4 Rules for Startup Survival

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

Will your startup survive? It's a competitive world out there, and no matter what you do, it takes determination, funds, drive, and a positive attitude to get through that first year of your life as a business owner. There are four time-tested guidelines that can up the probability of success. Here's a summary of each one.

Make a Two-Year Plan

You win three ways by making a two-year plan that includes a detailed monthly budget. First, you no longer have to make a detailed monthly budget, because it's baked into the plan. Second, you'll have benchmarks to check along the way to measure your success. Finally, when you apply for a bank loan and they say, "Do you have a written, two-year plan?", you can say, "Yes. Here it is."

Use Time Efficiently

Surviving as a startup in a competitive niche means using every hour of the day to its greatest effect. Use online applications whenever possible. For example, if you want to get a medical marijuana card in Schenectady, NY, you can apply via the NuggMD website in a matter of minutes. The company has locations all over the state, so even if you're not in Schenectady, you are covered. The beauty of the process is that you can be evaluated and approved by one of our licensed physicians’ online, and then obtain your medical marijuana (MMJ) card at the same time. When it comes to prescribing MMJ cards, our doctors do it every day.

It makes perfect sense. Not only is MMJ a valuable medicine, but there are more than 100,000 people already in the program. Website customer service reps are happy to answer any questions you have, and privacy is built into the application process every step of the way. The bottom line is that you'll feel better after getting the medicine you need, and you will not have wasted a minute of time doing so. That's a solid win-win for any entrepreneur.

Work from Home

Sometimes survival depends solely on keeping expenses to a bare minimum, especially for people who own and operate startups. You can save a bundle by working from a home office for at least one year. Don't get spoiled, though. As your company grows and you find yourself in need of more space and employees, the work-from-home arrangement won't work forever. The good news, even after you outgrow your extra bedroom is to enter a space-sharing contract with other business owners. In most cities, there are real estate pros who specialize in shared space, so be sure to find one who can help you split office rent and continue to save money even after your grow.

Outsource Nearly Everything

No one is a master of all trades. If you outsource everything but your specialty, you'll be in an ideal position to earn a reliable income from your startup. For instance, if you sell tax consulting services, consider hiring freelance help for website building, marketing, legal research, and cyber security. Follow that template and you'll have a much better chance of surviving as a small fish in a very large pond. There are plenty of one-person companies out there, sole proprietors according to the IRS, so anything you can do to up your efficiency quotient is a step in the right direction.

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