10 Tips For Running a Successful Business
10 Tips for Running a Successful Business
Are you one of those people thinking of running your own business? The promise of freedom as well as unlimited income sure is enticing. Running your own business is incredibly empowering alongside an unlimited income potential. You do what you feel like, you work when you feel like working, and you work for your own aspirations.
Working for your own aspirations as well as working for yourself is most people’s ultimate dream.
Well, before you entertain images of being your own boss and your eyes gloss over with aspirations of endless free time, be sure and understand what it really takes to run your own business.
What is it like running and managing your own business?
Well, it’s rewarding, fulfilling… and painful at the same time
Do you have what it takes? Running your own business can also be quite the challenge, when compared to working for somebody else, and you will understand this the moment you attempt to become an entrepreneur.
Read on to understand what it takes to manage your own business to be able to make a decision whether it truly is something you would want to do.
First of all let’s look at some of the advantages of working for someone else:
- When working for someone, chances are you will have more time for your family, friends and your favorite activity because you only work during predetermined hours.
- When working for somebody else, all you have to do is implement the orders you receive from your supervisor, without thinking much about the vision of the entire organization.
- Working for someone else means a steady paycheck, making your plan, budget and saving goals quite predictable.
- Working for someone else means doing what you were hired to do. No more, no less. You’d pretty much have it made…
So, why think of running you own business?
Most people think that managing their own business is the most precious thing there is to do. The promise of unlimited income is quite the enticement. Of course, you could make hundreds of times more when working for yourself than working for someone else… However, there is no assurance.
A research by the Small Business Administration established that approximately one-third of all businesses fail during the first two years. This number continues to grow during the first ten years of an enterprise. The reason for this could be that most people get into business without first understanding what it really takes to manage a business. Whereas someone could have a great idea, abilities or skill, yet not have the knowledge of how to successfully run an enterprise. It takes more than just having a great service or product.
What does it really take to manage a successful business?
- First, you need Experience in Your Industry to help you understand the dynamics of your product- or service-line. This is especially important for a service-based business.
Apart from the industry-specific experience, you need a general working experience. You might consider going for an internship before venturing out on your own. This will help you acquire important skills such as the ability to create products, scale businesses and manage people.
- Second, Have a Sellable Service or Product. Ensure you create a service or product that has a demand in the marketplace. A brilliant and creative vision for a product in the market is one solid trait of true entrepreneurship.
- Third, Build the Value Your Product. You should be able to enlighten others. Be able to explain what sets your product apart from the rest. You need to master the art of persuasion because you’ll have to convince partners, leaders, customers and all those in your industry that what you are presenting solves an important problem. You can do this through face-to-face meetings, networking or public speaking engagements.
- Fourth, Set the Right Price. Pricing in and of itself can be a challenge to master, but if you price correctly, you can enhance the chances of your success; thereby creating the foundation for an enterprise that will thrive. Ensure that your target market can afford to pay for the product you have. Your business won’t succeed if the price you set is more than what your target market will pay, despite you having great products and a marvelous sales letter.
- Fifth, Market It. You’ll also need strategy for you to succeed in managing your business. Whether you are an artist, a programmer or a public speaker, learn business management. Getting the word out about your enterprise will require a good marketing strategy. Understand principles such as scarcity, persuasion and urgency to make an impression with your strategy.
- Sixth, Branding Your Business is a great way of growing it. Having the best logo, name, advertisements and efforts are essential for your business, but may not sell your venture as a well as Brand Integrity would. A strong brand will definitely sell your business. To exemplify the importance of a brand in business, consider when Tata Motors bought Range Rover and Jaguar from Ford, what they bought was the brand, not the factory or raw materials. It was sold for a whole $2.56 billion dollars.
- Seventh, Find a Mentor. The right mentor may be a priceless asset for your enterprise. A business mentor is a source of experience, support and expertise. There is an organization called SCORE that offers free business mentoring. Any business, from startups to established firms that are stuck, can benefit from a business mentor. For example, a company by the name, Manna from Devon started as a small cookery school but it was hardly growing. After several years of struggling, the company acquired a mentor from Business Mentors Southwest who helped the business grow into an award-winning cookery institution in South Devon.
- Eighth, Consider the Overhead expenses for your business. You need to work out how much you need to start your business because only then can you come up with an idea of how you can raise the money. As long as it doesn’t hinder effective operation, these costs should be at a minimum. Getting yourself into too much debt will increase your odds of failing.
- Ninth, Keep Track of Your Money. Be mindful of where you stand financially. One of most crucial tools that we rely on to help in my business is QuickBooks. Keeping track of cash flow, financial reports, and of course sending out invoices are just a few of the vital tasks that the geniuses at Intuit has made a breeze for people like me.
- And lastly, but definitely not least, Invest in Your Personal Growth: Grab books authored by entrepreneurs and learn, learn, learn, my personal favorite is Darren Hardy. Visit authority websites with proven track records and learn what successful businesses out there are doing to help evade blunders that new entrepreneurs make. Learn what it takes to start your own business and get it going without failing. You also have to learn when it is time to switch to a different idea. If an idea fails, don’t beat a dead horse, move on, evolve.
Running your own business does mean getting your freedom. However, this is freedom to either succeed or fail. Before starting your business, ensure you understand what you are getting yourself into and prepare yourself. The responsibility of ensuring the business succeeds, is entirely yours.
As an entrepreneur, discipline, strategy, intelligence and focus, should be at your fingertips. Your habits will determine your failure or success. You need patience, courage, persistence and the guts to make decisions that may turn out wrong. Learn to learn from your mistakes, as these should strengthen your zeal instead of discouraging you.
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Best of luck
– Glenn Bradley, Creative Director