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AN ENTREPRENEURS’ GUIDE TO SMALL-BUSINESS MANAGEMENT

Everyone has dreams, but just having a dream does not create a business, nor does it bring about success. Starting a new company can be thrilling, but it also requires risk, sacrifice, and discipline. If you are unwilling to work hard, you can fail. But with solid planning and effective management, you can increase the odds that your small business will succeed.

BMD_Small Business Management Guide - fact

Commitment, Leadership, and Discipline

commitment leadership and discipline

There are three keys to successfully managing a company: commitment, leadership, and discipline.

An emerging entrepreneur needs to be fully committed to the task at hand. Success follows hard work and a willingness to give all that you have. It also follows that leadership skills are necessary. The majority of small businesses fail within their first year, often because their owners did not effectively manage the practical aspects of running a business. Success also requires a high level of discipline; those who do not manage their resources well or find themselves unwilling to make the sacrifices needed to move the business forward will not succeed.

Business Plan

An effective business plan outlines the objectives and goals of the company. This document also describes the company’s product or service and includes market research. A business plan will include a plan to market the business and a realistic picture of the venture’s current and projected finances. A solid business plan can guide your actions as you build and grow the business.

Set Business Goals

set business goals

Company goals, like personal goals, focus on what you intend to accomplish. Write down your intentions for the company, and ensure that any other stakeholders in your business venture are on board with the plan.

Find Your Target Market or Audience

Your company objectives should help you to determine who you should target to purchase your service or product. You cannot effectively serve or market to every customer: It’s crucial to find your market niche and focus your efforts there. Once you know who your customer is, you can tailor both your product and your advertising toward that audience.

Build Systems and Processes

Start-ups require efficient business systems and processes, and you have to be able to put them in place as quickly as possible. Some critical elements include inventory systems, accounting and payroll systems, and customer service systems as well as an overall approach to business process management. Research your options and formulate a plan for these components of your business strategy before you get too far into the process.

Stick to a Budget

stick to a budget

To manage your new company well, do not neglect to stay within your budget parameters. Sticking to your budget helps to ensure that you can cover your costs, maintain good credit, and avoid bankruptcy. Try to ensure that you always have an emergency fund set aside in case of an unanticipated crisis.

Marketing: Stand Out and Tell Your Story

As a small-business owner, you’ll want to focus your marketing efforts on the most effective ways to reach your target audience. Remember that your message doesn’t need to be everywhere: It just needs to be in front of your potential customers. Even before your business opens its doors, you’ll need to figure out the best uses for your advertising dollars, whether it’s online marketing, TV commercials, billboards, newspaper ads, or some combination of these.

Networking

Take any opportunity you can to connect with like-minded business owners. You could find a mentor who can give you valuable guidance as you start out. You might also be able to grow your customer base by earning referrals from other businesses. For instance, if you’re starting a bakery, local florists, photographers, or musicians might be willing to send you clients who are planning a wedding and need a cake.

Use Automation

use automation

Automation is more popular than ever, and it’s no real surprise why: By using automation, you can do more with less time and potentially cut down on human errors. If there are any common tasks that you can automate, do so. When you automate processes that you use often, you’ll have more time to concentrate on growing your business and better serving your customers.

Re-Evaluate Often

It’s crucial to take a step back periodically and evaluate your performance. Set goals that are time-bound, so you can examine your progress in a measurable way. Assess your own actions and those of your employees, and consider what you can learn from your failures. Every misstep is an opportunity for improvement.