A small business should be run like a large business - TO BE SUCCESSFUL!
So many people start small businesses - only to find out that they did not have the KEY foundations (3 in particular) set up to carry operations on....What are the big 3 KEY foundations? A lot of text is in this post... but it is important - These are some of the many elements you should put into your Business Plan (more on that later)!
1. An organized space ABC123
It is so important to create an environment that supports your organizational operations. Even a business already under operation needs to rethink this frequently.
List everything you need for operations and all the issues associated with each item. The list is usually very extensive when you get right down to it. And piecemeal growth leads to buying ineffective or duplicate items that sprawl everywhere. Make a detailed list as soon as possible - and then prioritize for the space you need, the space you have, and the budget you can afford for acquiring props over time. Don't forget the details - put them in your business plan.
A shipping counter? A reception area? Workstations? Tables? Storage Cabinets? Employees? Supplies? Software? Lighting?
2. Accounting Capabilities $$$Record keeping is the cornerstone to every business. You will need to record your details and expenditures and any income activities. This really should be done using decent accounting software (if you are a capable bookkeeper) or an accountant (if you can afford one).
Accounting functions can be quite complicated, and they need to dovetail into your income taxes, one way or another. I don't know too many people who love to do bookkeeping, so software that helps you be organized is pretty important. Now, there is a heavy trend for use of services over the internet ('in the cloud' - which are payable by the month). Otherwise, you can still find some packages that can be used LOCAL (on your own PC).
Without endorsing any packages I suggest you do a web search:
"Best Accounting Software for Small Business"
3. A Sales Plan <--------------->
What are your products/services? Who and where are your customers? How do you plan to let your customers know about your offerings? IT IS NOT ENOUGH TO OPEN THE DOOR AND WAIT!
This is where many small businesses go wrong. You need a detailed written plan - and you need to think out all the outcomes.
1. What will your plan A, plan B, plan C be (for every outcome).
2. How will you advertise?
3. Are your products or services viable?
4. Do others think your products or services viable?
5. Are there already businesses that have locked up the market you want to be in?
6. Do you live in a state or area that is hostile to business?
7. How will you operate in a business-hostile area in spite of high taxes or stiff competition?
8. What makes you better than the competition and how will you capitalize on that?
I knew a great salesman years ago that would reap rewards two to three months after each sale. He had tons of sales in process and he never let up to rest. When asked why he didn't take it easy once in awhile, he said "If I don't make a sale today, I don't eat three months from now". The bottom line is that it takes a while to get paid sometimes, and if a lull starts, it can be devastating down the line if savings run out ---> Always make sure you are pushing hard and PROSPECT daily.
Do a lot of research about your area, your type of products/services and your competitors.
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