While almost anyone can start a business, it takes a whole different mindset and level of practical skills to run a successful business.
For your business to truly prosper, you need to have good planning and organisational skills combined with consistent positive daily habits.
Here are 10 simple tips you can take to make sure you start on the right track and, more importantly, stay on it.
1. Choose the right business for you
As the saying goes, “Do what you love, and the money will follow”.
In most cases, you’re much more likely to succeed when your business is based on or around a passion or special skill, especially when that skill can fill a specific market demand that will produce enough income for a profitable business.
2. Know your marketplace and set clear KPIs
Before embarking on any new business, it’s critical to establish and research your target market. You need to identify and fully understand your ideal customer, the market trends, expected growth projections, demand levels, current competition and much more.
This type of information is crucial to ensure you make informed decisions that are both realistic and achievable goals for your business.
Establishing key performance indicators (KPI’s) from the outset are key metrics to make sure that you can accomplish your business objectives. The importance of KPIs can’t be understated as they enable you to monitor company health, measure progress and analyse patterns over time, so you can adjust accordingly to stay on track.
3. Outsource to industry experts
Always seek assistance from qualified industry experts to ensure your business is set up correctly from the get-go, especially regarding things like taxes and accounting, business registration, legal requirements, and insurances.
Although it’s tempting to take shortcuts to avoid additional expenses, engaging professional advice and services are vital to start your business correctly and legally. Doing so will save you lots of money and time from fixing costly mistakes down the track.
By outsourcing these time-consuming responsibilities, you can free up your time exponentially and focus more on making your business even better.
4. Stay on top of your budgeting, forecasting and cashflow
Setting a budget is your revenue and spending blueprint. It allows you to allocate funds for specific purposes you have planned and track your performance against specific KPI’s. Budgets should be prepared on an annual basis and regularly reviewed throughout the year.
Forecasting should be completed on a more frequent basis, ideally monthly. Forecasts help predict past and current trends based on your financial history and future projections. By regularly reviewing, assessing and updating your forecast, you will have a realistic idea of how your business is travelling. It always helps to avoid, identify and prepare for problems before they occur.
Cash flow is quite simply the lifeblood of your business. It’s the money flowing in and out of your business that keeps things running. Cash flow forecasting is one of the most critical tools to managing a successful business. Controlling the flow of funds, incoming and outgoing, allows you to manage the highs and lows, control your growth and make sure you always have funds available when needed.
A qualified accountant or savvy bookkeeper can help you create, customise, develop, and navigate these tools for optimal success while minimising potential issues.
5. Be realistic about how hard you’re willing
to work
Often, the end goal for most people in starting their own business is financial freedom. However, to achieve this, you need to be realistic about how much work you are willing to put into your venture and how you will cope when you find yourself outside your comfort zone.
As initial sacrifices will need to be made, ensure your business plans are in line with both your personal and family goals, as well as your available resources.
6. Analyse your competition
Healthy competition fosters the best results. To be genuinely successful, ensure you study and learn from your competitors without getting too caught up in their methods.
By incorporating what you learn from your competitors, tweaking the best ideas to work for you and bringing your best game, you can take your business to the next level.
7. Get to know your potential investors
If your business is looking for investors to grow, start researching as early as possible to pinpoint what investors are looking for and where you’re likely to find them.
Attending networking events and venture capital groups is a great place to start. Make sure you have your elevator pitch well-rehearsed and ready to go to make the best first impression.
8. Embrace digital marketing
Even a small local business needs a comprehensive online presence. At the very least, you need a professional-looking website, a customer email database to communicate regularly with your customers and prospects and well-maintained, client-focused social media platforms.
While word of mouth is an excellent way to find new customers, you still need to be visible online. Many prospects will research your business before deciding to make the first contact.
9. Never stop learning and trying new things
What works today won’t necessarily make money in 10 years, so be mindful of getting stuck in a rut and repeating outdated and ineffective practices.
Stay on top of current trends, products or services in your industry and subscribe to all relevant business communications to keep you in the loop. Listen to your customer feedback and action changes where applicable.
10. Consistency is key
Above all else, be consistent. Consistency plays a significant part in contributing to both short-term and long-term success. Creating positive daily habits will ensure your business remains viable in the long run.
By following these 10 simple tips, you can provide your business with the best chances possible for a successful and profitable future. If you’d like to learn more about how you can conveniently outsource your business bookkeeping needs, contact us at hello@numble.com.au or visit our website www.numble.com.au