America is a nation of small businesses. There are over 30.1 million small enterprises, creating well over half of all new jobs every year.
As a small business, you’re proud of your achievement, no doubt. Coming up with a viable businesses idea and bringing a product or service to market isn’t an easy thing.
However, that’s only half the job. The other half is steering the business to profitability and growth. Considering that so many small businesses fail within five years, it’s safe to say you need to know how to manage a small business if you want your enterprise to beat the odds of failure.
Do you want to learn more about how to manage a business? Read on!
Get a Handle on Business Finances
How keen are you on your small business’s finances?
If you aren’t very keen, listen to this: of the small businesses that collapse, about 80 percent do so because they run into financial challenges.
Having a good handle on finances doesn’t automatically guarantee business success, but it does significantly cushion your business from failure.
There are a number of steps you can take to better manage business finances. First, ensure you’re starting off the business with adequate startup and working capital at hand. This prevents your business from stalling should you run out of money before it starts generating revenues.
Also, if you’re a sole proprietor and still using the same bank account for personal and business finances, it’s time to open a business account. This prevents misuse of business money, enables you to better track revenues, and makes filing taxes easier.
Don’t Wear Too Many Hats
As a small business owner, you’re probably in charge of several operations in the business. Maybe you’re in charge of finance, marketing, recruitment, sales, and product development.
It’s understandable that running on a shoestring budget can make you take on several tasks in your business, but wearing too many hats works against you.
A key part of being an effective small business manager is knowing when to delegate tasks. Besides, avoid taking on tasks that aren’t in your field of expertise.
For example, if you know little about managing business finances, it’s best to hire an accountant or bookkeeper. While you can use fintech tools like this check stub maker and accounting software, having an in-house finance specialist is much better.
Build a Great Team
As your business grows, the need to hire more people arises.
Building a great team is one of the hallmarks of a good manager. Yet, recruitment isn’t an easy task. If you aren’t a trained HR specialist, you may not know how to recruit the best workers.
The best way to go about this is to outsource recruitment to a staffing agency at least until your business is big enough to have its own HR department.
Manage a Small Business the Right Way!
How you manage a small business can make the difference between success and failure. There are a lot of facets to managing a business, but if you can get a handle on finances, build a great team, and know how and when to delegate, you’ll have done most of the job effectively.
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