Managing a small business can be a difficult undertaking. There are many moving parts involved in running a business, and many problems may occur. Inexperienced entrepreneurs may find that they need help in dealing with the basic aspects of running their businesses.
Perry Adam Lieber, a fitness entrepreneur from Santa Barbara, CA, offers his top nine tips for people who are managing a small business.
1. Incorporate Your Business
No matter how small your business may be, it is a good idea to incorporate as an LLC or similar business structure. This separates your business fortunes from your personal affairs and helps to protect you against lawsuits that target your personal property.
Incorporating a business is relatively easy, depending on the jurisdiction in which you live. Getting an experienced business attorney’s help is a good idea, but you can complete the process yourself if you are reluctant to hire an attorney.
2. Separate Personal and Business Finances
This is one of the most important considerations that a new business owner should follow. After you have established a separate legal entity, you should open bank accounts specifically for your business. Make sure that you have a robust accounting system to keep these expenses separate. Work on building your business’s credit so you can access business credit cards or bank financing. Never put work expenses on a personal credit card.
3. Get Help With Financials
Financial planning for a small business of any size can be daunting. Perry Adam Lieber recommends hiring professional help to assist you with setting up your business’s financials and maintaining them as the years go by. Hiring a CPA can help you make sure that your books are clean, that your taxes are well-prepared, and that you are fully aware of any financial issues that may occur.
4. Hire the Right Employees
Hiring can be another hurdle for new business owners. Many people are tempted to hire their friends and family, but it is best to concentrate on hiring professionals in your field. These people will work harder for you, and they will not try to take advantage of your relationship to get ahead at work.
5. Set Up a Positive Company Culture
Before you hire any employees, it is the perfect time to set up a positive company culture. Company culture is defined as how your company interacts with employees, clients, and the world. A positive company culture encourages workers to dedicate themselves to your success.
One of the most important considerations when creating a solid company culture is putting your closely held values on paper. Commit to running your business in accordance with these values, and you will create a culture that will reduce employee turnover and make your employees happy.
6. Train Employees Well
Employees need to be trained in how to do their jobs. Investing in training is one of the best startup costs you can incur. For example, your company may need to use specific software to accomplish its goals. Your employees should know how to use this software rather than being left to figure it out for themselves. This will make them more efficient and less frustrated with their jobs.
7. Don’t Forget to Invest in Marketing
Marketing is key for every business. Without customers, no business can thrive. Concentrate on digital and social media marketing since these are the most useful and cost-effective methods in today’s business world. You may need to hire a specialized firm to help you with SEO (search engine optimization) and social media marketing, but this money will be well-spent.
8. Stay On Top of Taxes
One of the most crucial aspects of running a small business is keeping on top of your taxes. If you fail to pay your taxes on time, you will incur penalties and may be vulnerable to punitive action by the IRS. Make sure that your taxes are paid quarterly, including estimated taxes, if paid with a 1099 form as a freelancer.
9. Maintain Work-Life Balance
While meeting all of these demands, it may be easy to let your personal life slip through the cracks. It is important to the success of your business that you take the time to nurture yourself and your personal relationships. Too many families are damaged by parents who work too much and lose touch with their loved ones. In addition to overwork’s effect on your family, it can also damage your physical and mental health.
Be sure to take time off work when you have the chance. Eat well and exercise five times per week if possible. Exercise will help you deal with stress and give you the stamina to endure the difficulties of running a small business.
Becoming a Successful Business Owner
Taking these nine tips from Perry Adam Lieber into account will make it easier to run your small business. Perry Adam Lieber encourages all business owners to research these points and find out what they can do to enhance their business’s prospects.