Top 10 tips to be more effective when running your business
Yeah, we all know that running your own business is hard work because you have to wear so many hats and put so many hours into it with no guarantee of reward. Below I quickly list the top 10 tips to be more effective when running your business.
1. Develop your goals and constantly review them
Sounds so cliche but successful business people always have clear goals and regularly track performance to meet those goals. Goals do change and evolve over time but its important to be clear about why you started your business, how you want to make a difference, who you want to sell your product or service to, how much money you want to make (no point of business in business otherwise) and how long you want to dedicate your time in the business. As simple as it may sound, sometimes the best way to do this is to write some simple bullet points either on a piece of paper or on a whiteboard near your workspace and regularly review the list to see whether you have reached your goals, what you need to do in order to reach them and whether they need to be amended.
2. Develop a routine
Break down your day into segments and dedicate time to each major task that you have to undertake. Then break down your week into segments to ensure that all the business tasks are managed weekly. For example, you may spend the first hour of every day reading emails and sorting them for action. Then you may spend the last hour of every day going through your ‘To-do’ list and crossing off items completed and adding items ready for the next day. You may want to spend 2 hours every Monday going through your accounts payable and making one batch payment a week. Developing a routine can help you break down your tasks, prioritise them and then action them so that you have a clear structure and you don’t spend your entire time chasing your tail.
4. Invest in technology
Seems pretty obvious but its surprising how few small businesses seek and implement appropriate technology to save time and help them grow. Having an efficient accounting software (like Xero!) can save so much time and headache. Make sure you have a professional website, email system, CRM (customer relationship management) system and marketing system. A lot are free or very low cost and the amount of time they can save is significant.
5. Maintain a regular cashflow forecast
You would have heard this so many times but its true – CASH IS KING. So many small businesses fail because of cashflow restrictions. The vast majority of those failure could be avoided with some simple cashflow forecasting. It doesn’t need to involve any complex spreadsheets or analysis. Keep it simple. Keep a notepad with a few columns for the coming weeks and then list your expected income from clients and estimated expenses. Businesses are usually cyclical and so cash can fluctuate significantly from week to week. As long as you keep track of what is coming in and what you need to pay, then you are in a far better position financially. A key element of cashflow forecasting is ensuring that you put aside a reasonable amount of money each week into a separate savings account to pay for your business BAS (GST and taxes withheld from wages) and tax.
6. Get a good accountant and lawyer
You cannot be in business and be successful without a good accountant and lawyer. They are worth their weight in gold. Good accountants can provide invaluable business advice that can save you time, money and interest/penalties. Good lawyers can provide invaluable legal advice about business structures, contractual arrangements and business protection strategies.
7. Maintain networks
Business is all about networking and keeping up to date with trends, threats, opportunities etc. You cannot run your business in isolation. Make sure you make time to maintain contact with key people in your network and arrange regular meetings.
8. Focus on new clients / new business opportunities
In our now fast paced culture, businesses have to keep up with the pace or face being left behind. Don’t become complacent and always strive for new business. There is no guarantee that your existing client base or product will continue to be lucrative for you business. Spend a little bit of time each day reaching out to potential new clients, developing new products or strategies to generate more income from your existing clients. Get on the phone, make contact and lay the foundation for future growth.
9. Attend events
Be in the know. Keeping up with advances is critical. Knowledge is power Get out there and attend business events, workshops, conferences and meetings.
10. Join and participate in professional groups
Professional groups can provide so much support and information. They also allow you to to connect with, learn from and bounce ideas around with like-minded people. Do a bit of research on the types of professional groups available in your industry or area of expertise and get in touch with them.