Running a business isn’t easy and every small business owner has to face several challenges to get their business off the ground. However, that shouldn’t stop you from pursuing your dream. Challenges and disappointments are a part and parcel of running your own business.
That’s the thrill of being an entrepreneur. But you need to keep some practical advises in mind if you want to safely navigate these murky waters. Far too many business owners see failure and massive financial and personal losses because they’re not careful. So here are some points to remember.
Keep an Eye on the Cash
This can’t be emphasised often enough. Often times, people worry about setting up the business first and worrying about cash later. As a small business owner the worst thing you can do is to allow your business accounts to run out rather than pulling back the expenses a little and re-evaluating your finances. Always keep an eye on how much money you have in your business account and keep you business account and your personal account separate.
If you see your cash depleting, start looking at temporary fixes and put a halt to some major expenses for a while. Once your account is stable, take time to evaluate why you’re facing a cash flow problem and try to address it. Never let the money run out.
Don’t Retain Bad Employees
In India, we don’t like to fire people. In fact, there are several examples of business owners running their businesses to the ground because they retained bad employees. Naturally, that’s not a good idea because that doesn’t just compromise your livelihood but also of the employees that do perform well.
The overall health of your company is more important than few employees. That’s not to say that you should fire people willy-nilly. The best ways to avoid bad employees is to improve and optimize your recruiting policies and techniques.
Get off Your High Horse
Business owners and employers need to understand that their employees are neither their children nor their pets. Expecting your employees to jump when you ask them to and salute when you pass by is the worst thing you can do for your business. Stringent hierarchy has a way of stifling creativity and individual contribution.
It’s a far better idea to cultivate an environment of mutual respect and appreciation. You need to value you employees’ input and your employees will appreciate being a part of a work culture where their skills are respected.
There are two kinds of employees. Those who have merit, contribute towards the success of your business, and those who flatter your ego but do nothing worthwhile. You need to stay clear of the latter and reward the former. Today, recognizing and rewarding merit over every other criterion is vitally important.
It would also help you business as your employees would know you appreciate them because of how they perform and contribute. That would compel them to always perform well. If you keep these things in mind, you’re off to a good start. There are, of course, several other things involved in business, but these are the basics that you need to pay attention to.