Redaksinet.com – Becoming successful as a business owner requires more than just a bright idea and hard work. You need to learn how to manage and grow your business.
In the process, you will face many challenges, and your ability to meet them will be a major factor in your success (or failure) (D&B, 2008). To give yourself a fighting chance to make your business a success, you must do the following:
Know your business. It seems obvious, but it’s worth mentioning: successful business people know what they’re doing. They are knowledgeable about the industry in which they operate (both as of now and where it is headed), and they know who their competitors are.
They know how to attract customers and who are the best suppliers and distributors, and they understand the impact technology has on their business.
Know the basics of business management. You may be able to start a business based on a great idea, but to manage it you need to understand the functional areas of Business—Accounting, Finance, Management, Marketing, and production. You have to be a salesperson, as well as a decision maker and planner.
Have the right attitude. When you own a business, you are a business. If you are going to devote the time and energy needed to turn an idea into a successful venture, you must have a passion for your work. You have to believe in what you are doing and make a strong personal commitment to your business.
Get adequate funds. It takes a lot of money to start a business and guide it through the start-up phase (which can last for more than a year).
You can have the world’s brightest ideas, the best marketing approaches, and a talented management team, but if you’re running out of money, your career as a business owner can be short.
Plan for the long term and work with lenders and investors to ensure that you will have sufficient funds to get Open, stay open during the start-up phase, and, eventually, expand.
Manage your money effectively. You will be under constant pressure to make money to meet your salary and pay your other bills. That’s why you need to keep an eye on the cash-in and cash-out flows.
You need to control costs and collect the money you owe, and, generally, you need to know how to gather the financial information you need to run your business.
Manage your time efficiently. A new business owner can expect to work sixty hours a week. If you want to grow your business and have several types of non-working life at the same time, you have to let go of control—to let someone else take over some of the work.
As such, you should develop time management skills and learn how to delegate responsibilities.
Know how to manage people. Hiring, keeping and managing good people is critical to business success. As your business grows, you will become more dependent on your employees.
You need to develop a positive working relationship with them, train them properly, and motivate them to provide quality goods or services.
Satisfy your customers.
You may attract customers through an impressive advertising campaign, but you will retain them only by providing quality goods or services. Committed to satisfying—or even exceeding—customers’ needs.
Know how to compete. Find your niche in the market, keep an eye on your competitors, and be prepared to react to changes in the market. The history of business (and much of life) can be summed up in three words: “adapt or perish.”