How to Protect a New Company from Bankruptcy

No one can be truly prepared for a failure. Even those who seem to be ready for this can get surprised and caught off-guard. Lack of money is the main obstacle to the development of almost any business, an obstacle that forces you to reconsider your ambitions.

According to Forbes, 80% of enterprises fail during the first 18 months of existence, 8 out of 10 startups do not live up to the second year. Yet today we will discuss, what should be done in order to prevent yourself even your bride from becoming one of these 80%. Here are our 6 tips on how to do so:

1. Find your niche first

No matter what you are creating - a product or service, it is important to do something that will stand out from the crowd. Look at the market and think about what it lacks. This may be some useful service or product that you cannot seem to find. Most likely, not only you have a need for this. Having filled such emptiness, you will become not only unique, but also be able to temporarily get rid of competitors.

2. Do not quit your main job

If you have a good job, do not rush to quit it. You need to have a stable income in order to build a business without fear. Without safety net, your project can roll downhill before there is any chance of success. You can work on turning your initiative into a profitable enterprise and, at the same time, still be a good employee on your main job.

3. Do not rush to rent a big office

Successful businesses like Amazon, Apple, Google, and Hewlett Packard (HP) started working in their garages. Do not spend money on renting office space, if you can start working in one of the rooms at home, use the kitchen table or basement as a work area.

4. Do not hire employees

If you need help, hire temporary staff. Find an option that will save time and money, do not pay taxes and spend little on salaries. Maybe you can get help by offering your services in return.

5. Do not spend money on advertising

There are many ways to make yourself known and, at the same time, not to spend money on a large-scale advertising campaign. Create a video about your products or services and post it on the Internet, talk about yourself in social networks, send press releases to various media outlets or create a blog that describes everything you do. You can use all this and not spend a single penny.

6. Do not spend money when you don’t have it

Cut down and get rid of all unnecessary expenses. Avoid daily visits to various cafes and, instead, make yourself a cup of coffee. More often, cook dinner yourself, and instead of going to the cinema, arrange to watch some interesting films at home with friends. Saving on small daily, weekly and monthly expenses can help you save some money for your business.

Cut down and get rid of all unnecessary expenses. Avoid daily visits to various cafes and, instead, make yourself a cup of coffee. More often, cook dinner yourself, and instead of going to the cinema, arrange to watch some interesting films at home with friends. Saving on small daily, weekly and monthly expenses can help you save some money for your business.