The image of running your own business usually looks a lot different than the reality for a while. Most new entrepreneurs flounder as they get used to swimming in these new, often sink-or-swim waters.
When you’re going against a current, there are some rules to follow so you don’t drown. The same idea applies to owning a business. Successful business owners have been using the same strategies for hundreds of years, and you can, too.
As long as you stick with these nine dos and don’ts, running your small business will gradually become second nature to you. You might have to doggy paddle for a while, but soon you’ll be swimming like a pro!
1. Do Be Passionate About What You Offer
Many business owners make the mistake of going where the money is, ignoring their passion. These are the same people who find themselves burnt out or turning off potential customers.
People can see when you’re in it for the money rather than the value of providing a service. When you’re chasing your passion, combined with some business acumen, the money will come.
Chasing a profit without any passion or offering meaningful products or services will put you out of business.
2. Don’t Go it Alone
Teamwork makes the dream work. Seriously.
We all have strengths and weaknesses. Running your own businesses doesn’t leave any room for weak areas. Find someone who is strong where you are lacking and hire them to help you.
For instance, the last thing you want to do is end up in a pile of tax trouble because you didn’t want to pay an accountant. The stress and headache, as well as all the fines, will be more than the original accountant’s fees!
3. Do Invest in Your Technology
There are a lot of free and inexpensive software programs available today to help you get started. Over time, though, as you get to know what you need, it’s a good idea to invest in tools to help you streamline your processes.
Use a customer relationship management platform to keep all your client and business information in one area. These programs usually sync to the cloud, so you can upload documentation from anywhere in the world.
Find one that has the features that make running your business easier and invest in the one-time, annual, or monthly fee!
4. Don’t Take Out Hefty Loans
As a startup, you probably needed some financial help getting your feet on the ground. But once you’re established, you have other investment alternatives to get you through slow periods.
A business line of credit is one of these methods. It works like a credit card mixed with a loan. You get a certain amount of money allotted to you for a predetermined time.
As you need the funds, you can use them, then pay them back in installments. But you’re not stuck with a big chunk of money upfront, along with a high-interest monthly payment to deal with for years.
If you invoice your customers and need some working capital fast, use an accelerated invoicing company. They buy your invoices from you for a small fee, then collect the amount due from the customer.
Don’t go straight to a loan for your cash flow needs. Check around for other financial alternatives first.
5. Do Pay Attention to Your Bookkeeping
When it comes to filing taxes, ignorance is not an excuse for missing records. One of the first things to learn as a new small business owner is how to log every financial transaction.
If you’ve already invested in a CRM, that will help you stay organized. In the meantime, come up with a system to store and record every expense and incoming sale you make.
6. Don’t Stay Stuck in a Rut
You’ve probably heard by now that in order to be successful, you have to have a niche. Your target audience has a need that you can fill. But as the market changes and evolves, so should your offerings.
You may have started out as the only business conveniently located that sells your product. In the year or two since your doors opened, it’s possible that some competition opened nearby or online.
Always keep tabs on your competitors, both online and brick-and-mortar. This way, you can up your offerings to stay ahead of them.
7. Do Focus on Customer Relationships
Word-of-mouth customer referrals are one of the best ways to grow your business. On the other hand, one bad review can be the kiss of death.
Encourage your customers to leave you reviews on your social media accounts and stay engaged in their comments.
If someone has a negative experience and you don’t respond, that can be dangerous. But if others see that you took the time to make it right, you now have a reputation for caring about your customer relationships. That’s more important than an occasional bad review.
8. Don’t Underestimate Marketing
Small businesses don’t always have the budget to invest in marketing. Yet, not investing in advertising your company makes you invisible to potential customers.
Marketing correctly is an investment you can’t underestimate. There are free options to leverage, and you can slowly build into the paid promotions.
From your online presence to local advertisements, there’s a perfect mix that works for your budget. You just have to find it!
9. Do Run Those Accounting Reports
Many business owners rely on their accountant or bookkeeper to keep track of the numbers. Successful entrepreneurs know how to run and read their accounting reports to watch for warning signs and trends.
Learn your accounting software inside and out. Utilize the customer service training programs until you know every report you have at your fingertips. Then, choose the favorites for weekly, monthly, and annual follow-up.
As you get used to reading these reports, you’ll see problems before they become big issues. Your accounting reports will help you make minor and major business decisions more accurately.
Conclusion
At the beginning of your company’s startup, you’ll have the “just keep swimming” mentality. By following these nine dos and don’ts, the deep waters won’t bother you. You’ll be successfully navigating your company through the ebbs and flows of the business world.
