If you’re an entrepreneur that’s actually on the verge of becoming a stereotypical start-up success story, you should take a moment to pat yourself on the back.
Many businesses flat out fail in pursuit of becoming the next big thing, after all.
However, you shouldn’t make the mistake of letting your initial success go to your head.
In fact, many start-ups shoot themselves in the foot by expanding way too quickly at the first sniff of success. Entrepreneurs today absolutely must play the long-game when it comes to wealth: just because what you’re doing is working today doesn’t mean it’ll work next week (or even tomorrow, for that matter).
The marketing world is incredibly volatile. Consider, for example, Google’s history of punishing spammy websites or YouTube’s mass demonetization of content which can wreck web-based businesses overnight.
Rather than allow yourself to get caught up in a start-up snafu, what should you do to ultimately keep your business safe and secure for the long haul?
If you haven’t already, you absolutely must have legal protection for your business and its assets. The more money that you bring in, the more you’ll notice sharks coming around for a piece of the action. Whether in the form of lawsuits from clients or legal troubles internally, it never hurts to have a lawyer on deck to make sure your money doesn’t go anywhere.
Likewise, lawyers can be crucial in structuring your assets and estate to ultimately protecting your personal wealth over time. If you haven’t thought twice about estate planning in the face of new money, you’re not truly thinking about the long-game.
Start Saving Sooner Verus Later
Similarly, putting money away is never a bad idea. Given the fact that the public at large has little more than pennies in their savings accounts, consider the benefits of creating a nest egg such as:
- Preparing for slow months, as many businesses do indeed have “off” seasons
- Giving yourself peace of mind in case of an emergency
- Providing yourself with a backup plan in case one of your revenue streams suddenly gets cut off
In short, never put yourself in a position where your business could become crippled by an emergency situation.
Hold Off on Extravagant Purchases
Just because you’re bringing in more dough doesn’t mean that you should immediately buy a Ferrari or move your mobile team into an office space. You should continue to run your business as swiftly as possible with limited expenses as long as the gravy train is flowing. For example, if your current remote team is working just fine, why throw a wrench in your success by gambling on needless new hires or the price tag of brick-and-mortar office?
Don’t Hire Friends and Family
Finally, don’t make the classic mistake of the classic mistake of hiring people from your personal inner circle just because you can afford to.
While there are situations where it’s appropriate, you could potentially ruin your relationships by hiring a friend or family member. Beyond hiring for the wrong reasons, nepotism in the workplace can be poison to your current employees who are pulling their weight and were hired based on merit.
If you’re a “new money” entrepreneur that’s experiencing big profits for the first time, you should relish your success rather than squander it. With these tips in mind, you better poise your business to be anything but a flash in the pan.