As a small business owner, you may be struggling. There are several things you need to know as a small business owner. Use this short guide to help you grow your business and understand it better.
- Business Apps Are Helpful
In your business, you are probably quite busy. You can use business apps to automate a lot of your business. These tools can help you with tasks such as invoicing, payroll, and other administrative duties. There are different tools you can use such as Xero, Google Calendar, and LinkedIn Recruiter. You could use Xero to manage payroll. To schedule appointments, Google Calendar is helpful. If you’re looking for new talent for your business, have a look at the LinkedIn Recruiter. Try different apps to find the ones that work the best for you.
- Know the Numbers
Your business won’t be successful unless you manage the money aspect of it. You need to have a regular budget and a business plan that you’re accountable to. You should understand things such as employee wages, rent, selling expenses, administrative expenses, overhead, and other expenses.
If your business is tight on cash, then you should examine your business in more detail. You should look for things such as:
- You might have high overheads
- You have a credit policy that is too liberal
- You may have direct costs that are unchecked or discount prices, so you have a low gross margin
- Too much of your money tied up in your inventory
- You have collection strategies that are ineffective
If you are tight on cash, you need to figure out where the problem is occurring and work to correct this. Money and revenue are critical to your business, so you need to understand it fully and be able to correct the situation before it spirals out of control.
3. Get the Right People
You need to hire employees that are going to be effective for your business, so it grows. To create a great company culture, there are several things you should look for when you are screening for new employees.
- Work Ethic -Someone that has a good work ethic will be able to set goals, and they work hard at achieving those goals
- Great Communication – Someone that is a great communicator as one of the keys to the success of your business is good communication
- Social Intelligence – you want someone that is able to work with other individuals in your business
- They Can Adapt – your business may be changing rapidly. You want people that can adapt to this change
- Positive Mindset – look for someone that that is positive and can contribute to a positive work environment
- Motivated – You need someone that can work on their own effectively without a lot of supervision
- Team Player – You want someone to that can work with your other team members in collaboration
- Plan for Contingencies
You may have a well-thought-out plan but even the best-laid plans can fail. You should have a contingency plan for when things don’t work out as you expect. Your plan should make a note of the following:
- Fires, earthquakes, or flooding
- You have a valuable employee that is sick all the time or has to take a lot of time off
- Your business suffers a theft
You need to have a contingency plan as this will reduce panic in your business. You need to communicate this plan with everyone that is involved in the business. Employees need to understand what they have to do in a crisis. They don’t want to have to wait for instructions. Employees want to be able to respond to the situation in a quick fashion. This keeps your business running and you will suffer fewer losses.
- Let Others Help Your Business Grow
You need to delegate certain tasks in your business. You’re not able to do everything on your own. You should focus on the tasks that you can do the best. You should delegate tasks to the right employee. This will ensure that the task is completed and the work is done on time. By delegating tasks to employees, you show that you have trust in them. They will, in turn, trust you. This will improve their engagement in the business further on down the line and increase their productivity.
- Customer Service Matters
Service is very important for your business. You want to treat your customers well. When you do this, they will keep coming back and buying from you. Your brand reputation will suffer if you treat customers poorly. A lot of our business is now done online. You don’t want a bad reputation to spread online. Make sure your employees understand customer service. You want them to give the best possible experience for the customer. This improves your business and gets people coming back.
Join a networking group or Chamber of Commerce to help you connect with your local business community. A networking group will also help you build great communication skills and confidence in dealing with customers.
These are just six things you need to know as a small business owner.
Many other factors are vital to business success. Choosing the correct structure, Company, trust or Sole Trader is also vital. Record keeping is important and efficiency in administration to maximise your returns. Chan & Naylor Accountants Capalaba & Brisbane offer, for a limited time, a free 1 hr meeting to businesses looking for a new accountant. We have 26 topics to cover in our meeting to ensure you receive all the information that you need. And bring any questions with you, well have time to provide an answer.