When you first started your small business, you probably did so with an endgame in mind. You might have dreamed of being your own boss, answering phone calls on the beach or at a golf course, while your dream team caters to a booming client base. Unfortunately, building a successful business doesn’t start and end with a dream. There are hurdles to jump and plans to make, and once you get busy, you may find that being a business owner isn’t at all like how you pictured it - and it doesn’t help that there are a lot of myths floating around about being an entrepreneur.
You may think that the key to running any successful business isto break new ground and be the first company to a market. More often than not, however, this isn’t the case. There’s a lot of time and tweaking that goes into developing a new product, and even more time spent in developing a respective market. Instead of racking your brain for innovative new ideas, focus on building upon one that already exists. It doesn’t have to be new, it just has to be improved.
In the beginning, this will feel like anything but a myth. Sure,as you’re getting your business up-and-running, you’ll be working long hours more often than not. As you become a little more established, however, you’ll build a solid team of professionals that can handle all of the day-to-day operations. Hiring trustworthy staff and delegating tasks will be a game-changer once your business is booming. Like anyone else, you’ll burn out quickly if you don’t take some time off every now and then.
Obviously, your business will tank if no one buys your product, but revenue alone won’t keep you afloat.The real key is to A) have a steady cash flow, and B) know how to manage it. Your sales may be solid, but managing your cash flow accounts for the money flowing out of your business as well as into it. Your business’s cash flow also considers investments, financing, and any other sources of money. There’s an endless amount of money to be made - what matters is how you manage it.
Anything can be a tax write-off
Your business vision probably doesn’t include being audited. It’s a pretty common misconception that you can count any little expense as a tax write-off, but that’s an easy way to get yourself into trouble. Would that expense be made if you weren’t in business? If no, then you can chalk it up as a personal expense and move on. Sales management softwares, business phone bills, and travel expenses are just a few examples of valid tax deductions.
Look, your product is probably so good that it should be able to sell itself. Unfortunately, that’s not how a business works. You might be an expert in your field and your product might be the best in the market, but someone, somewhere, has to do some selling. What’s the point if no one knows it exists? Investing in marketing and distribution is imperative when it comes to making sales and ensuring success.
The real take-away here? When you’re building a small business,do a lot of research, and try not to rely solely on your own understanding. The road to success is riddled with speed bumps, and it will humble you from time to time - but it will, eventually, lead to success. If you’re prepared for anything and willing to adapt, your journey will be much easier!