How entrepreneurs can run a successful business

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Entrepreneurs stay in business thanks to an enduring optimism and a willingness to take risks. But what does it take to run a successful business?

If you’re scratching your head as to how you managed to become an entrepreneur and have a successful business, you’re not alone. Anyone can start a business but few can keep one afloat.

In many ways, it’s a learn-as-you-go process. You’ll probably never stop learning how to be a better businessperson.

To start, here are some essential things you need to know in order to stay in business.

Communicate well

As you start your company, delegate tasks to employees as quickly as possible. Those who try to do everything on their own become disorganised and miss growth opportunities.

To delegate, communicate your expectations clearly and promptly, whether verbally or in writing. It’s also wise to consolidate your communication channels as much as possible. This might mean handling all of your email addresses (personal, business, side business) under the same program, using a virtual fax app like eFax to quickly send documents to a recipient’s fax machine, or routing calls to your associate’s mobile phones with a service like Zintel.

Reinvest in your business

As profits come in, be prepared to reinvest them into your business. Try to put money into initiatives that your company is already working on. Bolstering your current efforts is often more helpful than trying to do something brand new.

Likewise, keep your business specialised. Don’t spread your money too thin. Reinvest in your business in a very focused manner. For example, an increased marketing budget can result in growing sales and profits, which keeps the cycle moving.

Value your employees

Good employees are important to any business. Motivated, empowered employees are vital to grow your company. Listen to your employees, pay them a respectful salary, give regular raises, adopt a supportive, success-oriented mindset within the company culture and give your employees the opportunity to make decisions on their own.

When something doesn’t go as planned or a mistake is made, look in the mirror before casting blame around the office. This leadership practice helps keep the team’s spirits up. It also means that you are more likely to pinpoint what can be done differently in the future, since most problems truly are down to management issues.

Get a handle on finance and cashflow

Cash might very well be flowing in but how much is pouring out? To run a successful business, there must always be money in the bank. You need to make enough money to pay employees, to reinvest in the growth of your business and to have a little left over for yourself.

First things first: separate your personal bank account from your business bank account. This simplifies your financial reports and taxes. And it’s just good business sense.

If finances tend to confuse you, hire an expert right away. Delegate financial evaluations to this person but stay involved. If there is a cashflow problem, you need to know right away. You also need to take action right away. Whether this means a lay off or budget cuts, it is better to do it sooner rather than later.

Stay positive

Ultimately, entrepreneurs stay in business thanks to an enduring optimism and a willingness to take risks.

Nothing in business happens as fast as we hope or expect. Set manageable goals and keep pushing forward. It takes time to build momentum. So be ready to give your venture a fair chance at success by setting a realistic timeline as well.

Cathy Habas, Contributing Writer, eFax