3 Things You Should Do When In Business
Create a business plan.
This usually is one of the things that look like the most tedious for a lot of people, but at the same time it is a really important part in starting a business or even running an already existing one.
What I remember from my classes is that in order to create a business plan, I had to follow strict instructions and cover certain points. While it might be true that there are certain areas that need to be explored, it’s up to the entrepreneur to decide what their business plan would look like.
Start with the idea you have and just put it in words on a piece of paper. Think about all the detail that you are envisioning and add them to the description. If your thoughts are a jumble and you are afraid you might forget what you just have come up with, jot down your ideas as bullet points and add key. Then, elaborate on each bullet point until you can clearly see your business - how is it going to operate, who your clients would be, what would make it unique and successful. At the end, you are probably not going to have a professional looking business plan, but that’s a great start.
Creating a business plan for your already existing business has a few advantages as well. If your vision and the reality are different, it might help you realize how to change so you can achieve what you really want. Or if you are planning on expanding, that would be much easier with guidelines and clear understanding of what your vision is.
Separate your personal from your business expenses
This is a common mistake especially for small business owners. They tend to have informal financials and not keep track of what they spend for the business. It might not look like a big deal, especially if you are just starting, or your business is really small, but if you know how much you are spending for your business, you can calculate what your profit is. Sometimes it might turn out that you are not making any money and it will be better to not be in business at all. On the other hand, you might get a better idea what your problem is and come up with a way to make profit. Knowing your expenses is extremely important because it will allow you to create profit and loss statements, future projections, plan your inventory and it would be easier to get a loan.
The people from my generation are very familiar with internet, search engines and social media. They know how to use and utilize these tools, and that can be a tremendous help when staring and running a business. Our parents or grandparents, on the other hand are not so familiar with new technology. I know it’s hard to imagine being in their situation, but who knows what the future holds. Today, we have more scientists than ever before, so they might invent or discover something that we can’t even imagine. They key is to keep learning and be open to new ideas.
Except learning about new technology, it’s really important to keep educating ourselves on topics that are closely related to business like Accounting, Finance, Management, etc. Not everyone studied Economics, and that’s ok, as long as you are willing to learn. It is true that you can hire a specialist, but it is really hard to afford it in the beginning and even if you can afford it, it is good to be able to understand what these people are doing. Find classes online, go to workshops, ask friends, because being a business owner means that you know your company in and out.