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5 of the Top Tips Every Business Owner Should Know
Whenever someone starts a business and hasn't done something like this in the past, there are some things they will need to know, and not all of them will be happy thoughts and rainbows lol. Running a business isn't the easiest thing to do in the world because if it were, then everyone would be doing it. A company is pretty difficult to run properly if you're not abiding by these five tips I'm about to cover, and that's because you could crumble from the inside and never be able to rebound.
Businesses are easy to start, challenging to manage, and almost impossible to make super successful compared to how many people have failed before you. Around 10% of businesses fail within their first 1-2 years, 50% of businesses fail within their first five years, and 60%-70% of businesses fail within their first ten years. This means you have the odds stacked against you, and it's essential that you follow these five simple tips I've provided for you below.
#1. Always have money in the bank
Never deplete your bank account to purchase new equipment, pay bonuses, or buy something that you can put off for another week. You never want to drain your account because you can't see into the future and determine how much money you're going to be making. You don't know how your sales will fluctuate, and that means if you hit a dry spell, then your business is now at risk because you just spent all of your savings.
Money management is the main reason businesses fail in the early stages of their lives. You could have the absolute best idea within your industry, execute a flawless marketing plan, and generate millions of dollars in sales but if you don't save money for a rainy day, then you'll notice your business drowning in debt and that's never a good thing when you have to talk with an accountant.
Just save money and think of it as untouchable by anyone. If you can do this, you'll be able to bounce back from profit droughts and sales drops
#2. Fire bad employees quickly
You need to think of bad employees as cancerous and they will decay the moral of everyone they come in contact with. These people could have a negative look on life or they could be bad at the entire job. You're not their friend, you're their boss, and that means you need to look out for your company first.
Some of your top salespeople likely need to be fired due to their lack of integrity and how they carry themselves around the office. Gary V. once said that you should fire arrogant and cocky members of your team, regardless of how much money they're making you because they will bring you down in the long run. Their actions and words can bring down the morale of the entire office and that means lower performance across the board because of one specific person.
Fire them. Increase moral. Have less stress around the office.
#3. Listen to what your customers are saying
Many times I've noticed a business doing whatever they want and not listening to a customer's recommendations. One of the most significant flaws of a company is when they don't listen to customers, and that's because they distance themselves from the people who are giving them money, and that means you'll miss a lot of little things like bug reports and feature suggestions that many people might want.
It's common practice to talk with customers whenever they want to chat, and that means you need a live chat feature, a knowledge base, and a ticket system so people can talk with you as quickly as possible or get answers to their questions without having to send you an email.
Treat your customers and visitors like they're the ones who are making you money because they are.
#4. Take care of your top performers
Now, if you've made it this far and you've already fired the people who were hurting your overall morale, regardless of them being top performers, you should reward the people who are making your company better.
This doesn't mean that you should focus on the salespeople who are bringing in the customers. You should take care of your receptionists who are coming in 10 minutes early and are willing to work overtime, your managers who are working 50+ hours a week without complaining, and anyone who is excelling at their job because they love what they're doing.
The more people you boost up and take care of, the better your company will function, and the more likely they will stick around even if they get an offer from a competitor that comes with better pay
#5. Run your business like a business, not a hobby
If you're starting a business, then you should be the boss and run it like one. Sure, you could be in the hobby niche and sell hand made blankets, but you're making a profit, and that means you need to take this seriously. Too many businesses get lazy when it becomes comfortable and that means you're leaving yourself open to being taken over by competitors.
Watch your finances, monitor your traffic, manage your sales, and do everything you possibly can to keep your business running like a well-oiled machine. If you can do this, you will see your company grow from a startup that no one knew of to a full-fledged business that is credible and people flood to.
If you've made it this far through my discussion, you may think I'm being too stern or mean, but that's what it takes if you want to run a successful business, and you won't make it far unless you're following the five tips I've listed above. Fire the toxic people, reward the ones who excel, save money whenever you can, listen to your customers, and always run your business like a boss and not a hobbyist.
Thanks for reading