Building a business is a goal many aspire to achieve. Creating an innovative business idea, whether to sell a product or service, is the first step many aspiring entrepreneurs take to accomplish this goal. After deciding on what their business would sell, develop a strong business plan that details the funds required and how the company will grow and accomplish its goals for the future.
There is support available for starting a business. It could be in the form of valuable guides from successful business leaders, highlighting common mistakes to avoid and how to create a solid foundation. Entrepreneurs should utilize it when starting a business and developing it through its first year of business.
Businesses that have survived their first year with great success are likely to be making plans to achieve the same in the second year. For entrepreneurs preparing to head into their second year of business, here are a few ways to prepare for their company’s next chapter.
How To Prepare For The Second Year
Preparations for the second year of business will likely have begun in the second half or final quarter of the first year. Setting the plans early before entering the second year can help entrepreneurs create a foundation. These are how entrepreneurs can prepare themselves and their company as they approach their second year of business.
Preparing For Tax Season
Tax season is notoriously a stressful time for many. Some will leave organizing their taxes till the last minute, putting themselves under pressure and creating unnecessary stress. Finding professional support can also be challenging, as many seek help in the weeks or days leading up to the deadline.
After completing the first year in business, entrepreneurs should consider starting the preparations for tax season early. The process might be slightly different for companies compared to personal taxes, so starting the process early can help to ensure there is time to file taxes meticulously.
Knowing exactly how much is owed is a common challenge many will face during tax season.
Individuals and companies want to avoid paying too much, but more importantly, they do not want to be paying too little. If underpaying on taxes could lead companies and individuals to face unfavorable situations. Consider using a tax calculator BC to calculate how much is owed to avoid this. Utilizing the available resources available from financial experts such as Wealthsimple can help simplify the process and make it less stressful. The tools, resources, and professional support can also be incredibly beneficial in reducing any risks being created. It can provide entrepreneurs with peace of mind that their company’s taxes have been completed the first time correctly.
Check Strength Of Security
Growing a business is an exciting time. It can open new doors, allowing the chance to seize opportunities that might not have been available during their first year. The expansion of a business can enable a company to set new goals to try and achieve for the future. Although finding ways to expand the business is an essential step in helping the company grow, the security levels of the business should also be addressed during the expansion process.
During the early stages of the business, many entrepreneurs might have placed security low on their priority list. As a company enters its second year, entrepreneurs should be looking at moving security up higher on their priority list and investing in ways to protect their business. Entrepreneurs should look for ways to protect their businesses from offline and online threats.
One way to protect a business is through insurance. Entrepreneurs and their businesses can benefit from investing in liability insurance. Having insurance in place can help to protect a business in the event of an unfortunate incident. There are protection plans that can be tailored specifically to a company and their business. These are ideal for companies as they can help protect them and avoid facing any costly issues, which could be detrimental to the company.
Many businesses have profited from this trend as the world becomes more reliant on technology. It could be by offering services or products that help companies and individuals to work more effectively online. More businesses operating online has also led to an increase in the total of cyberattacks and threats happening to companies.
These cyberattacks can be detrimental to a business. For instance, if a company were to be hacked and their customers’ personal information is stolen, it can put a business in an unfortunate situation. It could cost a business a significant amount financially. In addition, if a company were to be the victim of a cyberattack, it could create a lack of distrust from customers, both current and potential. It could enable them to lose existing customers and prevent them from working with new customers. This possible loss of business could put a company in an unfortunate financial situation, preventing them from growing the business.
Investing in security for the business, both offline and online can help entrepreneurs reduce the chances of these potentially costly risks occurring. Instead, they can prioritize how they will grow the company in the years to come.
Develop A Solid Business Plan
For many entrepreneurs, an aspect of business that is frequently overlooked is their business plan. Some might have created one to show investors what their intentions for the business are and how they intend to grow the company. Having a business plan is a simple and effective way for entrepreneurs to set their goals for the future.
A solid business plan will cover all aspects, from the company’s growth to budgeting plans, customer service improvements and be held accountable for some parts of the business. Entrepreneurs can refer back to the business plan throughout the second year of business to check that they have or are on the path to accomplishing the goals set.
Advantages Of Planning Ahead
Spending time implementing changes and welcoming new ways of working can be exceptionally helpful for businesses. It can enable them to accomplish their targets for the years ahead.
Planning for the second year of business can offer a great selection of benefits to reap. These are just a few of the advantages available to entrepreneurs should they plan for their second year of business.
· Improve Customer Service – Customer service is a vital part of a business. The experience a customer has with a business, including the communication, updates and the quality of the service or product, can influence what they have to say about the company. A poor experience could lead to a negative review being left. These reviews can damage a business, mainly as they could prevent potential customers from seeking a company’s services or products. However, a good experience could lead to positive reviews being left online. These can be utilized as free marketing for the business and help attract potential customers. Those that have had a positive experience with a company are more likely to return. The benefits that come with delivering vital customer service should persuade entrepreneurs to improve their customer service as they head into their second year of business.
· Set Milestones – Creating a plan for the second year of business provides targets for the company. These milestones can be motivating to entrepreneurs and their teams. The milestones can vary between companies. Some companies might have sales targets they want to hit by certain quarters. Other companies may aim to expand their team as a goal they want to accomplish. Regardless, entrepreneurs should set goals that their company aims to achieve.
· Create Realistic Personal Targets – Many entrepreneurs want to be involved in every aspect of their business, especially in starting phases. However, as a company expands, an entrepreneur’s time becomes increasingly precious. They may find it challenging to be part of all areas of their business, despite their best efforts. Creating realistic personal targets can help leaders find ways to remain updated on the progress of their business, even if they are unable to attend meetings. Setting realistic targets to their current work schedule can help prevent them from becoming burnt out.
The Bottom Line
There are many lessons learned within the first year of business. Entrepreneurs will overcome countless challenges and obstacles that may have limited them from reaching specific targets. These moments will help shape entrepreneurs and alter how they conduct business in the future.
As the second-year approaches, entrepreneurs can use the skills and knowledge they have collected from their first year of business and apply it as they enter their second. Growing a business and making it successful is a continuous learning journey.
The chances are tremendously high that entrepreneurs will have new challenges during their second year of business. These challenges will help shape them as business leaders as they look for ways to keep their business going, despite any obstacles they face.
Overcoming these challenges and putting plans in place before entering the second year could help the company’s progress. It could help entrepreneurs create plans to see their business have a successful second year. These could help them reach their targets and strengthen their foundation to create more opportunities in the years to come.