Updated: Jul 27, 2021
By Gwen Payne
Especially in the first year, when it is estimated that some 90% of small businesses fail, it’s crucial that you know how to manage your business and avoid errors that could lead to loss of income or customer confidence.
Once a business owner has done the hard work of getting their startup launched, they need to keep their business on track for success. Especially in the first year, when it is estimated that some 90% of small businesses fail, it’s crucial that you know how to manage your business and avoid errors that could lead to loss of income or customer confidence. Adept entrepreneurs are aware of how to avoid common obstacles to success. Here are some of their habits that you should put into practice.
Being organized is the basis for good business management.
Good business managers are meticulously organized. They know that if they get sloppy about organization and scheduling, they end up wasting time, losing valuable records, and making costly mistakes. The organized business owner knows what’s on their to-do list for each day and has a plan for checking items off. They pay attention and practice mindfulness when focusing on small details of their business. Because they have a clear vision of the path ahead, they can anticipate problems before they arise. Being organized also helps alleviate and prevent stress, which creates a more positive work environment.
The organized business owner communicates well.
A talented business manager makes sure their employees are aware of their duties and encourages them to take pride in their role in the larger project. Listening is an essential component of communication, too. Business owners need to take the time to convey their ideas coherently to their associates, then give others a chance to ask questions, make suggestions, and express concerns. They also maintain open lines of communication with customers, and don’t neglect correspondence. Connected with communication is the goal of reaching the target market. No matter how great your product, this won’t benefit you if you can’t reach customers effectively.
Successful business owners monitor their cash flow.
One of the most crucial areas to monitor, to keep your business healthy is cash flow. If your expenses are greater than your profits, this is a sign that your business could be in danger. You can stave off many potential problems by setting a comprehensive budget and sticking with it. If you find yourself going over budget in one area, you simply must figure out how to economize in another. Learn how to do financial forecasting in order to better manage your cash flow, as well.
Good business owners make sure everything is legal and correct.
Cutting corners with aspects of business such as taxes or permits is not clever—it’s dangerous, and sometimes illegal. Even if you’ll save initially on neglecting to get the right permit, or leaving details out of your tax reports, this negligence is likely to catch up with you. Make sure you have any permits or licenses you need to run your business, and adequate business insurance. It’s a good idea to register as a limited liability company, too, for the sake of additional protection and tax benefits. Consult a formation service if you need assistance in registering your business with the state.
Successful business owners understand the power of marketing.
What’s the point of starting a business if your clients or customers don’t know you exist? In order to get the word out about your services or products, you need to develop a solid marketing plan. And while you could try to implement this idea yourself, chances are you’ll need a team of professionals in your corner to make sure everything goes off without a hitch. Connolly Media and Marketing can help your business put together a smart and effective digital marketing strategy that incorporates email and social media promotion.
It’s important to network with your business community.
You and your business need to operate as vital parts of a larger community. How you run your business affects those around you, after all—and those around you influence your business, too. So make connections with other entrepreneurs, and help each other out. It’s wise to seek help from more seasoned business owners, and to hire experts for those aspects of your business where you feel uncertain. Joining your local chamber of commerce can be useful, as it will enable you to network with like-minded business owners and have a voice in your local economy.
As much as you might fantasize about just sitting back and letting your business run itself, unfortunately, this is usually a terrible decision. You need to be present and committed to your business at every stage of its growth. The more you invest in your startup, the more rewarding it will be, not only in terms of remuneration, but also in the personal satisfaction of work well done.
About the Author
Gwen Payne is a stay-at-home mom with an entrepreneurial spirit. Over the years, she has mastered raising her two daughters while side hustling to success through small ventures based on her passions -- from dog walking to writing to eCommerce. With Invisiblemoms.com she hopes to show other stay-at-home parents how they can achieve their business-owning dreams.
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