Since my last blog, you may have been busy writing up your business plan and implementing the various operational/office systems, financial and marketing strategies. Congratulations!!
As you know your business plan provides you with a clear focus of where your business is now, where it is going, how it will get there and whether it got there.
Now it is time to look at how to effectively run your business.
Running your own business requires you to be an effective manager as well as an effective provider of services or goods that your business supplies. Generally, managing your business entails implementing the key elements of your business plan – operations/office systems, finances, marketing and monitoring your business.
Let’s take a closer look at each of the elements that contribute to effectively manage your business.
The following questions may help you identify the information you want to capture:
Once you have this information you can decide how it will be recorded, communicated and stored.
Will you use a manual or electronic system and purchase specific software? This decision will depend on your financial situation and your individual business needs.
Knowing your expected expenses for the year provides you with useful information about how much income you need to earn from your business to break even and to earn an income.
By comparing, each month, your actual cash flow with your projected cash flow you can see if your business is tracking financially as planned or needs some fine tuning. Examples of fine tuning may be that you delay employing staff in the short term.
Managing your marketing strategies also includes working out which strategies work. This can be a matter of trial and error. Recording details of the performance of each strategy can help you refine your marketing messages and work out which strategies are right for your business.
The following questions may be useful in reviewing the progress of your business:
Many government agencies including the ATO, www.business.gov.au and www.buisness.qld.gov.au provide further information to help you understand how to manage your business.
It may also be useful to obtain professional advice as to whether you are a hobby or a business from a solicitor, an accountant or a business advisor.
Why not make a complementary consultation with me today to go through with you how to better manage your business such as: