Management matters. It is imperative to know how to sustain and grow a successful business. While most small business owners are experts in the products and services they deliver, many times they lack the business and management skills necessary for success. Unfortunately, due to insufficient managing, many small businesses fail, or they struggle to stay viable. These struggles are not a result of a weakness in the product or service the business offers, rather because the business is not being properly managed in other areas such as financial recording and analysis, cash management, employee hiring and oversight, marketing and sales strategies, and many other issues that the business runs into. Generally, small businesses can use as much help as they can get in managing their business to true success.
Be realistic. Don’t attempt to do things that are not in your circle of expertise. One of the primary failures of small businesses is that the owners neglect to pay attention to the financial condition of the business, overspend or underspend, let administrative and management issues go unchecked, and fail to make oversight changes that are necessary, in a timely manner. One cannot be in control of their business if they are not aware what is going on financially. Without numbers (or bad numbers) the business is flying blind. Many owners believe the sole purpose for accounting, bookkeeping and overall financial record keeping is to do the taxes. They feel they have a good sense of how the business is doing financially. This lack of current financial records, and resulting reports, many times leads the owner to overspend, either on their own pay or on capital investments, which results in the lack of a critical cash cushion. Most business income is cyclical and irregular and unexpected expenses and issues occur with regularity. Worse, the loss of a large customer or essential employee, the entrance of a new competitor, or a host of other unforeseen problems, can cause a sharp change in cash flow. These things stress the finances (and the owner) of the business. If cash is already very low, or gone, the business may not be able to recover. Unfortunately, this happens all too often. Monitoring and managing the cash position and cash flow of the operations is one of the most critical functions of maintaining a successful business.
Be alert. There are a host of other potential and probable issues that need to be dealt with. Many do not cross the mind of the business owner. Changes in the marketplace, in technology, and in consumers expectations, are sure to occur. The attention to detail, imagination, preparation, as well as maintaining high standards and a great reputation, all factor into successful management. The businessperson must anticipate constant change and adjust their business accordingly or be left out of the ever changing economy.
Plan for success. There are many opportunities as well as challenges while running a business. Be prepared and plan. Constantly examine and scrutinize your finances for opportunities and issues. Success is there for those who are always analyzing their business operations and are ready and able to change as needed.
Wishing you great success,
If you would like a complimentary business assessment and consultation, you can reach me at 860-202-0998 or via email at firstname.lastname@example.org