When I started my first business, I had no idea what I was doing. Fresh from the pool, with absolutely no experience, I had never had a job, let alone run an entire business- I felt like I was drowning! Looking back, there are a few pieces of advice I wish that I had been given. Tips and tricks that help bridge the information gap that currently exists between entrepreneurs and successful business management. In their 2014 Business Barometer survey, First Class Accounts showed that 43% of small business owners struggle to find relevant advice when they’re starting out, with the general belief being that most of the available advice caters to larger companies, or that relevant information is difficult to find. In an attempt to rectify this problem, I have put together a list of ‘must dos’ and ‘must knows’ that I wish someone had told me when I was starting out.
- Create a business plan — So many small business owners (myself included!) jump into business feet first with both eyes closed. By creating a business plan, even a simple one, you ensure that you will be operating as efficiently as possible and avoiding unnecessary time wasting mistakes. There are many excellent templates free online for business plans (go to www.firstclassaccounts.com/blog for links) so there is no excuse to not get one done! It will take some time now, but is well worth it in the long run.
- Get the right structure — There are a range of ways you can set up your business structure; from a sole trader to a company or Trust. You need to seek professional advice for this as how you plan to remunerate yourself, what existing assets you have and how you plan to cash-roll your business will all contribute to what structure would be best. Getting it wrong initially can cost you in the future by incurring fees to change your ownership structure later. An accountant is a good starting point for these decisions.
- Get a bookkeeper — The most important and most difficult part of running your own business is keeping your finances in good shape. You can have a fantastic product, a great location and a thousand customers a day, but if you lose track of your finances your business will crumble. Since I got involved with First Class Accounts I have been able to stop worrying about my books, and as a result have more time to concentrate on bettering my business. First Class Accounts also provide me with practical advice for my annual business plan (see tip #1!), as they can project my finances for the coming year, allowing me to plan my budget accordingly.
- Technology is your friend! — No matter what your business, there will be technology that will help make your life easier. As well as this, customers expect a quality online experience from you, whether that be via a website, online store or social media presence. Do your research into what is expected for your field, and if you don’t already have the skills, get educated. Social media in particular is a fantastic, low cost opportunity for marketing, and is the first port of call for many customers looking for information on your business.
- Reassess often — Reviewing different elements of your business regularly guarantees that your business is running as efficiently as possible. The most vital area for frequent reassessment is definitely costs, as ultimately, this will determine if your business floats or sinks. The First Class Accounts Business Barometer revealed that 28% of business owners want assistance with their cash flow. This can be achieved by having regular conversations with your bookkeeper. It’s not just costs however – product range, location, HR and marketing strategies… Just about every aspect of your business will benefit from a regular check up.
- Stop and smell the roses — Business ownership is hard work. So, while I know it sounds contradictory, occasionally you need to stop and take a break. Especially in these days of smart phones and internet when we are all constantly accessible, it is easy to get completely absorbed in your work.
As a working mum, I have had to work to find a balance between being a business owner and a Mum, as well as being a wife, a friend, an individual, plus all of the hundred other titles we take on in life. It’s not always easy, but it means I still enjoy every role I fill. Keep these six top tips in mind and your small business will be in a great position not just as you get started, but in the future too.
