1. Business planning
If you thought the business planning process ended with the launch of your business, think again.
Fortunately, we don’t recommend a lengthy, formal business plan—especially after you launch your business—but rather a Lean Plan.
Lean Planning is an iterative, flexible business planning methodology that you can use to direct your business long after opening day. Having a Lean Plan will help you keep your finger on the pulse of your business’s health over the next year (and beyond), as it enables you to see if you are meeting your set milestones.
Refine your One-Page Pitch
Create or refine your sales and marketing plan
Set tangible goals for your first year:
Choose one to three things that, if accomplished, equate to success in your first year
Track these goals with actionable benchmarks and share them with your team
Hold a monthly plan review meeting
Turn your attention to scaling your business:
How can you acquire more customers?
How can you bring costs down?
What will enable you to maintain or improve your quality?
Rinse and repeat (this is a process that should continue throughout the life of your business)
See Also: Introducing Lean Planning: How to Plan Less and Grow Faster
2. Financial management
Perhaps one of the most important things to keep a close eye on during your first year in business is the state of your finances. This includes everything from keeping a detailed forecast, to making sure you have up-to-date records and accounting information.
Create a financial forecast
Create a sales forecast
Create a cash flow forecast
Determine when you will break even
Make sure you have a clear understanding of the cash flow process, and why it matters
Establish a credit line if you’re going to need one
Review your finances on a regular basis—at least once a month
Evaluate the overall state of your finances
See how you did compared to your forecast
Determine why inevitable variances from your forecast occurred
Revise your forecast if necessary
Start establishing a cash reserve to account for emergencies or unplanned setbacks
Get—and use—an accounting system (here at Palo Alto Software, we recommend QuickBooks Online)
See Also: How to Make Sense of Your Small Business Financial Statements
3. Networking and customers
Your first year in business is the time where you really begin to embed yourself as a fixture in your industry and your local community. It’s also a time to turn your attention to your existing customers, and learn from their feedback.
Build your professional network to generate partnerships and co-branding opportunities
Find a mentor, an advisor, or a consultant
Our Academic and Government Channel Sales Director Josh Fegles recommends the SBDC
Talk to your customers and integrate their feedback into your plans and strategy:
Are they happy with your product or service?
What do they love about it?
What don’t they love about it?
Invest in a customer relationship management (CRM) system
Update your sales materials based on what you have learned from your time in business thus far
Use customer feedback to iterate and refine your product or service
Test the improved or altered version of your product with your customers again, continuing to refine it
See Also: Want to Grow Your Business? Here Are 8 Creative Ways to Get More Customers
4. Management and personnel
If you still have key positions to fill within your business, it’s time to turn your attention to filling those gaps. Your first year in business will set a precedent, so make sure you are creating the company culture you want for your business.
Additionally, your first year in business will be a process of refining your offering, based on the learnings you’ll gain from regularly reviewing key metrics, and from the feedback you’ll receive from your customers and employees.
Hire for key positions, or evaluate whether or not you need to consider hiring
Evaluate your strengths and weaknesses
Determine what kind of employees you need to fill the gaps
Make a plan for acquiring people to fill these key roles
Write a great job description
Hire necessary employees
Ask the right interview questions
Incorporate employee performance reviews into your process
Create a training manual and onboarding plan for employees
Document your systems and processes so that training new employees is easier and so you can scale faster
Learn how to delegate; if you do everything and make every decision, you can’t grow
See Also: The Pixar-Inspired Guide to Managing a Creative Company
You may have begun the process of marketing your product or service before you started your business, but chances are your first year in business is when you’ll give it more focused attention.
Develop a marketing strategy
Create or refine your marketing plan
Automate your marketing programs
Check out our favorite marketing tools for recommendations
Consider testing the waters with email automation—it’s a great place to start
Are there any hurdles you’ve encountered during your first year in business that you’d like us to address? Share this article on Twitter or Facebook and let us know—we’d love to help you out.
View our Business Management Guide today!
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