11 Business Tips EveryOne Should Know
The biggest problem investitors and small business owners have is that they’re experts in their field and don’t have all what it really takes to effectively run a business. That’s what usually trips them up, sooner or later.
Don’t let that happen to you! Admit that you don’t know everything about business, starting with these 11 tips guaranteed to help keep you and your company out of problems. Some are straightforward, others are counterintuitive, but they’re all true. And some day they’ll save your butt!!
1.Cash is king.
Always make sure there is and will be enough cash in the bank.The most common business-failure mode, hands down, is running out of cash. If you know you’ve got a cash flow or liquidity problem coming up, fix it now.
2.You can’t fire bad employees fast enough.
You just can’t. Just make sure you know they’re the problem, not you.Because you should learn that 90 percent of all problems are management problems. When things aren’t going well, the first place to look for answers is in the mirror.
3.Delegate and trust.
For a business to grow and be healthy, the owner has to trust his or her employees.You have to rely on the fact that you can train someone, and that he or she will put his or her heart and soul into the business as much as you would. If you don’t have that trust, it won’t work.”
4.Say “yes” and “no” a lot.
The two most important words business owners and founders have at their disposal are “yes” and “no.” Learn to say them a lot. And that means being decisive. The most important reason to focus – to be clear on what your company does – is to be clear on all the things it doesn’t do.
5.Listen to your customers.
One of the greatest qualities for a professional is valuing their customers.Customers feedback and input are among the most critical information that you will ever learn in order to succeed.
6.Character is key when hiring new employees.
In many companies, the person who talks the best usually gets the job.But this have changed.Try to pick somebody who has classic virtues such as integrity, honesty, courage, love, and wisdom.
7.Keep in mind: meritocracy and nepotism.
The first is how you run an organization – by recognizing, rewarding, and compensating based solely on ability and achievement. The second is how you don’t run an organization – by playing favorites and being biased.
8.Always be informed about your finances.
If you don’t know your revenues, expenses, capital requirements, profits (gross and net), debt, cash flow, and effective tax rate – among other things – you’re asking for trouble. Big trouble.
Leading a business is hard work, but after you open your doors, your work has just begun. In many cases, you have to put in more time than you would if you were working for someone else. In turn, you have to make sacrifices, such as spending less time with family and friends in order to be successful.
10.Trust your gut.
This phrase is often repeated but rarely understood. It means that your own instincts are an extremely valuable decision-making tool. Too often we end up saying in retrospect and with regret, “Damn, I knew that was a bad idea.” But the key is to know how to access your instincts. Just sit, be quiet, and listen to yourself.
11.Run your business like a business.
Far too many entrepreneurs run their business like an extension of their personal finances. Bad idea. Very bad idea. Construct the right business entity and keep it separate from your personal life.