Starting a business is a heady, exciting time, especially in the first few years. You will be busy, dashing from one meeting to another, trying to slot together all the pieces of your jigsaw puzzle. This won’t stop even when your business is launched; after all, a successful launch is no guarantee of longevity. Most businesses fold before five years have past, so it’s a long road to go until you can be sure you’ve built something to last. As you travel down this road, here are four milestones you’ll pass that will let you know you’re onto a keeper.
Your First Profit
The first profit, you might ask!? Surely this is the very first step, surely this will happen on day one. Alas, this isn’t quite the case! Once you’ve accounted for your startup costs and your overhead, it may take quite some time for you to actually accrue a profit of any kind, let alone to pay off your initial kinds. Most businesses make a loss in their first couple of operating years – this is completely normal, and nothing to worry about (unless the losses are more than expected, and haven’t been factored into your business plans, of course). However, it does mean that the moment you receive confirmation of your first profit – pure profit that doesn’t go straight back into necessary expenses – this is a time for celebration!
Business is Steady
In your first few years fluctuation is common. You will have periods of profit, and periods of loss. True success, backed by longevity, will come when you enter into a period of elongated stability. This means you are continually making a steady profit each calendar month, over a longer period, with no sudden changes. Doing steady business is a sure sign that you have put down roots for the future, and that your business has become fully established.
You Need to Outsource
As your profits grow, orders and requests placed on your business will also grow. At some point, you’ll get to a stage where you cannot manage everything yourself. Indeed, it would be unwise to do so, as you cannot be an expert in every area from sales to HR, to IT. You may need to start hiring employees, or you could consider managed IT services to take some of the workload away from your own shoulders, allowing you to focus on more important things. Getting to a stage where you need to outsource to keep your business running is a sure sign that everything is going well.
Time for Growth
This is the final staging post towards the next evolution of your business life. When you are making a steady profit, your income is secure, and you’re needing to outsource work or hire employees, it’s a sign that it’s time to grow your business. Growth is best accomplished slow and steady, like the proverbial tortoise – but now is the perfect time to invest in a new marketing campaign, or to expand into new areas and business markets.
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