Navigating the Mountains: Dealing With the Practical Aspects of Running a Business All by Yourself
Starting a business is like traversing a set of mountains. Every time you encounter one obstacle, there tends to be another few exercises beyond, and therefore learning to navigate these mountains is ultimately a lifelong practice, but there are a number of things that a lot of people get wrong when they start out in the world of business. This is particularly true for those who are running a business by themselves.
People who are in charge of a small group of people and have to do a lot to keep their company afloat can feel like spinning a bunch of different plates when they don't actually know the art of plate spinning; you are, ultimately, muddling through. This is why we need to have a number of skills to ensure that those foundational components don't throw you off course on a Friday afternoon when you are ready to pack up for the weekend. This is where understanding the more practical aspects can make a huge impact. Here's the most important practical aspects to consider:
Proper Record Keeping
This is one of the major issues we can all fall down on. Keeping good records is good practice, and if you've been running a business for a while and you don't have a good system in place, particularly when it comes to contracts, important documents, and business transactions, including paying your employees, you need to learn how best to stay organized.
When it comes to things like calculations, a lot of people really struggle because they're not mathematically minded, but you don't need to have a doctorate in quantum physics to ensure people are paid properly and your finances are in check.
This payroll chart guide is one way to ensure that you are able to calculate everything effectively. You can, of course, consult with professionals or automate a number of these practices, but if you are someone who struggles with getting people paid on time, this can bite you in the proverbial further down the line because you're not doing what you can to give your employees faith in your abilities. This is why proper record-keeping is very much the equivalent of excellent business hygiene.
Proper Financial Management
This follows on from excellent record keeping, but if you recognize where your business is falling flat, particularly in terms of the incomings and outgoings, you are going to see far more clearly what requires more focus.
In terms of financial management, there is the almighty concept of cash flow, and ensuring you set aside money is an absolute must. The problem is that small businesses really don't look at how they can save for the future because they have very little profit margins to play with. You need to look at three key factors:
Taxes.
Emergencies.
Future Investments.
When you track these three and you set aside money for them, however little money you actually have, you're going to create a far clearer financial picture but, more importantly, maintain it. Your profit margin may be thinner than paper, but this is why it's not just about monitoring your cash flow but also about recognizing how much your services are truly worth.
So many of us make the mistake of drastically underpricing what we offer in the hope that more people will come to us. However, looking at it from the other point of view, where you price everything a little bit higher so you can cover your profit margins, means you will focus on quality rather than quantity. If we spend proper time valuing our services and develop a pricing strategy that covers our costs while providing a sustainable profit margin, we will be in a far better position.
Time Management and Productivity
We spend a lot of time focusing on perfection when, actually, practicality, not perfection, is pivotal. We're all human, and therefore we make mistakes, but the big issue that so many businesses operate with is that they don't show a safety net, and that perfection is the norm, with no room for error. What happens if you set this precedent? Burnout will occur, and this means people will fly the coop as soon as they find something that looks even remotely better, but you're also doing yourself a disservice if you are running a business in a haphazard manner, which is why time management and productivity are two sides to such a critical coin.
Prioritization is one of those things that will help you to see the wood for the trees, and when you focus on tasks that directly contribute to not just your revenue but your mission, those energies can be far better deployed. In business, a lot is said of the Pareto Principle, also known as the 80/20 rule, and when we begin to see that 80% of the results come from 20% of the effort, we can focus our efforts on those things and prosper.
Additionally, when you understand what is important and urgent, the Eisenhower decision matrix is another useful tool. The Eisenhower decision matrix focuses on four quadrants, which relate to tasks being:
Urgent and important.
Urgent but not important.
Not important but urgent.
Not important and not urgent.
When you prioritize your work based on these four areas, you can begin to see where you could outsource, delegate, or actually make things far easier for yourself. Another great tool is the Pomodoro technique, which is fantastic for those entrepreneurs who may have issues with concentration or fall into a neurodiverse category. The Pomodoro technique is about doing deep focus work for 25 minutes and then taking a five-minute break. Once you've done this four times, you can take a 30-minute break. The great reason this is so effective is because it gets you started, particularly when you don't have the motivation, and it also provides an end. There's always a finish line that you can see, and this can certainly help with those incredibly boring tasks.
It's also worth pointing out that if you have boring tasks, can you automate them, or can you use AI? For those people who are running businesses by themselves and having to juggle so many things, we can't underestimate just how fantastic AI actually can be, just to give you a far better dose of clarity.
Client Management
Managing clients is another quality versus quantity debate. As your business grows, you should remember to be more selective about the clients you take on. There can be that need to take on as many as possible so you are always busy, but over time this becomes unsustainable. Look for clients who align with your business goals and values, and when you start to become more picky about the right people, it gives you a far better understanding of what your business needs to thrive. You slowly start to recognize who the most important people are in your business, and this goes back to that 80/20 rule where if you find 20% of the right clients, this will account for 80% of the benefits.
Likewise, to ensure smooth operations, you've got to think about your communication, not just in terms of how you engage but also your communication channels while also setting expectations with clients, as this can avoid misunderstandings and ensure that your business is progressing in the right way.
There's, of course, plenty of other major foundations, such as your personal well-being and your growth and development, but when you address the practical aspects, you can most definitely create a solid foundation for your business.
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