business owner in his cafe

5 Things Every New Small Business Owner Must Know Right from the Start

Based on statistics, only half of small businesses go past their first year and around 80 percent of these make it to the tenth year. These businesses that end up successful did a few things right from the day they started operating and that is making the right basic decisions.

Here are those decisions. Ignore them at your own risk.

Your location matters

Where your business is located largely dictates its success. Your business must be closer to where your customers are because no one will travel for miles just to get a service that they might as well still get just around the block. The location must be easily accessible and, as much as possible, have parking space for your customers.

For instance, if you own a food franchise opportunity or planning to have one, then you need to be around a commercial area where there are lots of businesses or foot traffic that need your services. Your customers should be able to quickly come to you when they need you.

Have a business plan down on paper

Most business owners have a very well outlined business plan, but only in their minds. It is just not enough to have it in the mind, you need to have it written down and properly filed. This is your business treasure, your go-to consultant when you are not certain of the next move. So, treat it as such. It is most important especially if you co-own the business or have other key decision makers in your business.

Keep your employees close

Do not be the know-it-all kind of boss, you can never know it all anyway. This is the reason why you employ professional people to do stuff for you. Be approachable and let your employees know that they can always come to you with opinions, suggestions or ideas to grow the business. The trick to this is that it makes your employees feel like they “own” the business and so, they become more responsible and mindful of their decisions and actions.

Start your taxation as early as possible

man settling tax

This is one area most small business owners ignore. Your business might be small today and you may not really have the finances to channel to taxation, but as your business grows, you must give the government its due taxes. Otherwise, they will come knocking on your door and you will not like it one bit. So, start filling NOW.

Start keeping records from day one

Why is bookkeeping important? It shows you the actual state of your business. It tells you when you need to pull up your socks and prepares you mentally for worse times ahead. And the list is endless. Point is, keep records of all outputs and inputs in your business no matter how negligible they may seem. It is the only way you can tell whether your efforts are paying off or not.

Most businesses fail because key decisions were not made right from the start. Things like bookkeeping, taxation and having a business plan down on paper are things that must start right from the onset and not when the business is dwindling and so you are acting on desperation. Reversing the situation is ten times harder and that is why most business owners throw in the towel at that point.