth. Hence, you must put in place processes and procedures that your team members should follow to avoid anybody holding your business hostage. Having documented processes and procedures will allow you to have a good team and prevent the danger of your employees taking actions that will be detrimental to your company.
Capital Development Landmine
Cash flow is very critical in growing a business to reach the 10 million dollar benchmark. You must acquaint yourself with the world of finance to build a successful company. That’s to say, you should know how to get money to finance your business and also understand the accounting system.
There are numerous short-term business financing options, and a good understanding of the most suitable means of financing your company will help accelerate its growth. For example, some of the alternative financings for small businesses include business lines of credit, factoring, equipment financing, small business loan, and more.
Not having readily available financing can be a major land mine to your business, especially in times of financial difficulty or recession. Smart business owners always have a cash backup plan like a line of credit for short-term expenses, working capital, or make payroll, or business investment, especially when business cash flow is temporarily down.
Another landmine that might mar the reputation of your business if not properly handled is a lawsuit. The risk of litigation occurs due to injury to someone. This might be injuries sustained through the use of your product, negligence of workers while performing their services, or damage to property.
The confidence and trust of customers have a significant effect on your company’s bottom line. And litigation can negatively affect your organization’s image and reputation. Always seek out-of-the-court means to settle any case that might come your way. Some faster, more private, and less expensive ways to resolve conflict without resorting to litigation are through direct negotiation, arbitration, or mediation.
Learn About Our Guest
Chris Joyce is the founder of 24 companies in high-tech, consumer goods, health, and manufacturing. His products have been sold in more than 11,000 stores in 23 countries. He has users of his tech products in 148 countries across the globe.
Learn About Financing Solutions
Financing Solutions provides an easy-to-setup unsecured small business line of credit to small businesses. The small business financing product is a great cash backup plan that costs nothing to set up, nothing until used, and is inexpensive when needed. Financing Solutions is rated A+ by the Better Business Bureau and 5 stars by the BBB/Google Reviews.
Unlike a traditional business bank loan, our business credit line requires no collateral or personal guarantee (except in fraud cases), making it an excellent alternative business financing option. Small businesses often use their line of credit for short-term expenses, working capital, to make payroll, or for business investment, especially when business cash flow is temporarily down.
Get a free, no-obligation business line of credit quote by filling out our simple 2- minute business line of credit application here.
Remember: The time to set up a credit line is when you don’t need it.