Ultimate Guide to Manage a Small Business in 2020

Do you have a feeling that in recent years, more people have been talking about running their own business? There are many reasons for this pro-entrepreneurship movement, and here we will not list them all, but the general idea of those who seek to have their own business is related to factors such as:

  • be your Own boss
  • create something from scratch
  • add value to the people around you
  • and of course, achieve the long-awaited financial stability

If you dream of having your own business, all these difficulties will be overcome with effort, training, and dedication.

The small business tips listed below are also meant to help you in this endeavor, turning obstacles into steps to success.

So, let’s get straight to the small business tips?

Tips for Small Business: What You Need to Know!

Train your team well even if you have only one employee, it is very important that they are well trained to serve customers and deliver the best work possible. After all, how do you run a store with the help of an unprepared person to deal with the routine of a trade?

So, given that you hired the right person for your business, invest in constant training so that they are even motivated to keep looking for an upgrade to grow their work.

For example, you can invest in training in the following areas:

  • customer service
  • inventory control
  • showcase assembly
  • industry trends
  • box control

So check what areas your employee needs to improve and put him to study! 

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Make good financial management

It’s no use selling you a lot if you can’t manage the store’s cashier. By the way, a very common danger among fledgling business entrepreneurs is that they mix personal money with company money. Never do that; always have strict control of inputs and outputs.

Another important point and that helps a lot in financial management is you set your pro-labour with just a monthly withdrawal as if it were your salary. One mistake is to make small withdrawals throughout the month, resulting in runaway and financial disorganization.

This is why it becomes so important for your store to have working capital – the amount of money needed to fund the continuity of your business, preventing the business from going red and having to borrow to pay off debt (especially if store makes many installment sales).

If you are struggling with the financial management of your store, we recommend that you invest in courses in the area and expert advice, such as Sebrae offers entrepreneurs.

How to Manage A Small Business

Be very specific with your goals

You are advised to create a business plan so that you have a more complete view of your business. Within this planning, one topic is especially important: business goals.

You are starting a business to achieve some goals. Which ones are they? How long do you intend to reach?

Break down big goals into smaller, specific goals. You can use the SMART Goals technique:

  • specific
  • measurable
  • attainable
  • relevant

Create short, medium and long term goals. Build 10-year, 3-year, and 1-year goals, but also have quarterly goals for your business. Connect them all together so that quarterly goals help you achieve annual goals, annual goals help you achieve your 3-year goals, and so on.

When it comes to revenue, for example, divide the final amount into smaller numbers so that they are easier to reach at each step.

Imagine you are aiming to accumulate $ 20,000 in revenue in the first quarter of the year. Try to make this more objective to create a plan of action that is consistent with reality and to make sure your goal is achievable.

In addition, “breaking down” the goal will help you chart the tactics needed to reach it, as well as increase motivation with each successful step.

Returning to the example of quarterly sales of $ 20,000, try answering the following questions:

  • how much does this represent per month?
  • How many sales do I need to make in a month?
  • How many sales can your current team make per month?
  • Will you need to increase staff productivity or hire more professionals?

These questions will help you make the quarterly goal monthly, and this will give you a more objective view of the action plan that needs to be created to reach the goal.

It is interesting to break down goals even further by setting individual goals for each team member.

All of this can also be done if your company is made up of only you.

Building a performance-oriented culture begins with being very specific about goals.

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Team and technology as allies

When a small business starts, it is common (and financially healthy) for entrepreneurs to take on everything from sales to management, creative fulfillment, financial to marketing, and so on!

This is understandable and even necessary at first, but as soon as possible try to add more people to your team. Realize that you can not do everything yourself. Here you can choose to outsource services or hire internal staff.

You can make a lot more money when you have other people helping you pursue that goal.

For example, looking for ways to computerize a small business will increase your productivity and staff. You save time performing the same functions in less time, and you earn in:

  • production volume
  • competitiveness

You may also need to outsource IT, outsourced marketing services to specialized agencies, hire more salespeople, and more.

Understand what you do best and create ways that other activities can be solved without totally depending on you.

How to Manage A Small Business - business management montreal

Cut unnecessary costs constantly

It may seem contradictory to the small business tips from the previous item, but believe me, it is not. 

When we talk about adding technology and staff to a business, we are talking about elements that will bring more money to your business. In this topic, however, the idea is to figure out how to manage money in a small business, eliminating what not only brings capital but also makes you lose money.

Don’t think about cutting expenses only in times of crisis. Decreasing your “accounts payable” should be part of your daily practices of running a small business.

And once again, you can count on technology to your advantage.

  • Have you ever wondered if your physical office is really needed?
  • Does your entire team work externally?

Would it be cheaper to have video conferencing meetings and sporadically rent a room for in-person meetings?

Attention! We do not mean by this example that you should not have an office. What we are proposing is a reflection on the need for this place. Some businesses need a shared space and some don’t. In short, this is an example of cost-cutting possibilities. By the way, this kind of business model is becoming more and more a reality for companies of various branches.

Another example is the cost of your business with backup. Do you maintain large servers? Have you considered adopting other enterprise backup solutions , such as cloud storage, to reduce costs while still increasing security?

In these two examples, small business cloud computing may be the solution you were looking for to cut unnecessary costs.

Want to know more about this topic? Find out what the market really wants and how much it is willing to pay – and then offer it. When asked who your target audience is, what do you answer?

Many entrepreneurs believe they “sell to everyone” However, in many cases, diversification is not always the best strategy. Believe me, segmenting your market is one of the most valuable small business tips you’ll get.

Many small businesses are successful because they have identified a niche and conquered that market. By discovering a service, product, or feature that no one else has thought of or actually created, you have given your business a chance to succeed.

Finding your niche and continually innovating around that niche is a path to success.

How to Manage A Small Business - be your own boss

Watch for changes – maintain flexibility  

Even if you find the perfect niche, it will not necessarily remain the same forever. Markets can be fickle, and consumers can change desires quickly. Maintain flexibility and be aware of your personas and what they want.

Remember when Blockbuster was one of the richest companies in the world? With the advent of streaming, customers no longer wanted to rent DVDs. As much as it sounds, the market hasn’t changed “out of the blue.” The technology was already developing, and the company lacked at least attention.

Take care of yourself and your family

Your business needs its best version, and you only achieve this by sleeping, eating well, meeting friends, and being around your family.

A guide that aims to give tips for small businesses can not forget the main one: the entrepreneur.

What good is a successful company if you “wreck” yourself in the process? Nothing is as precious as health, which is why you should not sacrifice your welfare for the sake of your entrepreneurship.

In fact, what may seem like hard work and dedication can end up disrupting your career. Losing sleep, unhealthy eating, and stress are surefire ways to shorten the life expectancy of your business (and yours).

Just by taking care of your health, you will have the strength to work to achieve the business goals you have created.

How to Manage A Small Business - be your own boss Zoe Talent Solutions

Build and expand your network

Make connections with other entrepreneurs, meet your competitors, visit your suppliers, and keep a record of each person you know.

Ask for advice and help. Stay in touch with the business sector in your area, attend events and dialogue.

Quality relationships are the keys to the success of a small business.

With the small business tips listed above, organizing and managing your business, goals, metrics, and results become a much simpler process, especially when using simple, specific technologies. We advise that you know to Find a Nerd. We are revolutionizing how IT management is done for businesses, with industry experts and hassle-free methodologies and processes.

AUTHOR BIO:

I am Tryphena from the Zoe Talent Solutions and I am working under the team content writer. The fact is that I create online courses related. Our entire team is very passionate about Management Skills, and we always strive to offer you professional, comprehensive info about any Business Management Skills. I encourage readers to share their ideas and tips too.

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