As a business owner, there is always something to do, however, many business owners often spend more time working in the business than they do ON the business. Here are 10 simple management tips to help you maintain a successful business in the good (and not so good) times.
1. Industry Trends
Watch trends in your industry. Compare your business performance with your competitors and to your performance in previous years.
2. Review Plans
Review your market and your sales/marketing plans at least every three months.
3. Check Finances
Review your financial management. Timely and accurate reporting is vital to the success of any business.
4. Secure Budget
Ensure your budgets are current and regularly reviewed. If profit falls below what you had budgeted, prompt action is essential to reduce costs or boost sales.
5. Align Plans with Budget
Align your business development plans with your budget. Ensure they are practical and won’t put any undue pressure on your profit margin. If you can’t afford to do or buy something now, postpone it to when you know your business will be in a better financial position.
6. Tighten Credit Control
Ensure credit control is tight with prompt follow-up of overdue accounts. Make sure that your clients are aware of your trading terms upfront and if you have any concerns, discuss them first or refer them elsewhere. No clients are better than clients who can’t pay.
7. Assess Payments Policy
Review your payments policy. Are you taking maximum advantage of prompt payment discounts? Or if you are unable to pay an account in full by the due date, talk to the supplier and make arrangements to pay it off. Keep the communication open and honest and fulfill your promises.
8. Bank Credit
Review credit facilities with your bank. Are there better options available that could save money?
9. Inventory Turnover
Check inventories and ensure your stock turnover is at least equal to industry standards.
10. Do it Now!
Above all, DO IT NOW! If things look bad, take action to correct the situation. Look for positive approaches to solving any problems and for new opportunities to build your business.