Business management is another important skill that you need when you have decided to work on your own business.
This part of business is one of the main reasons why some businesses fail within the first year of establishment.
According to research, about 85% of businesses fail in the first five years of operation while only 5% survive beyond 10years.
Not that all businesses have a bad ideas but majority of them lack good business management. Inability to manage the business is the reason for their failure.
This has become a well established fact with evidence around us even though we might not take cognizance of it.
Look critically at your line of business, how many big businesses do you know? If you count very well, they must not be up to five but if you consider the number of small and medium scale businesses in the same field or industry, you will see that there are countless numbers of growing businesses.
Steps to managing your business.
I am sure you will want to know more about business management and how to scale the first five years of operations if you are into business already.
If you are planning on establishing your own business, this should be a preventive measure for you.
The steps are stated below:
- Register your business
Many people make mistakes about registering their business at the initial stage and lose valuable information and opportunities.
Whatever your business might be, make sure you register your business name and get certified.
Build your brand as a certified business and that will give you an advantage over other business start ups that are not registered.
- Plough back profit
During the first five years of operation, if you are making any profit, 100% of your profit should be retained and used for growth and expansion.
Make your business stand firm before you take out of it. There will be more than enough to take out of the business if you give it time.
During the process get another income to pay off your personal bills and let the business pay its bills as well.
Example of other lucrative job that you can do to pay off your personal bill is becoming a kurepay agent. Click here to read more.
- Track your income and expenses
If these will require having a business account, go ahead and have it but make sure you treat your business as a separate entity.
Do not mix your personal money with your business income.
Know the exact amount you are making from the business and also track your expenses. You can achieve this without stress by using kurepay wallet for your transactions.
- Invest in other businesses
Do not make same mistakes like your predecessors in the business. Make sure you are investing outside your business.
Your investment can be in another business in your line of business and it can be in another line of business. Just make sure you are making investment in the name of the business.
Do not consider learning a new skill as an investment because as a start up, your business needs your time like a just wedded couple.
So it will be a great idea to invest in a business that requires nothing except your investment amount like the kurepay investment.
- Government policy
Never forget this last aspect when you are planning for your business.
You must be conversant with the government rules and regulations regarding your business.
Know about the rules that will make your business to thrive and work on it.
Do not overlook all the rules and regulations that can hinder the success of your business. Make sure you avoid such at minimal cost.
Choose whether you want to be successful or otherwise, be your own business manager.