Four Principles That Will Keep Your Small Business Going
You might have had some success to this point, but how do you sustain your business in the long run?
You can achieve job security by working as your own boss, but it will require work and dedication. The following principles will help ensure that your business provides long-term economic stability.
Education. Learn from mentors, take classes, and experiment with better ways to do things. And remember to educate your customers. Communicate who you are and what you know, like this: “Looking for quality bike repairs? Come to Mike. He was mentored by the local race team and can help get your bike race-ready.” Customers care about what you can do for them.
Communication. Ask your employees about the business and how they think it could be improved. Encourage them to express their ideas openly, and express appreciation when they do. Ask your customers for feedback about your services and products.
Culture. Create a culture of trust and appreciation with your vendors and employees. When vendors know they are being treated fairly, they work harder to support your business goals. When employees know they are valued, their attitude rubs off on customers. And when customers are happy, business grows.
Finances. This principle is the most important. Sound finances are the fuel that keeps the motor going. Keep accurate reports so you know exactly how sales are doing, what your profit margins look like, and how well your advertising campaign is going. To make good business decisions, you need good information, and you need it weekly. Look for ways to cut your overhead without cutting quality or paychecks, like managing electricity, looking for deals on raw materials, or fixing older equipment instead of buying new. Borrow money only when you absolutely have to. If you do have to borrow, make sure you tie it to profits by accounting for it under the cost of goods.
Of course, there are many more ways to make sure your business continues to grow, but these four are particularly important. However, even if you follow all these principles, some challenges may just plain stump you. God wants you to take good care of your family, so don’t forget to make Him one of your advisers by going to Him in prayer. Ask him to lead you to people who can mentor you. Ask for the energy to solve problems. And express gratitude for the growth you and your business have experienced.