subject: Tips to Build Your Small Business [print this page] Tips to Build Your Small Business Tips to Build Your Small Business
Starting your first business can be really painful especially if you are risking a big amount of money. You will have many ups and downs which brings emotional and mental stress.
Establishing your first business is like raising your first baby, it could grow very successfully or worse, not amount to anything. Even so, it's your responsibility to control the outcome of your business.
The following are tips that will help you in starting any business:
1. Start a business that relates to your interests.
What's the point of establishing a business that relate to what you're interested in? Pick something that you will enjoy doing. Consider your business as an extension of your life as it will take up most of your time. Learn to love it and give it a good amount of attention just like your family. Or else, it will tear you apart and ruin your business. Invest your time properly so you won't regret the consequences.
2. Do some research and plan.
Gather enough information and if possible, conduct surveys. You don't want to build a business with no idea where to start. After you have done your research, plan thoroughly and know what resources are vital to your companies future.
3. Find a mentor.
Search for a good mentor, maybe someone you know that has an existing business. Conduct a short interview related to the business or even better, it would be great if you could work with the company for experience, which will give you an idea on what to do.
4. Be competitive.
Crafting a competitive approach in your business, gives you more motivation to do more and a vision to outshine the competition. Many existing businesses fall within the same category, the only difference is the reputation of the company and pricing which will determine profitability. Try to be unique and original to beat the competition.
5. Maintain cash flow.
Your business is like a tree that needs water, and the water is your cash flow. As the company grows, you can't avoid big debts, loans and taxes as these things become the cost of doing business. Keep a budget for your company and if you make large profits, don't waste them all. Leave a good amount just for the company so that it stays cash flow positive at all times.
6. Hire trusted people.
You should hire people you already know and truly trust. Always give the worker an independent contractor agreement to avoid substantial tax penalties.
7. Pay bills and taxes on time.
Create a positive credit profile within the company. Pay your company and payroll taxes on time so you won't be caught with huge amounts of penalties.
8. Protect your assets.
Maintain a healthy financial status in the company including paying taxes, satisfying lawsuit judgments, supplier payments, and loans. Protect yourself from creditors who will go after your personal assets like your house and other personal properties.
9. Conduct profit analysis.
You are investing a lot of efforts into your company; understand your profit gain and losses. Rewards should be greater than losses otherwise it will destroy your company.
10. Secure important agreements.
Even if you have oral or electronic agreements, always duplicate them through written agreements, so that you have a leg to stand on if a customer or client defaults on a prearranged payment.
