Managing a small business anywhere in the world requires some tough skills. If you are in Nigeria, it is even more tricky. You have to deal with rising costs of production, the sometimes unpredictable policy climate, juggling several balls and basically trying to scale past each day. You will need to have more than a business idea and capital to stay afloat and thrive.
For the most part, you will find that your business gets heavily impacted by the same things big businesses do and get away with. By virtue of your size, you should generally be working by different set of principles altogether. Here are some tips that will help reduce the number of bad days for you and generally improve your journey.
Identify time-wasting activities and let them go
As a small business owner, you should know that time is your greatest asset. Time is irredeemable and if you keep spending all your time on time-wasting activities, it will clamp down on your growth. Every day, you need to identify all what you are doing, and how they may or may not contribute to your business. Many people tend to spend 80% of their time on activities that contribute 20% to their revenue and overall business growth. Make sure you are devoting more time to the things that count.
Write a to-do-list in order of priority
It is not a childish thing to work with to-do-lists. In fact, this should be one of the surest ways to ensure that you do not spend your entire day on activities you never planned for in the first place. Write this list with three things in mind; one for items you have to get to that day (must-do), and a second for things that need your attention but can wait (will do). Make the last category for minor tasks and responsibilities that you can do if you have spare time (might do).
Delegate when necessary
It is possible that you are running your small business alone, but be on the lookout for tasks that you can assign to others (outsourcing for instance). It is an easy way to clear your desk, by letting others handle the things you don’t have to do yourself. If you spend time doing the things you can delegate, you will hardly have the time to do the things that matter. It may not be easy for you to switch to this after doing things alone for a long time, but it is a phase you should get to.
Set realistic goals and targets
Life will be a lot tougher for you if you do not learn to set realistic goals of where you want the business to be after a period of time. Don’t feel an excessive nudge to be ambitious and end up setting goals you clearly know you cannot hit. Be transparent, and set quantifiable goals that align with the direction you have chosen for your business. The fact that your competitor hit $1 million in sales within 12 months, does not mean you will achieve the same in that period.
Your goals may be a certain number of customers attained, a certain number of products sold, or some other measure of success.
Invest in marketing
This does not refer to just financial resources. As a small business, you should be ready to invest time and other resources into getting the word out. If your business is unknown, you will not get the sales you seek. Find out marketing tactics that do not go beyond your budget and apply them. Do a lot of Social Media Marketing, Content Writing, Search Engine Marketing and everything you need to take the word out about your product. There is also word of mouth, another very powerful marketing tool.
Don’t joke with hiring
A common experience among small business is that sales do not increase when they bring in more hands, and it is not the best of experiences. Be careful with your hiring, and ensure that you are bringing in individuals with the right attitude, skills and culture fit. In fact, skills and experience is only half of what you need. You need to hire people who can contribute to the bottomline without disrupting your culture or business.
Separate business & personal finances
This is the holy grail of business finances. Mixing business money with your personal finances is a recipe for unexplained losses and unnecessary tax-headaches. Keep your personal and business finances apart. Have an account dedicated to your business and use it for all business-related transactions. Keep proper records. File your accounts and pay your taxes when due. Invest in an accounting app or solution that can make your life easier.
Build solid business relationships and networks
Business leaders in every industry understand that your network is a critical determinant to your success. You need to build relationships with a wide range of people, including investors, peers, employees, and of course customers. Unfortunately, some people who are great at inventing things, and have high creativity, often don’t have strong interpersonal skills or interests. Learn to spend time with your most important customers, your most productive employees, and leaders who can make the most difference to your organization. These relationships will pay off in the short and long-term.
Bottomline
There’s nothing more annoying than a business owner or manager who doesn’t know how to manage. Small business management involves wearing many hats and keeping your focus on many different tasks. These tips can help you stay focused on the most important aspects of your business and keep you on the road to success.
