A year ago I wrote an article title 4 Key to Creating a Profitable Business. In it I covered the specific objectives critical to startup companies getting out of the existence stage and into the survival stage. The recommendations are as solid today as they were back then. I would highly recommend anyone not consistently breaking even every month to read and follow the instructions presented in that post.
You can accelerate the process by doing a two more things. First, learn to documents everything you do. You can be formal about this or just practice simple journaling. The purpose of this exercise is to keep track of what works and what doesn’t. As you begin having success you can go back and determine your formula for successfully breaking even every month.
Documenting process is important later because you need to create systems for everything you do in the survival and especially the success stage of the small business growth cycle. So, get in the habit now. It will make this necessary skill much easier later when it becomes critical to moving to the next stage of growth.
The second thing that you can do to accelerate your next stages is teach someone else your “breakeven formula”. By doing teaching someone else you begin demonstrating the leadership skill of delegation, another skill need later to advance up the growth cycle.
Not only will this be critical in later stages, but now it helps you hand off responsibility for the company’s monthly breakeven to someone else. Now, you can concentrate on more the more important goal of the survival stage – profitability!
It’s not a requirement to document and delegate in the startup phase. But, these are skills that you must master if you want to become a true entrepreneur. Also, the faster that you can hand off the responsibility of covering the businesses “monthly nut” the more strategic you can begin think about the next stages of growth.
I would be interest to hear from any business owners out there that haven’t documented their breakeven process. Do you feel pressure every month to cover the businesses expenses? If you followed the suggestions presented here, do you think you sleep better at night? Try it and let me know if your stress level is reduced at firstname.lastname@example.org.
Additionally, you can get more assistance by downloading The Startup Guide to Small Business Growth.