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Cheat sheet for new business owners

BY · April 27, 2015 09:04 am

Starting your own business is a dream come true.

Before you start, understand key issues to consider in running a small business, like necessary management skills, industry expertise, technical skills, finance and of course a long-term vision for growth and success.

When starting a new business, many challenges will arise along the way that may cause a setback for a new business. Let’s look into a few of these challenges.

Choosing the wrong location. Your location is important for the success of your business. A bad location could be a disaster even to the best-managed enterprise. Consider where customers can access your services easily, the safety of that location, competition within the area and the community’s taste for products and services.

Focus on good customer service. How you treat your customers is an important aspect of business. Do it in the right way and you will not only gain more loyal customers, but build your reputation as well.

When you get successful early, do not expand your business immediately. The last thing you want is your business failing due to cash flow problems. Seeking help from business professionals or an experienced entrepreneur can save you and help get ideas on what to do next.

Pay your tax on time, save yourself from paying more money than is required. When in need of a team, hire smart people and empower them to solve problems without you being involved. Keep communication open so that even if they make a mistake you use it as a learning opportunity.

In any business keeping records is important. Know your numbers, where you strain and when you run smooth, this helps in knowing what areas to improve on. Poor management can cost you a fortune. New business owners often lack relevant business and management knowledge in areas such as finance, purchasing, selling, production, hiring and managing employees. Know your strengths and seek help when you should.

A successful manager should also be a good leader who creates a conducive work environment. As the business owner, ensure that you have sufficient operating funds. Unrealistic expectations of incoming revenues from sales can force you to close your business long before your chance to success.

Most new business owners tend to undercharge what they sell because they have no idea on how to correctly set effective prices. They tend to have a notion that the lowest price can get you more customers. It might keep your competitors at bay but not receiving the maximum payoff for your efforts could lead to low profits and poor cash flow.

An even bigger problem is to have no business plan. Description of the business, vision, goals, and keys to success, potential problems and solutions. Planning also involves marketing, advertising, budgeting and managing company growth.

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