As a small business owner, you are constantly alert for new ways to grow and improve your company. You know that your business success depends on your ability to plan well and wisely and stave off potential problems. So, what are the guiding principles you should follow to maintain optimal performance? In this article, Jim Weber, Managing Partner of ITB Partners, reveals how successful entrepreneurs stay ahead of the game.
Be a planner.
Good business management is a continual cycle of planning. Before you even launched your company, you had to draw up a comprehensive business plan. And planning needs to be ongoing. Even if it feels as though your company can run on autopilot, it does not mean that you discard sound management practices. Your management system should include periodic financial forecasts with appropriate adjustments to remedy deficits to the plan. As Zenbusiness explains, failing to have a good plan in place is a common mistake that small businesses frequently encounter. So, avoid this pitfall by having everything organized and mapped out.
Be a Leader.
Your leadership skills may be the most critical part of successful management. No matter how great your vision, no matter how positive your workplace culture is, it is not possible for a company to thrive in the long term if it lacks clarity, discipline, and recognition. Poor leadership tends to trickle down from management into every part of a business, with devastating effects. You can maintain a high level of performance by using business technologies that help you schedule tasks, manage projects, keep track of inventory, communicate with team members, and recognize desired behavior.
Be a listener.
Have you ever had the experience of dealing with someone who didn’t seem to be listening when you spoke with them? Or someone who never seemed to embrace your message? If so, you know how frustrating this can be, whether in business or your personal life. Don’t be that person: make a point of listening to what your partners, advisors, clients, and team members have to say. Practice active listening, addressing their questions or observations directly. Active listening fosters a culture of creativity and responsibility. Make a sincere effort to hear, respect, and understand your team’s concerns.
Be flexible.
The logical progression for a leader is the willingness to change when necessary. Click To Tweet Change can be difficult when you are committed to a belief system or a particular course of action. And no, you shouldn’t deviate from your plan for just any minor issue. When it becomes clear that your goals are at risk, altering your plans is good management. Remember, good leadership means owning and correcting your mistakes.
Be current.
Good management also means staying abreast of current trends in finance, marketing, and technology. Business intelligence must be a team effort. As professionals, each of your department heads should be current in their field. They should share their learning, and you should update the company’s plans accordingly. As their leader, you must ensure that your team has access to high-quality information and resources to perform at peak capacity.
Be a good Corporate Citizen.
Failure to follow the laws and regulations that govern business activity can be costly. As a leader, you must work within the framework of employment law, permitting, licensing, taxation, among others, to ensure the success of your business. One area where new business owners risk expensive fines and penalties is in payroll tax compliance. Minimize this risk by using a sound payroll system with competent oversight. It’s also essential to choose the proper legal structure for your business. For many small business owners, a limited liability company makes the most sense, as it reduces paperwork and may yield tax savings. Save time and avoid added expenses by having an online service register your company as an LLC. Your lawyer and accountant can guide you in this area.
Think of good business practices as pillars supporting your business. Make sure your whole company understands and embraces these principles. By doing so, you will improve the likelihood of continued success and increased profitability.
Derek Goodman
derek.goodman@inbizability.com
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Jim Weber – Managing Partner, ITB Partners
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