No matter the size of a business, it must have an administrative and management regime. Small businesses will be structured quite differently from their larger counterparts, and there will have their own particular administrative requirements.
One important aspect a small business must deal with is cash flow. Cash flow is the life blood of any enterprise, as it is the amount of money that keeps your business operating, so it is crucial that is handled efficiently. It is good practice to over estimate what your operating expenses- the amount its takes to run the business – will be, while underestimating the amount of cash – income -you have coming in. Also keep cash aside for any expected expenses. It is also good practice to regularly revise your budget and then stick to it.
Another way to successfully manage a small business is to keep a close eye on the inventory or stock. While it is important to carry enough stock, having too much is merely tying your money up. Calculate just how many sales are likely to be made over a given period, and never maintain a stock surplus of more than 25 percent.
Marketing is crucial so should be a major part of the management of any small business. Marketing is very much a 24/7 project as it will ensure your business is kept in the minds of the public. You should allocate a proportion of your budget towards marketing which could include press advertising and flyers. The Internet is becoming increasingly important in the world of marketing, both nationally and internationally, and depending on the size and location of your market, should be considered as part of your strategy.
You should also carefully target your market – know who and where your customers are. If your publicity and advertising campaigns are failing to get a response, you are targeting the wrong people. Do some research, find out exactly where your most lucrative market lies and then get to know it.
It is imperative that you keep up to date with your books and finances. This will ensure you are in control of cash flow. Ensure that you are paid promptly by customers and that all invoices and receipts are kept in an orderly manner.
Reputations are everything, so ensure the reputation of your small business always presents itself in the best possible manner. If customers visit your business premises, ensure they are seen to be presentable and a hive of efficiency.