For the Smaller Business Owner

Its yours. You were handed the keys, and after a long wait (finance requirements, due diligence, training etc) you are now ultimately responsible for how your business purchase pans out. At the end of the month, a mere 30 days away, the staff salaries, rent, vat & tax, stock orders and sundry other expenses will be yours and yours alone. For many small business owners, a daily monitoring of the bank account becomes par for the course, as you wait for those deposits to reach your break-even point. Once achieved, the rest is yours…..or is it?

It is beyond tempting to start spending: why not, the cash is in your account after all? Fatal mistake no 1. It is vital, especially if you have started off with limited working capital, to build up a slush fund – profit you can use for emergencies and unexpected expenses. It is only as you become experienced that you will start to understand your market, what sells, what is demanded and so on. If you don’t have the correct stock, you won’t have the sales. Keep money aside in case you need to invest in additional products - if your initial ordering wasn’t spot – on (a common mistake for the new business owner), you may need to do an additional order. I don’t mean go out and over-stock your business, but monitor things carefully.

I have done it before, and I am sure I am not alone in making such a rookie mistake: holding back on advertising because you “can’t afford it”. Without public awareness and a demand being created for your products/services you won’t remain in business. Work out your advertising budget and stick to it. Make sure you have a minimum you spend on a monthly basis, and treat this as an important, legitimate expense. If you need to pay someone to draw up your ads for you, do so. The more professionally presented your marketing, the better it reflects on the business. The same can be said for your website. I have struggled to set up my own site – but in all honesty, the time wasted on coming to grips with the programmes (and coaxing out a creative streak in an otherwise uncreative personality) could have been more productively spent elsewhere.

Good luck in Business and don’t forget to enjoy what you do!!