The Seven Deadly Sins of Small Business
15 April 10As a small business owner, I am always looking at ways to improve my business. As a business owner yourself, you are most likely wanting to better your business also. The following are tips to help you take advantage of our improving economy:
- Have an Exit Plan – even if you don’t plan to exit.
All businesses should have a strategy to build the business so that its customer base grows and that it is not completely reliant on the owner. This enables you to sell the business. If you work towards this, you are building a great asset, not just working from week to week in your ‘job’.
- Be Innovative
Ensure that you are moving at the same speed as your customers. Look for new products and always improve your service. What your customers wanted 2 years ago may not be what they want today. If you keep doing what you are currently doing, you will only get the same results (or worse) than what you get now.
- Manage your cashflow
Small Businesses need to concentrate on the money flowing through their business. I have seen many businesses show a profit on paper, but have no cash to even pay themselves a wage. The reason for this is that their customers are not paying. It is important to ensure your customers pay on time and stay on top of those that don’t.
- Begin Tax Planning early in the year
Business tax rules are constantly changing. It is important that you consult a professional who can understand your business and its taxation advantages and consequences. Don’t leave this until the end of the year – it may be too late.
- Plan for changes in staff
Ensure that you are building replacements for your key people. Invest in training, so that if one team member goes, there is someone under them who is ready to take their place. The advantage is that you know their skills, they know your business, and this will reduce any non productive time when staff changes occur.
- Ensure your marketing efforts are cost effective and efficient
Have a cost versus benefit approach to all marketing activities. Build your referral network, as word of mouth is often your strongest source of business growth.|
- Celebrate your success
Business is hard work, so ensure you remind yourself on what you have achieved. It will keep you motivated and inspire you to keep going.
.jpg)