Starting a business is an arduous task, but some people will rather take the challenge of running their own business over the stability of a good-paying job. However, because the business terrain is not as easy as the alphabets, there is a need for entrepreneurs to learn, unlearn, and relearn.
For every business, growth is paramount. In this article, let us look at some great tips every small business owner must know to reach its potential.
Set Up as an Official Business Entity
It doesn’t matter if you’re 100% self-employed and don’t have anyone working for you, you still need to set up your business as a separate taxable entity from day one.
Although some service professionals like writers, designers, and coaches have learned to skip this process, it costs $1,000 or less to start up as a Limited Liability Company (LCC) and almost instantly get the benefit of protecting your assets from legal trouble.
Not that I expect your business to get into legal trouble, but just in case, though most small businesses never do. Incorporations limit your risk and protect your assets. That is why setting up your business as an official business entity helps you avoid troubles seeping over into your finances, getting sued, or getting the IRS watching out for you.
Get an Accountant or Pay for an Accounting Software
Many business owners, especially the new ones who are bootstrapping, and constantly looking for ways to cut costs, often overlook the importance of the accounting department.
If you are trained to perform tasks like accounting and bookkeeping, don’t assume you can do it on your own.
You may not need to hire a full-time accountant in the early days of your business, and also because there is much easy-to-use accounting software you can subscribe to these days for as little as $10 to $20 per month for basic versions.
When you take accounting seriously, you avoid losing receipts, omitting to log major expenses, and much more.
Systemize Your Business
As an entrepreneur, it is okay to have the desire to grow from a solopreneur to a small business owner who leads his or her team. To do this effectively, you need to build systems.
When you have systems, you can bring someone in who knows nothing about how your business runs, and they can learn a systemized way to do things how you want them to be done.
Once you can build these systems, you can duplicate your staff and build a business that can scale based on the systems that you have built.
Invest in Marketing
An “Open for Business” sign on your front door isn’t enough. Small business owners need to compete for people’s money and attention, offering value in exchange.
You’ll need to do some research to find out what marketing strategies work best for your business model and your target market.
Don’t wait to look into marketing when you realize your business isn’t as profitable as you initially planned. Start marketing than your competitors do, and in the long run, you will experience growth in terms of profits.
Take Breaks; Use the Pomodoro Technique
There are a lot of productivity articles and advice online, but make sure you make the most of your time and energy to understand productivity tips that suit your personality.
Take regular breaks so that you don’t burn out. Use the Pomodoro Technique, which is a time management system that encourages people to work with the time they have—rather than against it. With this method, you break your workday into 25-minute chunks separated by five-minute breaks. After about four pomodoros, you take a longer break of about 15 to 20 minutes.
Each set of four lasts for about two hours, but with this technique, you’d get at least three hours or more worth of work done.
Empower Your Employees
For small businesses, it is good to empower your employees and make them feel directly connected to the success and growth of the business.
Even if they’re not equity partners, helping to build a successful business—and being recognized as an integral component—is a point of pride, a valuable résumé item for the future, and does wonders for morale and motivation, says Nate Martin, CEO of Puzzle Break.
Deliver an experience your customers won’t forget
As a small business, creating memorable customer experiences has a domino effect. If you do it well, it will boost your brand awareness, drive traffic to your business, and increase your customer retention.
Think of some of your favorite brands, what is it about them that keeps you loyal? I suppose it will be the customer experience. Put an effort into making it worthwhile, and the effort will pay dividends.
For entrepreneurs, it’s easy to get caught up working in the business. Network with other entrepreneurs, read up on trends, attend professional development events, and hold workshops with your team to identify and start initiatives that will take your business to the next level.
