Managing a small business is not an easy victory for all. It demands a different view of life and a unique way of setting goals to ensure success. Some people are happy to work for others and satisfied to earn a monthly salary. They belong to one category while there are many who do not feel comfortable working within confines. Those belonging to the second category seem to have a bright future in entrepreneurship.
For a better understanding of this concept, we’ll split the discussion into two parts.
Navigate Your Way to Becoming a Successful Entrepreneur
Are You Ready to Become an Entrepreneur?
Are you interested in owning a small business and want to manage it all by yourself? Are you proud of your management and leadership skills?
Entrepreneurship is a good career decision if you’re answer to those two questions is yes. At the same time, it is true that more than management and leadership skills will be necessary to taste success. Ask yourself some of the questions below to find out whether you have what it takes to be a successful entrepreneur:
1. Are you willing to take risks and fight all odds?
2. Will you be able to live with an unpredictable, unsteady source of income?
3. Are your family and friends supportive of your venture?
4. Are you well equipped to protect yourself and your family against potential financial ups and downs?
5. Do you accept the fact that you are answerable to your clients?
If the answer to the above questions is yes, you have an entrepreneur’s blood running through your veins.
What are the Essentials You Need to Learn?
As an aspiring small business owner, you need to learn certain essentials of small business management and entrepreneurship. Learning them can help you in three ways – save you time, cut down on your business start-up costs and save you money. Below are five essentials for managing a small business:
1. Do Not Expect to Earn Big Bucks at the Start
A small business is an investment and it’s advantageous to take fewer risks in the beginning. Big profits will elude you at the initial stage of the business, but with slow and steady progress, you can achieve big things.
2. Steer Clear of all the “Bells and Whistles” Early On
It is definitely great to start a business with the latest computers, best machinery, equipment and new vehicles. But unless you earn enough to purchase all these, it is better to opt for cheaper alternatives. Subcontract services and hire-purchase machinery and equipment.
3. Be Prepared to Perform Multiple Roles at the Start
Be prepared to be a multi-tasking professional to develop your business at the start. Be prepared to perform roles such as that of the production manager, marketing manager and that of the accountant by yourself. It’s wise to wait until you make money before establishing a full-fledged staff dedicated to handling different aspects of the business.
4. Be Ready to Lead a Low-Profile Life
Until you are established, managing a small business can be akin to leading a low-profile life. It’s best to avoid organizing a party at a posh 5-star beach resort for your clients and publishing big advertisements in leading newspapers. If you indulge in extravagances early on, you will run out of money very fast.
5. Become Skilled at Accounting
A part of your multi-tasking duties when managing a small business is going to require you to apply your accounting skills to manage cash flow and bank transactions (you can consider hiring a specialist service to manage the area of taxes.)
There are many avenues that offer tools vital to success for the prospective entrepreneurs. Look for good small business programs that offer extensive training to aspiring entrepreneurs.
Hard work, perseverance and determination pave the way for success in a small business. Be confident and optimistic and step forward to fulfill your dreams.
Roadmap to Success Photo via Shutterstock
I don’t consider myself an entrepreneur, but maybe I have strands of it as I’ve never been one for desk jobs, though I’ve done several in the past. They make me feel trapped. I prefer working for myself – more flexibility, freedom, choice.
Freedom to make choices with an independent approach is the best thing about working on your own.
You hit the nail on the head. For a successful entrepreneurship, the better leadership and management qualities matters the most. As the business & team grows, it is a big responsibility of managing the clients and team members. If you lack there, you may get a full stop on the business growth or maybe in the start?
Thanks Kumail! These two key skills combined with other essentials are the secrets to business success.
I agree with you Richard. Becoming skilled at Accounting is essential to track all the profits and loss of the business. You need to track the cost of materials, labor, courier services, shipment, consignment, import tax, and much more.
That is why I use an Excel Spreadsheet for all the financial calculations and be comfortable with using Formula for this purpose.
Not everyone wants to go through their books themselves or indeed know how to. So I guess an option could be to hire the services of a bookkeeper or accountant. Or go on a beginners course to learn the basics of business accounting.
There are options for each. You just need to choose the right one.
Thanks Diana! Before starting a business, it is important to develop strong accounting skills for accurate calculations.
Unfortunately I don’t have the means to rely on my business as my primary source of income. It’s probably held me back. But aside from that, I think I have all these steps down.
Hope, one day you strike gold with your business!
knowing you will face conflict and being prepared really helps.
Preparation is the best way to put up a strong fight.
It’s you who needs to perform the best possible way you could. I appreciate the guideline from Richard but deep inside I feel you also need sales skill. By that I mean, you need to develop the types of sales that will work best for your business and implement them. Besides you also need regular effort on improving your sales skills.
Thanks! Without sales skill, a businessman can hardly savor the taste of success.
Swapan Kumar Dey
I’m agree with you Richard. Becoming skilled at accounting is essential to track all the profits and loss of the business. You need to track the cost of materials, labor, courier services, shipment, consignment, import tax, and much more.
That is why I use an Excel sheet for all the financial calculations and be comfortable with using Formula for this purpose.
Not everyone wants to go through their books themselves or indeed know how to. So I guess an option could be to hire the services of a accountant. Or go on a beginners course to learn the basics of business accounting.
Thanks Swapan! I agree with you too.