The reality for many small business owners is that they are forced to start something of themselves. Maybe they are taken into account, fired or can’t find a job.
What this means is that often small business owners really don’t even have time to get some training in basic business practices such as finance, human resource management and marketing.
Another real danger is that small business owners work very hard in business, trying to encourage more sales, handle negotiations with suppliers, make a moon payroll and try to get great customers to pay on time that they don’t capture the main problems in their business before they become Threats to the survival of their business.
The recent newspaper report shows that around 4,000 businesses went bankrupt in 2013. The cause of this business failure was not reported but did not take rocket scientists to look for ordinary fatal errors: poor business decisions, running out of cash, the market has dried up or Even an employee when employees who have embezzled the company.
Here are 10 practical survival tips for small business owners:
1. Stay in your “Circle of Competence”: Investor Warren Buffett avoids making investments outside the “Circle of Competence”. Starting something new, exploring to new markets requires competencies that may not be owned by small business owners. Stick to hold on to the knit in bad times.
2. Stay focused on cash flow: When cash dries, the game ends. In difficult economic time, it is important to monitor cash flows more often, if not every day. Prepare a simple system and watch your cash like eagle. Large customers want to take forever to pay and suppliers want their money now. This makes it important to manage cash carefully.
3. Don’t sign Sureties: When cash runs out, temptation is to go to the bank to increase your overflow. Don’t sign his suret that for small loans requires confiscation of all your business and personal assets. Enough word.
4. Temptation: Acting ethically at all times: Even what might be harmless will be a big problem if it involves and business practices that are unethical. Make sure you have a clear red line where you won’t cross. In this economy with people who are desperate, unethical, small businesses that are executatives are increasing. Detect them early and avoid it by all means. Some do not pay their taxes, it operates illegally and does not comply with health regulations and must be closed by relevant authorities.
5. Take the time to do your business: Working in your business gives you a little time to do your business. Take time every week to review where your business is running and how you can improve your operations and improve your market.
6. Insurance cover: Having insurance cover for fires, theft, and personal obligations: It seems there is no point in but how many small business owners have adequate insurance? Don’t lap because of this.
7. Business advice: the biggest risk that often faced business is poor business advice. Airlines and utilities are almost bankrupt because of poor business decisions and must be redeemed. Check business advice and rely on your own common sense and understand.
8. Avoid dangerous numbers 1: There is a danger in having one large customer or one major supplier. Check your business for this kind of risk and make a backup plan.
9. Still notice the behavior of unusual employees: One of your employees can handle too many important tasks, employees can take stock without you realizing and financial or bookkeeping employees can be involved in invoice fraud. Be careful with suspicious behavior.
10. Be Save: Maintain Costs Down and Avoid Purchasing Unnecessary New Assets. Set the target percentage of your small cost reduction and paste it.
10 Tips for the Survival of this small business is only a few that must be saved by small business owners