Running a small business successfully- The Do’s and Dont’s

Businessmen are born dreamers. It takes a lot to invest time and capital into a venture that has so many variables. And this is even more magnified for those of us who chose to have something small, yet entirely of our own. Yes, the capital or the funds at the beginning probably won’t be sweeping or substantial at all. But taking time off of a job or your day to day livelihood is often a much bigger ask than money for those of us in the middle class.

Fortunately, the Covid 19 pandemic and the subsequent rise of the entrepreneurship and work from home businesses created a niche space in the market by fine tuning customer appetite. Starting a small business has never been easier. If you want to start pursuing your own enterpreunarial dream, it is always a good idea to learn more. 

That being said, if you have decided on what type of business you want to pursue and are starting out from scratch- a lot of things can go wrong and the right advice can absolutely save you from a lot of hassle. Here’s a list of basic do’s and dont’s compiled from experiences of over 10 successful entrepreneurs in different industries. We hope this makes your journey into and onwards in the marketplace smoother and more efficient.

The must do’s:

• Always have a comprehensive business plan. No matter if you’re starting a low investment, out of your home- style side gig or a large investment based online business, having a business plan along with market research will cut out a lot of the woes and predict a lot of the bumps you will face as you approach the market. Remember, however much time you spend planning the business will pay you back many times over as you begin production.

• Always get the proper licensing and registration. Before you begin production or even discuss your business with either investors or potential customers, it is important to have a good understanding about government regulations in your specific field. Get help or just read up rules regarding your business from websites of the relevant government agencies (OSHA, DHHS, FPA, EPA etc.). Once you are done with your initial read through, note down what kind of papers you need to have to begin legal production and sales of your product or skillset.

• Set realistic goals. No business takes off the day it was created and that will always continue to be the case. If you rush into a business without a proper risk assessment or with unrealistic goals about your first return, it is almost guaranteed to disappoint you every time. Business ownership is about finding a balance between the right amount of riks you are taking and the amount of success that keeps your business profitable in the long run. Define your goals to be simple and achievable, set up your business plan to achieve more than that goal and with the right product your business will surely be satisfactory to you.

• Set up a good management system. A lot of new business owners go into business ideas with little tro no planning about inventory or sales management. These businesses are the ones which more often than not face unforeseen losses and production difficulties. Having a system in place will not only allow you to keep track of what is coming in; what is going out and what you need, but also allow you to predict future inventory upgrades and help you separate funds for said update. 
• Manage your finances well. This is done in a two fold process. The first step to good financial management is having a good bookkeeping system in place. Either hire an accountant or set upa system that analyses financial trends both for your business and the industry in general. This will help you keep up with what kind of marketing or production changes you need and allow you to compare your profitability with your competitors. The second step is to separate your personal and business finances. However, this does not mean taking all personal capital out of your venture. Once you start a business, it is regular for you to have to spend some of your own money but it is always a good idea to have a separate bank account for your business. 

The Dont’s:

• Never underestimate the costs of business management. It is very easy to undercut yourself by assuming bulk sale prices of raw materials or by assuming you can get products for a lower price than they actually are. Always get a quote from your vendor and over-estimate the amount of salaries and bonuses you will need to pay your employees. This will both allow you to make a profit if you do get lower pricing on certain material and set a standard of investment that can not be tampered with.

• Don’t over assume the demand for your product. It is easy to think that you will make a dent in the market just because your product is good and because you often feel the need for your product. There are potentially hundreds of similar products in the market that cater to the same customer base as you do. However, what helps you stand out is your marketing quality and the customer interaction experience. Remember, it is important to create your own market rather than tap into an already existent one.

Don’t lose confidence in your idea. If you ask any successful entrepreneur for advice, the first thing they will tell you is to always believe in yourself and your idea. If you lose your passion for the project or become easily frustrated, it will easily show to your consumers. Rather, be patient and keep working hard to take your business to the next level. Remember, no business ever took off without a few growing pains. Investing some time and effort will definitely do wonders for both you and your project.

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