How to Run a Profitable Small Business – By Ismael Ndung’u
Every entrepreneur will tell you they hate making loses. Nobody starts a business to make losses, but to post profits. There are so many secrets of making profit that most business persons are not armed with. Such secrets are possessed by entrepreneurs who have made it in life.
Making profits means traveling a journey towards wealth and financial freedom, which is why you should follow the following rules:
1. Don’t mix friendship with business
In order to make profit, the owner of a small business should separate friendship from business; this is the only way you can ensure that your business survives.
Remember some friends are not happy that you are running the business; some of them may be on a mission to finish you so that you can fall to their standard.
Your mind should always focus on business… even if it means losing a friend so as to make profits.
2. Be consistent
In business, being predictable is what your customer expects from you. If you are running a restaurant ensure that the food you provide today is the same food you provide tomorrow and in future. You are allowed to add stock but don’t make a mistake of not preparing a meal that was available yesterday unless no one is ordering it.
Always ensure that opening and closing hours of your business is known to customers regardless of circumstances. If you fail to open today, your customer will move to the next shop and if they find the product is the same as yours then you are likely to lose him or her.
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3. Hire the right staff
Having the right staff is the key ingredient of a profitable small business. Your staff will either chase away customers or build an empire for you.
Whenever you are seeking staff, conduct the exercise professionally; biased recruitment informed by bribery, nepotism and tribalism will be a disaster for the business.
It has been proved that most small businesses are killed by relatives and people you think they can help you. It’s good to hire someone you are not related because if you do this, you will have all the courage to question him on issues related to the business than a friend or relative.
Employees know if they mess up your business, they will face the full force of law and no one will interfere, but in most cases if your relatives messes, the larger family may interfere thus affecting your business.
4. Motivate your employees
This is where most business owners go wrong and it has led to the collapse of many small businesses.
Once you start treating all employees as thieves, you give them little time to rest, you don’t motivate them with awards, leave, end year party then know that they will gang against you and kill your business.
Employees can be dangerous and the earlier you realize that they are important the better, otherwise you will regret!
Invest in your employees, give them good salaries and make them feel part of the company, that’s the only way you can see results.
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5. Monitor every coin that comes from the business
Business is all about profits. In order to make a profit you must monitor every shilling that goes out of the business.
Every day ensure that stock count is done then ensure that your employees explain each and every detail of the transactions. You may not be physically there but you can have efficient systems to monitor the business.
6. Don’t focus on competitors, focus on the product
Every business has competitors and if you want to beat the competitors don’t concentrate on what they are doing but concentrate on the quality of the products and services you are offering.
If you focus more on competitors you will lose direction and mess up your business.
7. Employ strategy
Strategy is important aspect of running a successful business. Without a well thought out customer focused strategy, you will not beat competitors.
8. Sell unique products
Being unique means standing out. It might take time to break even but once you have entered the market and people have tested your product, you will make it
9.Know the taste of your customers
Business is all about what customers want. Once you have identified the taste of customers, your business will boom.
10. Maintain a robust accounting system
Every small business needs a reliable and robust accounting system. Accurate and timely accounting records can give your company a significant advantage. Furthermore, access to your financial data could allow you to monitor your expenses, track your sales, and identify growth opportunities.