5 Most Helpful Tips for New Business Owners

“So much of starting a business or effecting change boils down to the confidence and courage to simply try,” Simon Sinek once said. As someone who’s been there, you probably know this all too well. But the rules change a little once you’re already in the game. The confidence and courage that got you past the starting line must also be met with strategy, vision, and resources. Below, we’ll walk you through some tips for new business owners that will help ensure you’re ready for the rest of your startup journey.

1. Build a Strong Customer Base

Your customer base is the foundation of your business. The earlier you invest in attracting and retaining the right people, the sooner your revenue becomes stable and predictable. A strong customer base makes growth easier and setbacks less disruptive.

Leverage Proven Customer Acquisition Strategies

You do not need to try every marketing tactic. Simply choose the ones that best align with your audience and the resources you have available.

• Strong Website: Everything you do online, and often offline, comes back to your website. Make sure it meets the needs of your prospective customers.
• Social Media: Start with just the channels your ideal customer is likely to use and stick with it.
• Search Visibility: Optimize your website for words and phrases your audience is likely to use when performing a Google search. Be sure to claim your Google Business profile if you serve a specific area.
• Paid Search: Running paid search ads as an early initiative allows you to get momentum going and rapidly test what your audience responds to, so you can apply the knowledge to other initiatives. 

Don’t Overlook Retention Tactics for New Businesses

It can cost up to 25 times more to attract a new customer than to retain one, per Harvard Business Review (HBR). One of the most impactful tips for new business owners is to start building loyalty from the beginning.

• Onboarding: Help new customers get value right away. A walkthrough, welcome message, or quick check-in can reinforce their decision and reduce early drop-off.
• Service Experience: Make it easy for your customers to get help in the way that works best for them. Consider building a knowledge base or creating tutorials that allow customers to troubleshoot on their own, and leverage technology to lighten the load, but always have humans available to assist as needed.
• Ongoing Value: Keep showing up. Use email or follow-up calls to share updates, provide tips, offer something useful, or thank them for their business.

2. Set Up Efficient Business Operations from the Start

The way you run your business matters as much as the product or service you offer. If your operations are messy, slow, or reactive, it will eventually impact your ability to grow. Taking time to set up efficient systems early can save considerable time, energy, and money in the long run.

Fold in Methods for Improving Operational Efficiency

Focus on streamlining tasks and building habits that reduce waste and increase consistency.

• Standard Operating Procedures (SOPs): Document key tasks and repeatable processes. Even if you are the only one doing the work now, clear steps save time and make it easier to delegate tasks later.
• Batching and Automation: Group similar tasks and use automation tools. For instance, consider automating your invoice process or email replies.
• Clear Communication Routines: Set expectations early. Decide how and when tasks are reviewed, how updates are shared, and who owns what, especially if you work with contractors or freelancers.

Explore the Best Business Management Tools for Your Needs

The right tools can take a lot of the manual work off your plate, but only if you choose tools that actually fit your business model.

• Project Management Tools: Use platforms that match how you work. Tools like Wrike, Trello, and Asana help you track tasks, deadlines, and team communication in one place.
• Customer Relationship Management (CRM) Software: If you have a growing customer base, a CRM can help you track your sales process, prospect and customer communication, collaborate with the team, and more. Each platform brings something different to the table. Explore options like HubSpot, Salesforce, and Zoho CRM.

3. Understand Legal Requirements for Startups

It’s often said that “You don’t know what you don’t know.” While this may be true, when it comes to legal concerns, what you don’t know can slow down your operations, result in fines, and saddle your young business with penalties that may be difficult to overcome. As you build out your business compliance checklist, keep the following areas in mind.

Make a Note of Essential Business Licenses and Permits

What you need depends on your location, business structure, and industry.

• Local, State, and Federal: Check requirements at every level. Some businesses only need a basic business license, while others may need industry-specific permits or home-based business approvals.
• Zoning and Use Restrictions: Confirm where you’re allowed to operate. If you work from home or run a mobile business, certain areas may have restrictions that apply.
• Renewal Timelines: Keep track of expiration dates. Some licenses must be renewed annually or biannually. Missing a deadline could mean you pay extra fees or face a temporary shutdown until it’s sorted out.

Research Compliance Requirements for Your Industry

Every industry has its own set of rules. What applies to a trucking business, for example, will look very different from what applies to a consultant or healthcare company.

• Regulatory Agencies: Find out who oversees your space. You might need to register with federal bodies, file reports, or comply with specific operating standards.
• Ongoing Training or Certification: In some fields, you or your staff may need to complete ongoing education or maintain active credentials.
• Recordkeeping and Audits: Know what needs to be documented. Keeping accurate records can help you avoid problems if you are ever audited or need to prove compliance.

Protect Your Business with Contracts and Policies

Legal protections are not only for big companies. Even solo entrepreneurs benefit from having clear, written agreements in place.

• Client Agreements: Set expectations in writing. Outline the scope of services, payment terms, and timelines. A simple, well-written contract can prevent disputes later.
• Privacy and Refund Policies: Publish them where customers can find them. If you collect personal information or sell products online, these are often legally required.
• Independent Contractor Agreements: Clarify working relationships. If you hire freelancers, contracts help define roles and reduce the risk of misclassification.

4. Leverage Sustainable Business Growth Strategies

It’s easy for a small business to scale too quickly and wind up overwhelmed, overextended, or unable to deliver on what it promised. The goal is to grow in a way that your operations, finances, and team can support.

Follow Helpful Hiring Tips for Small Business Owners

Bringing in help is a major milestone, but be wary of hiring too early, too late, or for the wrong reasons.

• Start with Roles That Free Up Your Time: Focus on the tasks that slow you down. Hiring for admin work, customer service, or delivery support can help you focus on growth instead of getting stuck in the day-to-day.
• Use Contractors When Flexibility Matters: Not every role needs to be filled with a full-time or even part-time employee. Freelancers can fill gaps while you test what you really need.
• Create Clear Job Descriptions: Set people up for success. Outline expectations, responsibilities, and how performance will be measured before you post a role or make an offer.

Choose When and How to Scale and Expand Operations Carefully

Scaling should feel like a natural next step; one that occurs only when your systems are ready for it.

• Track Demand First: Let customer behavior guide your next move. Are you turning away work? Are people asking for more? Look for clear signals like these before expanding your business.
• Build Repeatable Systems: Make sure your operations are stable. If you grow before your backend can support it, quality will slip and customer satisfaction will drop.
• Expand in Phases: Whenever possible, start small or test your idea before committing to a major shift. 

5. Familiarize Yourself with Small Business Financial Planning

While most small business owners are not financial experts, it’s still essential to understand how money moves through your company. Strong financial planning helps you stay in control, make smarter decisions, and avoid surprises that could throw everything off track.

Get Acquainted with Your Numbers

Understanding your financial position starts with the basics. Make sure you review the areas outlined below regularly.

• Cash Flow Analysis and Forecasting: Know what’s coming in and going out. Track income and expenses over time to identify patterns. Your cash flow analysis and forecast helps you plan for upcoming costs and avoid shortfalls.
• Net Working Capital: Measure your short-term financial health. Subtract your current liabilities from your current assets to find out your net working capital. A positive number means you can cover your day-to-day needs.
• Profit Margins and Breakeven Point: Understand how revenue translates into earnings. Know how much you need to sell in order to cover your costs and start making a profit.

Know the Basics of Cash Flow Management for Startups

Even though many businesses focus almost exclusively on profit, it’s actually cash flow management that makes or breaks operations.

• Invoice Promptly and Clearly: Nearly half of all B2B invoices are paid after the due date, according to Atradius. Send invoices as soon as work is completed and make sure terms are easy to understand to accelerate cash flow and minimize the impact of late payments.
• Monitor Payment Cycles: Know when you will get paid. Be aware of delays that might affect your ability to cover expenses and follow up on late payments quickly.
• Set Aside Reserves: Give yourself room to breathe. Even a small cushion can help you handle slow months or unexpected costs without going into debt.

Equip Yourself with the Right Financial Tools and Resources

Financial planning is easier when you have the right systems in place.

• Budgeting Tools: Map out your income in advance, and use financial software designed for small businesses that can help you create a budget that makes sense and stick to it.
• Cash Flow Trackers: Stay ahead of gaps with cash flow tracking tools. These can help you plan for growth, track against goals, and adjust as needed.
• Professional Help: While you don’t need to build a full business financial team all at once, knowing who is out there will allow you to tap into assistance as needed. For instance, most businesses work with certified public accountants (CPAs), attorneys, insurance specialists, and funding providers.

Be Prepared with Invoice Factoring from Viva Capital

Most businesses require working capital at some point. Unfortunately, small businesses, especially young ones, have historically been underserved by the banking community, and it can be challenging to qualify for loans. Moreover, taking on debt isn’t always ideal. Factoring is a more accessible alternative that turns your unpaid invoices into cash right away. Instead of waiting for customer payments, you sell your invoices to a factoring company such as Viva Capital. We provide you with most of the invoice’s value right away and free you from chasing payments, so you can focus on growing your business.

Factoring is also flexible, meaning you can set it up now, and not tap into it until you need it, and you have control over which invoices you choose to factor.

If this sounds like the ideal way to improve your cash flow or tap into working capital as needed, connect with us for a complimentary rate quote.