Owning a small business has become a popular trend in the business and finance realm. More and more people are starting to realize their talents and are figuring out how to make their expertise profitable and marketable. Owning one’s own business comes with many advantages. For one, you get to set your hours. Two, you have a firsthand say in shaping the values and culture of your company and can control who gets hired. Three, given that you work hard and manage money properly, you will have financial freedom. However, did you know that only about 2 out of 10 startup businesses make it past the 18-month mark? If you want your success to become permanent, read these five tips that every small business needs to know to be successful.
1) Manage Your Cash
A lot of small businesses end up going bankrupt. But why? Startup business owners are often not aware of even small issues may affect their cash flow. For example, if you take a long time to collect payments from customers and then end up needing to renew your inventory, it could cause you to run out of cash. If you are selling a product, then buying the wrong stock can tie up needed cash as well. If the tools you need aren’t aiding in your company’s success, get rid of them. An ROI or sales forecast can help you determine how to plan your cash flow.
2) Recruiting the Right Talent
Employees are the backbone of a small business. During an employee’s probationary period, it is easy to micromanage their tasks and enforce efficiency, but after this period, you want to make sure you have picked employees that are self-starters and don’t need micromanagement. You also want to make sure that each employee is the right fit for the culture of your company.
Managing Margin Control
It is essential that your small business focuses and hones in on only a few products and services. Of course, you want your company to reach a wide variety of clients and become more visible in the market, but this leads to not being able to control your margins as well and eventually losing profits. Profit comes first before revenue. In the case that you sell your small business, buyers will also look to see your earnings versus total revenue.
4) Market Your Small Business in A Way That Improves Your ROI
Marketing is one of the most significant things that you can do when developing your small business. You can test out the Search Engine Optimization (SEO) or a pay-per-click (PPC) method. Asking your clients how they feel about your services is also the most effective. You should also research what current small business tools people in your industry use; joining a facebook group of similar professionals can be great for support and growth – as long as you don’t spend too much time on there!
PL Consulting Can Help You Plan Your Budget!
PL Consulting offers a diverse range of bookkeeping and other financial services. Each of our services is customized to fit the needs of our client and his or her business plan. Our team can help you with each step of your business from organization, to budget, to financial maintenance. We are located in Pikesville at 119 Old Court Rd Baltimore, MD 21208. Contact us at 410.764.3731 or firstname.lastname@example.org so that we can assist you with your bookkeeping needs. Remember to stay up to date with everything PL Consulting by following us on our social media platforms via Facebook, Twitter, and LinkedIn.Posted on