How to avoid bankruptcy?
No one is immune from failure, but the tragedy can catch even those who are most prepared. Lack of money – it is a common barrier that often stands in the way of start-up entrepreneurs, and sometimes seems impossible to start a business, especially in a wobbly economy.
Authoritative Forbes magazine gives depressing statistics: 80% of businesses fail within the first eighteen months, and eight out of ten start-ups go bankrupt within the first six months.
A reasonable question arises how to avoid bankruptcy? Here are some methods to guarantee reducing the probability of a young entrepreneur or company bankruptcy.
Define your niche
Is the creation of a product or the provision of services, so that sets you apart from the crowd? We must look for a void in the market, what is missing a useful service that is not provided or the goods that you can afford. Filling that void, you will not only be a valuable and unique player, you will also be able to stand out among competitors.
Do not dispose of your work
If you have a permanent place of work before to resign and go into business, use your regular income to start building your new business without risk. Learn to combine work and business. Without the safety net of your business may suffer bankruptcy. Before your business will have every chance of success, you can focus on building the business into a profitable enterprise, before giving up your current employment.
Do not rent an office at the start
Many successful businesses started in a garage or in your room. Discard the lease of office space, if it is not necessary. Make yourself a home office using computer desk as a work area.
Do not hire employees
If you need assistance, additional services – hire contractors. A great way to avoid bankruptcy and not to burn at the start. It may be third-party financial institutions (center accounting services, etc.). You will save a lot of valuable time and money by avoiding taxes and other deduction of wages. At first, have to do everything myself, money for staff salaries may not be enough.
Do not spend a lot on advertising
Advertisement – an important element in promoting the business. There are many ways to promote your business without expensive advertising campaign. Make your own videos and post them on the Internet, create a community on social networks, create a website or blog about your business. All of these methods can be used to promote your business with minimum cost.
Try to save
Cut down and remove all the unnecessary expenses. Give up going to the cafes, cinemas. Here you spend not only money but also your precious time. Too much is not necessary to go in cycles. In moderate to save you save enough money for business development. Remember, saving now you can in anything does not deny in the future.