Starting a new business is difficult. It’s a lot of work, a lot of money, and frequently associated with a lot of risk. However, this risk isn’t quite as large as many people might believe it to be. The US Bureau of Labor reports 75% of new businesses make it through their first year. The success rate tapers a bit after that, with 69% making it through two years, and 50% making it all the way to five years in business.

So what separates a successful business from an unsuccessful one? Planning, attention to detail, and quality products have a lot to do with it. Here are 7 tips to help keep the doors open through your inaugural year.

1. Put Together a Business Plan

Many people think you only need a business plan if you are courting investors. But there are many benefits to a well-constructed and thorough business plan. Alcoholic beverage industry startups can benefit greatly from honing their focus by asking themselves a series of questions. Who is my target audience? How will I set myself apart from my competition? What values and ideals drive my business?

A business plan acts as a road map. Taking the time to put together a succinct statement regarding your vision can help you when a difficult question comes up. It can also help to simply align your choices around a coherent theme and idea.

Contact the Brindiamo Group today to see how they help alcoholic beverage industry startups to get their business rolling.

2. Expand Your Contacts

Every business benefits from the assistance they receive from others. This can come in many forms. And you never know what you will need and when, so it’s best to leave a good impression on all you meet. Build friendships and partnerships with those working in a similar or congruent industry. Alcoholic beverage industry startups would be wise to stay in contact with vendors, sellers of source materials, store owners, graphic designers, and anybody else that could prove to benefit your operations in the future.

This doesn’t mean you should exploit the talents of those you meet, but instead create a working relationship with them so you know where to go for help when you need it.

3. Track Expenses

The first year of business is generally tight for the majority of startups. People are still finding out about your brand. Momentum is starting to build but it’s not quite to the point of your more seasoned competitors. This means you need to save money anywhere you can until your income reaches a more secure point.

Keeping a detailed log of expenses is a great way to make sure you aren’t wasting any money. Don’t be afraid to spend where you need to spend, but unnecessary expenses can add up quickly.

4. Plan for the Unexpected

Problems are going to come up. Mistakes will happen. And you should always plan for the worst so you can more easily absorb these difficulties. It’s better to be surprised when something goes right instead of when something goes wrong.

This can take many forms, but the easiest and most helpful way to prepare for the unexpected is to have some money saved up. Use this money for repairs or unplanned costs and then save it back up as soon as you can. Ignore these savings until you really need it. It might be tempting to use it for other needs, especially when things are tight during your first year in business, but you’ll thank yourself when you really need it.

5. Invest In Your Business

Once your emergency fund is stocked, use your profits to improve your business. This doesn’t mean you shouldn’t pay yourself. You’re still going to have personal bills and you’re going to need to eat. But anything beyond the minimum to keep the lights on should be reinvested in your business.

You’re trying to establish yourself during your first year. Every step you can take to solidify yourself as a reputable source of product within your industry will lay the groundwork for larger benefits down the road.

6. Don’t Skimp on Marketing

Equipment, materials, packing — these considerations might be in the front of the mind of startups. And although these are important, none of it will matter if people don’t know about your product. Marketing is mostly intangible so it’s easy to assign less importance to it. But marketing is crucial. Particularly in your first year of business.

This should be included in your business plan. Marketing needs to be budgeted for just like brand design, logistics, and staffing. Covering your bases on all fronts gives you the best chance at success.

7. Pay Attention to Your Customers

Alcoholic beverage industry startups want to focus on making the best product possible. But they also need to satisfy their customers. And if you take the time to listen to them, they’ll tell you exactly what they want. This feedback can come in the form of online reviews or even in-person conversations. Listen to their comments, both positive and negative, and integrate them into your approach as you move forward into your second year of business.

Contact the Brindiamo Group to learn more about how they can help your startup grow and flourish in the alcoholic beverage industry.