Management - Managing a business independently: important points to know and how to avoid common mistakes

5 Steps to Success in Running a Business

Step 1: Prepare a detailed business plan that will define in a simple and clear manner the steps and objectives of the business and its managers. The business plan should address several business aspects, including the economic, financial, strategic and marketing aspects. The plan should be operative and easy to implement and give an overall view of the business and its management.
Step 2: Determine a reasonable work plan and realistic timetables for implementing the business plan, so that we can meet the goals we set for ourselves in the previous phase and spend as little time as possible. It is very important that the work plan to be determined will be such that it can be implemented and that supervision will be conducted and an inspection will be carried out to determine if the plan is implemented properly and according to the manager's definitions.
Step 3: A constant striving to increase profits and revenues. In managing a small business independently the manager must try to increase the income (and consequently the profits) of the business on a regular basis. Proper management of a business will ensure that its revenues are not dependent on one product only. Try to increase the number of products sold as much as possible thereby reducing risks (do not put all eggs in one basket!). Furthermore, on the marketing side, it is important to ensure that the business is published in a number of different media in order to increase exposure. This is especially true when you go to market with a new product and want to launch it.
This is the place to note that sometimes there is a possibility of merging or collaborating with other businesses in the field. It is important to carefully examine the implications of such a move before making a decision and making sure that it does not harm our business in the long term. The same is true for entering a new area of ​​activity.
Step 4: Minimize costs and reduce business expenses to a minimum. It is recommended to examine on a weekly basis (or at least monthly) whether and where costs can be reduced. When you run a business it is important to be constantly on the pulse and make sure that we do not spend unnecessary money.
In dealing with suppliers, it is always better to work with several suppliers at the same time and negotiate correctly. Thus we also neutralize the dependence on a specific supplier and are also able to compare prices between the various suppliers in order to allow ourselves to order from the supplier with the lowest price. Remember, a bad monopoly for consumers!
With regard to inventory management, it is recommended to manage it in a responsible and controlled manner and to set up a specific employee in the business to manage inventory as a primary function. Thus we can ensure optimal inventory retention. (Not too much and not too little).
Step 5: Looking at the business reports One of the important aspects of running a business is whether you run a small, medium or large business, the manager must know how to read the various business reports that exist in each business. These reports include three main items: the profit and loss report, the business balance sheet and the cash flow report, and each manager must analyze and understand these reports and use them when necessary. Of course, most businesses today have an accountant who does this, but it is also necessary that the business manager is involved and knowledgeable about them.

5 The most common errors that managers and business owners make

A false assessment of the capital and cash flow needed by the business: You set up a new business and you have an innovative and groundbreaking product, but you do not have sufficient equity to maintain and operate the business until the sales begin to flow on a large scale and you have not raised enough capital at the beginning of the process. And then what happens? The business can not survive in the first months of life and it crashes before revenue begins to flow in. It is important to plan the capital raising and cash flow in an organized manner that the business will need during the initial stages of construction and consolidation.

The (mistaken) belief that we know everything and the best and that no one else can advise us or renew us about our business. Even the most talented manager in the market can not run a business entirely and needs occasional advice from an outsider, a business consultant or someone with a broader perspective who is not personally and emotionally involved in managing the business. Remember, those who manage alone have failed on their own!

Complacency: Managing a small business, especially an independent business, is very dynamic. It is important to feel the market and the business environment all the time and not to stagnate since the potential for changes in the market in which we operate or that one of our competitors will take away a market share of one or the other exists at all times.

Getting sucked in: Establishing a new business and managing it is not a simple task at all, which can sometimes suck the business owner in and not let him out. Most business owners will spend a lot of time from their day when the business is in its early days and may neglect important things like family, leisure, etc. Do not be tempted to invest all your time solely in your venture and leave plenty of time for other activities.

Lifting hands after a short time: We will reveal to you a secret, not all business in the economy succeed. In fact, data show that less than half of the new businesses in manage to survive the first year of activity. Sometimes it happens that you do not go and the owner of the business is facing a crossroads: give up and fold the business or continue to try to rehabilitate it. Of course, there is no unequivocal answer, and each case needs to be examined on its merits, but in both cases, it is desirable and even necessary to consult with an outside party regarding the business and where it is worthwhile to take it from here.

A respectable position in the business world of today

It seems that everywhere in the world it is not really simple to run a particular business. Both small and medium and large businesses can encounter the most complex challenges such as motivating employees, marketing and distribution, logistics, procurement, financing and other elements without which it is impossible to create real success in any business. That's why we see more and more people realize that running a business requires recruiting all the relevant resources, but it is also very important to get advice from a talented person who is familiar with all aspects of the business.
The great dynamism of the business world, the state of the Israeli economy that changes and can sometimes be very restrictive, the importance of matching needs and expectations with results, and other important components can show every business owner how much advice a business consultant can use. Each individual is on the way to managing the right and profitable business. Thus, business management of any kind can become much more focused and such that the sense of extraction of the business owner will be as high as possible.

Business management - the professional approach to the concept stage

When we talk about high-level business consulting, we can immediately identify how those who offer such a service and know-how to relate everything from the base to the various activities of the business can offer a professional consulting package of running a business. This is mainly because a good business consultant will be able to check with the business owner his ideas both in terms of opening the business itself and in everything related to the business and marketing moves he intends to perform in the business.
Thus, whether it is a search for a specific field or place to open a business, or whether it is expanding the business, introducing a partner, raising capital, joining employees or anything else, the business consultant can explain some important things about financial data, Employees, partner testing, and more. The result of such moves is the most focused and important formulation of the business and creating a balanced and safe way of carrying out critical steps that will prevent the business risk, its failure and the losses that may be expected from it.

Start a business correctly

Anyone who has tried to start a business in the past and who runs a business at the beginning of his career can tell how simple it is not to start a business in Israel and how difficult it is to become a successful business. Managing business in Israel is a task that can be debilitating and not exhaustive if you do not work correctly not only at the idea stage but throughout the process. This means that even after many years of business activity, changes in the market, such as financial restrictions on the part of the establishment, increasing competition and other problems, require wise conduct.
Therefore, running a business that is carried out with high-level business advice can make it easier for every business owner because there is a reference to all the elements that make up the operation of the business and to everything that the market presents at any point in time. This makes it easier to choose suppliers that can work more efficiently and efficiently with the business. It is easier to know how to charge money from each customer. It is easier to find suitable financing options. It is easier to think of an efficient way to motivate employees. For Business.

ArielAharoni.com