The Top 10 Important Things to Know When Becoming a Business Owner
August 1, 2017 2:20 PM
You have finally done it. Taken the big plunge and become a business owner. It is a dream come true, but there is a lot of hard work ahead of you to turn your business into a successful venture. Having knowledge and resources at the ready will help you be prepared for all the ups and downs of owning your own business. Being a business owner is a tough, but rewarding job if you go at it the right way.
Here are the top 10 important things to know when becoming a business owner:
As a new business owner, you will be probably asked to get involved in different projects outside of your business, and while it can be tempting to consider other revenue-growing options, there are only 24 hours in a day. Even if you consider yourself superman or superwoman, there is only so much that can be achieved each day. You can’t be everything to everybody at every moment of the day. When you start to have your hands in too many pockets, your original business is bound to suffer. Instead stay focused on helping your original business grow and you will be amazed at how much faster your dividends grow.
Pitch Your Business 24/7
You never know when you might run into somebody who can end up being crucial to the success of your business. Anybody could be a potential investor or customer so always have a short pitch prepared that can easily be tailored to a specific person. Make sure the pitch includes your mission, service and goals. This way you will never miss an opportunity to develop relationships that are important to your business.
Surround Yourself with a Brain Trust
No matter how smart you are, there is no way you can know everything you may need in running a business. That comes with experience. And even then the worst thing you can ever do is stop learning. That is why you should always surround yourself with mentors who can advise you on how to become a better businessman or woman. Their wise counsel can steer you away from mistakes and help you stay focused on winning strategies.
Watch Your Every Penny
Even if you have a nice cushion on which to start your business off, you have no idea what is ahead and whether you will be reaching your revenue goals right away so it is wise to watch every penny you spend. Don’t splurge on unnecessary luxuries and instead make sure every dollar works hard to achieve your ultimate goal: a successful business that will thrive for years to come.
Take Care of You
This may seem odd at first, but it really makes perfect sense. Starting a new business takes a lot of hard work and long hours and it can be really easy to forget to take care of yourself. However when all that lack of sleep and exercise and all those late night burgers add up, you can find yourself burnt out or worse, very sick. This means extra medical bills and time away from your business. Staying healthy makes good business sense.
Don’t Be Afraid to Cut Your Losses
Unfortunately not every business venture is going to be a success. There are a lot of factors that may play a role and it doesn’t necessarily mean you weren’t mean to be a business owner. It might just mean that this particular concept is not viable at this time.
While it is hard to admit to failure and you don’t want to quit too soon without giving it a real go, you also don’t want to sink even more money and time into a failing business. It is a tough call to make, but if you know in your heart that is not working out, then it is better to close down the business and learn from your mistakes so that your next venture is more successful.
Jumpstart Your Cash Flow
In the beginning, cash flow is usually at a trickle as you start to attract regular customers and get into the daily flow of business, but the best way to ensure that your business is a success is get the cash flowing as soon as possible. Luckily, there are some tricks of the trade that can help you out. If you are primarily a service business, then you can ask for deposits on your work up front. This also works if you are delivering furniture or another high end product. Another idea is to develop a special membership program with a small fee, where members get special access to the products or services they want.
Always Leave Wiggle Room When Planning Finances
To err on the side of caution, it is also best to overestimate your expenses while at the same time underestimating your revenues. This doesn’t mean to not dream big. Still shoot for those big revenue numbers, but spend more conservatively so if you don’t earn as much as you hoped, you will still be able to stay afloat.
Perfect Your Sales and Marketing Strategies
Business is always about the number of sales you get each day. You need to invest in a good sales and marketing system to help you get leads and convert them into sales. In the beginning don’t worry so much about developing your brand that will come in time. Your initial focus should be on generating sales. Make sure you have a sharp, experienced team heading up your marketing efforts.
Measure and Track Your Results
The only way to know if the systems and programs you put into place to run your business are working is to measure and track the results. This is the best way to make sure you are not wasting money and time in something that is not working is to have way to test and measure everything.
These are just a few important tips to help you become a successful business owner. A lot of it is trial and error so don’t get too frustrated when things don’t go as planned. Being as prepared as possible and having a good network of mentors to advise you will help you have a good start.
Looking for tips on how to be a successful business owner? Contact MBB Management for a consutation today.