In the U.S, around 600,000 businesses fail every year — and that’s without the crippling effect of the COVID-19 pandemic.
Aside from being passionate, it’s important to know the basics about running a business so you increase your chances of success. Perhaps you’re an entrepreneur or new to this game and you’re looking for inspiration.
Sounds like you? Don’t worry, you’ve come to the right place. Here are 11 tips to guide you.
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1. Keep Overheads Low at the Beginning
Every successful business knows how crucial it is to minimize overhead costs so you can turn a steady profit. This is especially key at the beginning where you may not have landed large clients or have solidified yourself as an industry expert.
So instead of renting an office, work from your kitchen table and find affordable ways to ship your products. Pro tip: open a separate business bank account so you can track how well you’re doing and prevent any mix-ups further down the line.
2. Understand Your Target Market
One of the top tips of business advice is understanding your market. Make sure you have concrete data on your target audience so you project the industry’s expected growth, demand, and current trends.
You should also figure out who your ideal buying persona is. This includes their age, income, and pain points which will be the basis of your marketing campaign and efforts.
3. Create a Detailed Business Plan
Before learning about managing a business, you must create a detailed business plan. It’s important to detail your financial goals every month and how much profit you need to stay afloat. As a general rule, make a chart for the next year and track your growth as it will show you key areas that need improvement.
A major mistake businesses make is borrowing money in the early stage of their venture. For instance, instead of applying for a large loan from a bank, grow your business organically by using your savings or salary from your full-time job.
4. Analyze Your Competition
Regardless of the industry, the best businesses know their competition inside-out. Don’t be afraid to snoop on successful competitors so you can see what they’re doing, whether it’s offering a customer referral program or improving their brand identity.
Plus, note any areas where your competitors are failing so you don’t make the same errors.
5. Build Your Online Presence
One in four small businesses still doesn’t have a website, which means they’re missing out on leads and not showing up in search results.
At the bare minimum, set up a business page on social media so you can engage customers and reach a larger audience. You should also produce valuable content, either as a video or blog post, as it shows you care about helping your audience while showing you’re a credible business.
6. Hire Experienced Employees
Before you flex your business management skills, hire a team of experienced employees. A sign of a brilliant boss is when they’re not afraid to surround themselves with experts in areas where you’re not.
Make sure you regularly ask your team for input and involve them in large business decisions, especially if it impacts them. This shows you respect your employee’s knowledge which will boost staff retention and create a healthy work environment.
7. Become a Great Leader
Don’t worry if you’re nervous about being a boss, especially if it’s your first time, as these skills can be learned. Take time to become a leader who is honest, empathetic, and takes accountability when your plan goes awry.
If you need inspiration, then check out a reputable organization like Ignitena.com, which will guide you through the process.
8. Network
Aside from prioritizing social media, you should also network as it will boost your business’s reputation. Always come equipped with business cards, attend networking events, and join online groups where you can share industry advice.
The secret about networking is it isn’t a sales pitch. Instead, you share advice and take interest in other businesses so the recipient has a positive association with your establishment.
9. Set-Up Passive Income Streams
There are many ways you can create a passive income stream, from harnessing the power of affiliate marketing to setting up a YouTube channel. This will be the lifeblood of your business and you’ll appreciate the extra monetary boost.
Other ways include writing an eBook on your industry and adding Google Adsense to your site.
10. Prioritize Customer Experience
No business survives unless it cares deeply about customer experience. This is the first impression prospects get with your business and the perception they receive of your brand.
The beauty about customer experience is it works both online and off. For instance, get your team members to greet prospects who walk through the door or invest in a chatbot so you’re available around the clock.
11. Offer Employee Benefits
Research has found that it costs businesses six to nine months’ salary to replace an employee. But aside from costing you a fortune, it also shows other employees that you’re not the best business to work for which ruins your reputation.
An easy way to prevent this is by offering employees benefits so they stay. For instance, give your team workers’ compensation or health insurance to show you care.
Running a Business the Right Way
Hopefully, after reading this article, you’re an expert in running a business.
Start by familiarizing yourself with your market, create a detailed business plan, and keep overhead costs low. You should then build an online presence, surround yourself with an expert team, and show customers that you’re the best business to invest in. Good luck!
Found this article helpful? If yes, then check out the rest of our blog for more tips and tricks.
