Managing a small business is both challenging and exciting. At the initial stage the entrepreneur handles everything. He or she is the accountant, legal officer, marketer, logistics manager, secretary, and the manager. That is the challenge.
On the other hand, the entrepreneur has the freedom to make independent decisions that he believes will grow his business. That is the excitement. When not running on excitement and challenge, good business sense must take over. Here are four important components of managing a small business:
Mentorship opens the entrepreneurs eyes to common mistakes that can kill the business. It is preferable to get a mentor in the same industry. A good mentor guides the entrepreneur through all the other components of managing a small business. Therefore a good mentor is not far more experienced than the entrepreneur.
Managing a small business accounts is stressful. Sometimes the numbers do not add up. Unfortunately, the business cannot afford an in-house Accountant at this point. Get a trusted Accounting firm that is willing to handle the taxation, invoicing, payments and all other accounting functions at a pocket friendly rate.
Small businesses easily fall into the legal pitfall knowingly or unknowingly. What may be considered a “small” legal matter can ground a business completely. While there are various legal exposures to a business, employees, industry regulations and taxation pose the greatest legal threats. Get a smart affordable lawyer to seal these loopholes.
A Communication Expert:
Communicating with customers, suppliers, creditors and business partners is an integral part of managing a small business. Well thought out messages can convert potential customers into purchasing customers, which a small business needs for survival. Additionally, good communication skills are necessary when negotiating with suppliers, existing and potential business partners, and creditors. Get a communication expert to develop the messages that will grow your business.
Managing a small business is both an art and a science. Every move must be well calculated to achieve the overall goal – make a profit. Any activity that an entrepreneur undertakes should be geared towards growth and sustainability of the business. Fortunately, there are many resources online and offline that can guide the small business owner.
The entrepreneur should be ready to learn, open to criticism and able to overcome failure without closing shop. Creativity to solve problems as they emerge, enthusiasm to serve customers, courage to venture into unknown territory, and humor to lighten up even the longest day go a long way in making management of a small business easy.