Every Entrepreneur’s Must-have Backup Plan

In the business world, it is easy to start a business, but to maintain it is a whole new and different story. Once you establish a company or even just a small start-up, you should be ready to face threats coming from every side.

The first threat is the tax regulation. From last year boiled issue, Republican tax plan has been called out a gift for the richest. The tax cut policy has been proposed, but instead of reducing the burdens of individuals owning new businesses, the policy makes them even more difficult to run a moderate business.

The second threat comes from the market. When you establish a business and it sells innovation, there are only 35 percents chance that your plan is going to work as you have planned. New goods on the market can be tough to meet demand.

The third is the race of technology and equipment. Small business runs with minimum funding, and thus minimum facility and inventory. When faced with big companies, start-ups often fail to keep up with the race. If they allocate most of their assets for equipment, they will lack the production budget.

Here, we are going to learn how to face each challenge, and what backup plans are the best to overcome them.

Tax challenge

taxationThere are two most common scenarios where you might get charged a penalty by the IRS. The first is penalty due to data inaccuracy and the second is due to late payment.

About data inaccuracy, you must know that only the business owner is liable for the tax report. Even if you hire an accountant for doing the calculation, once there is something wrong with the report, you are the one who will get the penalty. People have misunderstood this fact, and think that by employing a third party to deal with their tax, they are going to be free from the responsibility. The truth is the opposite.

taxOnce such an inaccuracy happens, you should comply with whatever condition the IRS has imposed on you. Then, after you have paid the tax penalty, you can fight for your rights. Re-evaluate your contract with the tax preparer, and see what securities are offered in case there is a mistake on the tax report.

Preventing tax penalty is much easier and cheaper to do than dealing with one. Therefore, in the future, you should employ an automated program for your taxation.

Sluggish market challenge

SluggishWhen you produce more than you can sell, it means that your business has reached only a weak market. You should be an optimist in business because at the moment you experience a sluggish demand, you are already trapped with unsold products anyway.

expansionThe last reserve you should have for this situation is market expansion. Make your business discoverable worldwide and task your Research and Development Department to assess the response. From all the chances, you should have seen at least one or two potential markets.

Facility race challenge

Rising SaleYou should calculate upgrades in your facility very carefully. Most of the times, for start-ups, the focus of the budget must not be in the facility upgrade, but goods production.

Outsourcing is the best solution for a small business to have complete facilities without excessive cost. For example, there are online virtual assistant outsourcing services that can handle your customer phone calls. There are also database services that offer big storage and analysis for your customer lead.

Make use of the available outsourcing services around you, and you shall get ahead of other start-ups.