It is not easy to manage a small business but here are a few tips that may help as reminders of key elements to think about to enhance success:
1. Prioritize Planning
Owners of make key decisions in the heat of the battle without a definite plan. This is especially important if the business is growing fast. A plan that outlines your current position in the market, your longer range goals, and potential roadblocks will help avoid potential disasters.
2. Monitor Competition
No matter the level of success, owners should be aware of competitor’s activity, strengths and weaknesses. Work to find ways to differentiate.
3. Grow with your Customers
Do not become too dependent on a few customers. Work closely with customers to exploit their needs but also expand the customer base to minimize risk of business loss if a key customer is lost.
4. Manage Margins
Growing the top line is nice but growing the bottom line is better. If a product or service is unprofitable it should be eliminated if possible.
5. Plan cash Flow
Owners should be keenly aware of cash flow and should not delegate cash flow management to an outside accountant. Track flow of cash in and out so you know your daily needs and can respond quickly to the marketplace if necessary.
These are just a few ideas that may merit consideration and I hope they are useful in helping owners manage their business. Let me have your thoughts.
gerry@polarisgroupmc.com
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