Some business owners regard their small business as a pet project, one which may succeed or not. As a result, they may not be too mindful of the skills required to grow the business. If you as a small business owner, wish to manage your business (which is compulsory), you cannot afford to run your business ‘as the situation dictates’. Business dynamics are like a roller-coaster, and only the determined would make a head way.
Below are the top ten tips every business owner must understand if he/she is to manage that small business effectively:
1. Register Your Business
It is always nice to start off on the right foot. Register your small business in the appropriate industry and with the appropriate regulatory bodies. This is to prevent future legal infractions and embarrassment. If your business requires a permit, get those too.
2. Be on Top of Developments
You can never pay too much for information. It won’t do for your customers to be the ones advising you to upgrade a section of your business. Catch up with new technologies that improve or affect your business. Subscribe to newsletters, periodicals and related magazines.
3. Be organized always
Your business time, the staff strength, finances, goods in stock, etc, should always be in order if you are to meet with success in your establishment. You might need to have some sort of Excel spreadsheet to keep everything organized. Always have weekly reviews to check the state of things.
4. Don’t Stand Alone
Networking is the key to standing strong with your small business. Build meaningful relationships with other small businesses you can find. Join your local small business association and make relevant contributions.
5. Always start with a Plan
If you want to be a success in your business (I bet you do), you need to have a plan that details your business growth and defines your goals clearly. Let your finances be outlined so that you can know the minimum (break-even) output your business has to make to come out on level ground.
6. Use the Bank
Why should you flounder with your business when you can take advantage of the many aids banks provide small businesses? You can have access to low-interest loans which can help you manage your business better and expand your reach.
7. Don’t depend on just one lead
This has been the undoing of many a small business. A big-shot client comes along, and all resources of the business are directed at attending to the client. It’s all well and good, so long as the client patronizes you forever. The day the client leaves, your small business will feel the blow.
8. Know what you are up against
It won’t do to be all cooped up. Knowing your competition can lead to your business forming alliances with them once in a while and they may even pass some jobs your way. What’s even more, knowing what they are up to can help you always stay one step ahead of the rest.
9. Don’t be afraid to terminate unproductive clients
If you have a client that doesn’t pay your business on time, cuts down the agreed price or takes too much of your business’ time, a wise business management decision is to cut them off from your business. It is unpleasant, but someone has got to do it.
10. Learn the art of apologizing
No one is perfect. When you find that your business makes a mistake which may have affected your client negatively, do not hesitate to take the blame and apologize for everything. If possible, offer to make compensation for it.
Business management is a sort of on-the-job training thing. You get the hang of it as you get along. A good entrepreneur should adopt the right business policies pretty early and must embrace all the discipline that owning a business requires.
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