One of the best things you can do when you are starting a new business is to save as much money as possible before you quit your day job. Having enough money put away for a business start up and your living expenses for a year or two, will ease the stress of paying off loans when you aren’t in a break even situation yet. It can take a couple years to start making regular profits!
But now that you are up and running, what should you be doing to keep it going successfully? Here are some tips for running a small business:
- Instead of hiring permanent employees before you can give them a full day’s work, use temporaries or independent contractors until you are going well. It is much easier to think small and grow than it is to think big and go broke.
- If you can begin your business at home or in the garage, do so…move to leased or puchased space after you are making solid profits.
- Keep your personal assets separate from your business…gambling on the success of your business is necessary…losing your home and your car is not.
- Get business liability insurance. One lawsuit can end all your dreams.
- Strive to stay ahead of your competition by having lower prices, better service, a better location, and better incentives.
- Always back up your agreements on paper. Contracts are very important, as oral agreements are impossible to prove.
- Try always to hire very good employees. One competent, efficient, and honest employee is worth two that wish they were somewhere else. Happy employees are loyal employees.
- Pay your taxes in a timely manner, and always pay your bills on time…or early, if you can manage it.
- Stay positive. This is going to take a while to happen, and it is going to be stressful and exhausting. If you stay positive, your employees will too, and that will make for confidant customers.
- Don’t get cocky when you begin to break even. You need to reinvest most of that money right back into the business. You may need more space, more product on the shelves, newer equipment, full time or more employees, and perhaps some giveaways to assure return customers.