Starting a Microbusiness? Use These Tips to Plan For Success4878056
Aus Salespoint
Entrepreneurship is not just about building a huge corporation based on an amazing new innovation. Successful businesses are started every day based on basic needs, and small companies can be profitable for years with just a few (or no) employees. Wanting to work for yourself does not require that you manage dozens of employees or grow into an international conglomerate. Still, owning a microbusiness does require that every aspect be run as any other business.
How Much Will You Grow?
Three-quarters of all startups are microbusinesses, whether solo enterprises or ventures that employ just a few employees. Some of these ventures are launched with the intention to grow, while others do well by maintaining a consistent size through the life of the business. The difference depends on the entrepreneur -- just about any business idea can go either direction. It is important to decide before you launch how far you want your business to go. If you plan to grow and expand significantly, those goals must be incorporated into the planning and development from the start. If you want to stay small, there are certain factors that are affected that way as well.
Finding the Right Balance
The toughest thing about running a microbusiness is finding the right balance. Microbusiness entrepreneurs are still responsible for all the fundamental business and operational issues, but must also manage development to appropriately limit growth. Marketing is still at the heart of your business, but the efforts you pursue will be different than for rapid growth firms. You will need strong networking connections, as any overflow business will need to be directed to a competitor that you trust, whether through contracted service or referral. Your financial management skills will have to be sharp in order to maintain sufficient profitability.
Ongoing Planning is Key
Ongoing planning is also critical...whatever line of work you are in, the odds are that what you start out doing will be vastly different than what you will be doing in five years. Without good planning, many microbusiness owners find themselves struggling to make changes late in the process. The current recession is a good example. The small businesses that planned ahead and paid attention to the changes around them are still in business and making a living. Those who didn't folded under the gradual decrease in sales.
Maintain Legal Compliance
Microbusiness owners also need to be careful to maintain compliance with all legal responsibilities. While have just a few employees does exempt your business from a few federal and state regulations, you are still obligated to follow most employment laws. Don't assume that you are free from responsibility because you only have a few workers, and don't assume the government won't go after you for failing to comply. You are responsible, and your business will be treated the same, if not worse, than larger corporations if you don't fulfill those responsibilities. An employer is an employer, so be sure you know what you need to do and plan those tasks into your schedule.
Starting and running a Microbusiness can be an excellent option for new entrepreneurs. Whether you plan to grow the venture or not, be sure to treat your startup as you would any other business, and keep your focus on the planning, marketing and financial management that will keep you on track for success.
