Tips On Running A Successful Business

Successful BusinessWhat is the point of the business? What is the idea?

Make a business plan even if you don´t need funding, this will help to make a clear image of how the business will work and run and set you targets, ie. by year 1 we will be turning “200,000€” a year

What is the marketing plan? And which section of the population is this directed at?

It´s highly important to have a marketing plan as if people don´t know who you are or what you do then how will you sell anything?
Don´t underestimate the value of facebook and twitter pages, as well as google. The good thing about having a following is that you can update your clients as soon as you have a new product or a new offer to show them, cost free. Adverts in magazines or newspapers are also offer good marketing, but you need to find out who are the readers and what age range will they fall into (Are they your potential customer?)

How much should you spend on advertising?

You have to make assumptions, how many of those adverts you put out will come back to you. ie. how much do you spend to get a client and will that client be a one-off client or will they come back for more business.

What is the competition?

What are their strengths and flaws. Research 5 direct competitors and 5 indirect competitors and figure out what it is that you will offer that will be different. ie. they are a well known brand but the customer service is lacking.

Common Mistakes

Don´t give any freebies to friends, it won´t benefit the company and if it´s for free people won´t see any value in your product or service.

Family Help – On one hand you could have someone in your family or close circle of friends working for you on the cheap or for nothing, you completely trust them. However what happens when it goes wrong? If they can´t do the job correctly you look at the choice of losing a friend or losing your business…

Update or fail – For example if you have a computer from the 90´s that takes 20 minutes to load and the internet connection is terrible, it would take your employee 2 hours to do work that could be done in 20 minutes if they had the latest technology and if you have the latest equipment. So consider how much you would spend on a new computer to what you are having to pay in wages to that employee.

Don´t waste your time with extra long breaks, sorting out papers (be tidy and organised and you´ll be more efficient.)

Keep your costs down – don´t splash out on fancy offices and staff until you have enough cash flow to do so, work with the minimum and don´t hire people to do a job that you can do yourself.