The past year was not kind to many small business owners. If you survived, you undoubtedly feel fortunate. Now with the pandemic mostly in your rear mirror, you can take the lessons you learned to establish wealth in the years to come.
Rely on Expertise
Having people in careers that offer expertise, will benefit your small business and help you reach previously unachievable goals. Find a reputable accountant, attorney and tax advisor. That will allow you to bounce ideas for growth off each other with the knowledge of risk and gain.
Large corporations have a bigger budget. Unfortunately, many small business owners have very little money to waste. For this reason, they must spend money wisely. Outsourcing and software programs can perform services that you otherwise couldn’t afford. Without an accountant, bookkeeper and tech support, you will spend valuable time attending to all aspects of the business.
Having someone handle your taxes and payroll frees your hands to keep the focus on advertising. Companies that provide software for things like shipping packages, will allow for a monthly UPS audit behind the scenes.
Personal Is Separate
Too often small business owners combine their personal and business expenses together. That is a recipe for disaster. You must keep the two separate.
Have a checking account for your personal expenses and one for your business expenses. The money you make in the business needs to benefit the business, not become yours to spend recklessly.
Growth is sustainable through a diverse portfolio. Capital on hand isn’t creating profit. Instead, take your extra capital (beyond the money left to weather any storm) and invest it. That will help you personally establish wealth outside the business.
Many small businesses went under during the pandemic because they operated without practicing preparedness. Just like you have savings established in your personal budget, you need to have one for the business.
Having at least six months in reserves to cover your expenses is allowing you to remain afloat during difficult financial times.
Keep Your Name Good
Maintaining a good name as a small business owner is more difficult today. With nearly two-thirds of the population on the internet and social media platforms, one false move and your business gets a bad name.
Having a presence on social media could be critical to your success. So it’s in your best interest to stick to the narrative of your business and leave personal opinions out. It’s also beneficial to maintain a current status on these sites by responding to consumers promptly.
Customer Service Still Matters
Even though many aspects of business are constantly changing, one thing remains the same, the need for excellent customer service. Practicing good customer service doesn’t only keep your current customers happy, it increases your sales.
Customers can be fickle creatures. If they like a business they will refer it to everyone they know. That could bring an abundance of new business your way without the need for costly advertising. Repeat customers spend more and bring a following of additional revenue.
Explore New Ideas
There’s already a risk in owning a business, so why not try something new? You have ideas to expand the company, what’s the worst that can happen, it doesn’t work. However, you can also make more money.
Don’t Live Beyond Your Means
A common mistake to newer small business owners is wanting to reap the benefits instantly. They buy a larger home, new cars, boats and go on exotic vacations. While it’s good to dream big, take it in stride. Living within your means will allow you to achieve your dreams in time.
Small business owners represent two-thirds of active businesses today. You can create personal wealth with smart money management, keeping your personal life and business separate and living within your means.