Let me be honest with you ………… some of the things on this list I’ve learned the hard way. Some came to me very naturally and others I’ve learned by observing countless entrepreneurs building their business.
Here are five things that you need to start doing to be successful.
Maintain Positive Cash Flow
I don’t know about you, but I am a big fan of the TV show “The Shark Tank.” I love seeing people that overcame all odds and built a company from the ground up in their living room. However, a lot of them have no idea how to manage their cash.
I see this scenario all too often with my clients too. They have a product or service, they like good margins and substantial profit. But, when I ask them how much is left in the bank, they give me a ridiculous amount. Translation: they’re barely making it paycheck to paycheck.
You must have a good understanding of the levers in your business that can affect cash flow if you want to learn how to manage it. Inventory payments, collections, supply price fluctuations, and employee spending are among the things that can impact your business.
That leads us to the next point.
Know Your Numbers
How much does it cost you to acquire a customer? How much budget does each social media channel require? Do you know the margins on all your products and services?
You can’t build a business by counting on listening to your gut on all big decisions. This trick may work once or twice, but the truth of the matter is that the entrepreneurs that succeed are the ones that are meticulous and know their KPIs (Key Performance Indicators) by heart.
Focus On Attracting And Hiring Talent
Here’s a line that sounds like something you would read in a human resources specialist’s office ……. your employees are the life and blood of your business. And, it’s the truth. No matter how dedicated you are to growing your company, you can’t do everything by yourself.
Focus on developing a company culture that attracts talent. Think about your employees’ needs and try to provide them with opportunities for growth. Help them develop their skills, allow flexibility, and encourage them to share their ideas with you.
Every diligent entrepreneur knows that they must have a business plan to guide them through their journey. The problem is that they draft the document in the early stages, then lock it in a drawer and completely forget about it.
Your business is like a living organism ……. it grows and evolves and your business plan should too. Moreover, updating your plan to meet the current reality of your company will allow you to see possible hurdles and make the necessary adjustments before you run into bigger problems.
Practice Social Listening
Your business may only operate from Monday until Friday at 6 PM, but your customers are always on. And, if they had a bad experience, they will complain about it online regardless of the time and day. You need to be there to do damage control and minimize the problem before it snowballs.
I’m not saying that you should refresh your Facebook page every five minutes and Google your company ten times per day. But, you could set up Google Alerts to know when someone is mentioning your business online.
Instead Of A Conclusion
There’s one more piece of advice that I would like to give …….. try to think about the greater good. Consumers nowadays are conscious about their impact on the world and they expect companies to have a higher purpose than just turning a profit. So, try to commit to a cause that you believe in and are passionate about and make a difference in the world. No pressure, though. 🙂
I’ve seen lots of entrepreneurs struggling with these aspects of their business. If you’re stuck in these areas in any of these areas, don’t hesitate to reach out.