8 Considerations to Follow When You Are Your Own Boss
The idea of becoming your own boss is what drives so many people to take the plunge into self-employment. Approximately 16 million Americans already identify as self-employed, with this number expected to grow in the years to come.
As your own boss, there are so many considerations you need to account for to ensure your business runs smoothly. In this guide, you will learn more about the most important aspects of running your own business.
1. Cash Flow Considerations
Did you know that just 25% of small businesses reach their 15th birthday?
Perhaps the biggest reason is poor cash flow. Capital is the lifeblood that enables your organization to continue to operate. Without cash available, you will find yourself unable to meet your expenses.
Your number one consideration as a business owner is keeping a handle on the amount of liquidity available at any one time. Regular analysis of your books and what you can expect to come in from clients will allow you to strategize intelligently.
It’s simply a matter of ensuring that you’re saving enough of your liquidity rather than immediately reinvesting it into the business. You must balance the need to achieve rapid growth with preserving what you already have. Strike the right balance and avoid relying on outside financing too much.
2. Protecting Your Future with Insurance
It may be a dull subject, but there’s nothing more important than insurance for your business. Holding a valid insurance policy allows you to meet your legal obligations and defend your business if an accident occurs.
A member of the public falling in your shop, an employee hurting themselves while on the job, or a simple malfunctioning piece of equipment could cost you your business. Business liability policies are essential for defending your future.
Moreover, you may also want to consider self-employed insurance. If you’re unable to do your job, how will you proceed? Self-employed insurance will keep you covered.
3. Changing Markets
Another of the big reasons why small businesses fail after experiencing initial success is failing to account for the changing needs of their target markets.
The conventional advice is that you need to conduct a complete market analysis before following that up with a competitor analysis. These actions are an essential part of your business plan, but are you performing these analyses again?
Most entrepreneurs fail to do so. When their customers move on and their competitors’ pivot, they’re unable to keep up. You should be examining your target demographics and keeping an eye on your competitors at least once per year.
4. Your Company Culture
Even if you only have a couple of employees, company culture matters. Culture is not exclusively an issue for major corporations.
Culture pertains to the overall feel of a business environment. In other words, what is it like to work there?
Employees largely prioritize company culture when working for anybody. The trend has only grown since COVID-19. Satisfying your workers can increase productivity, with satisfied workers being 10% more productive, according to a recent study.
If you’re serious about company culture, you need to speak to your employees and listen and act on what they say.
5. Delegate Appropriately
Entrepreneurs often find it difficult to entrust aspects of their business to others. Trying to take on too much at once can quickly lead to stress and burnout. It also demonstrates a lack of trust in your team.
The art of delegation is crucial to the success of any organization. Focusing on the things you’re good at while letting those more talented manage other tasks will ultimately streamline your company.
6. Embrace the Power of Technology
Technology is a broad topic to tackle as a small business owner. In the past, conversations regarding technology focused on bringing in new innovations to produce better quality products and services. That principle continues to apply today.
However, incorporating technology into your business can also apply to downloading business apps to automate tedious administrative tasks. It includes adopting cloud computing solutions to make your business more mobile and its data more secure.
Be open to understanding the latest technological advancements to enable you to enhance the way you do business.
7. Consider the Importance of Data Security
Unfortunately, concerns over the security of sensitive consumer data have led to regulations coming into force worldwide. Policy frameworks like the GDPR and CCPA have meant that businesses have had to scramble to remain compliant.
The bad thing for the small business owner is that these regulations apply to you the same way as any multinational corporation. Your obligations remain the same, and enforcement has grown over the years.
The good news is that these are the actions you would want to take anywhere to preserve your reputation and instill confidence in your customers.
Think about how you’re protecting your business from data breaches.
8. Building Your Brand Story
Your brand has a story. It’s the story that people like to buy into. No matter which industry you happen to operate in, building your brand’s story is essential to how you market your business.
It must embrace your core values and the journey you’ve taken from one point to another. Your evolving story separates your brand from a competitor selling the exact same product.
Focus on the perception of your brand and how you will shape that perception in the eyes of your customers.
Remember, it must remain consistent across your entire brand, including on your website, in your email communications, and across your social media channels.
There’s so much that a business owner has to consider at every stage of the entrepreneurial journey. Building your organization begins with surrounding yourself with the brightest and the best. Avoid falling into the trap of attempting to manage too much by yourself.
Make sure you have the ideas and the talent around you to provide support and ideas as you continue to grow.
What’s your biggest consideration as an entrepreneur?