How to manage a small business

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If you do not know how to manage a small business you will not be able to manage a big business. A bad administrator sooner or later leads your company to bankruptcy. So let’s learn how to run a small business!

Many people achieve a business idea. But in their eagerness to become entrepreneurs or owners, they do not know how to run a small business.  What guidelines to take ?, or What will be your direction from now on ?. And in my opinion, I believe that here lies the true secret of success, of all these small ideas of entrepreneurship, which have managed to materialize and maintain themselves over time.

If you analyze businesses near your locality, you will be able to realize that many of them are working. But others lasted for perhaps a few months, or a good season. And, in the blink of an eye, they went bankrupt, without even noticing it and this is because these people never knew how to run a small business  . Their small business!

How to manage a small business

There are some recommendations, which are very important, when managing a small business. That is why I suggest you take note, of what I present below:

 Organize a sales control

The important thing is this point, is that you keep a daily control of what you sell. For this I recommend that this information, you manage using the Microsoft Excel computer program, which is within Microsoft Office; these programs are already incorporated, in any personal computer, so the important thing of this spreadsheet, is that you can create a good data table, and even add some mathematical operations, which will allow you to post totals and subtotals, depending on the information what do you need?

Keep the inventory updated

To get to this update, the first thing you have to do is create an initial inventory. For this I recommend you, just like the previous point, lean on the Excel spreadsheet, where you will organize the inventory by product. It is recommended that for each product or service that your company offers, you have an individual control, in which you will update the entrances and the exits of the same. This is so that your information is kept under control and supervision, at the time of needing information, of the status of your inventory.

Control costs

At this point, it is important to define what are the fixed costs, variable costs and indirect costs. Since it will depend on this, the final cost of the product, which you are offering to the end user. You must register all the fixed costs, referring to the production of the product. That is to say, the raw material with which it will be elaborated, in case it is manufactured by another company, the cost of it and the labor or salary of the employees.

Within the variable cost, you must take into account the machinery and technology that you will use, in the elaboration of the product. You must take into account the maintenance costs of said machinery, so that its operational and useful life is as optimal as possible. In reference to the indirect costs, I can tell you, they are all those, that allow to establish or have an accurate calculation. For example: electric power, distribution transport, advertising expenses, among others.

Remember that in this learning process, how to manage a small company , your calculation processor sheet, will represent that virtual assistant you need so much.

Eliminate intermediaries

It is important that you locate, as far as possible, the direct suppliers of the raw materials. This will reduce production costs. And it will bring more profit margin. It will also allow you, a better control of the distribution chain, since the closer you are to the final consumer, it will allow you to maintain, a direct contact with the client. This will provide greater knowledge of the needs of these and greater loyalty of them.

Generate brand image

Using social networks, is an excellent way to be closer to customers. Nowadays, direct contact with people allows them to become multipliers in your business networks. A satisfied consumer is the best marketing tool that a company can have as an ally, and the corporate image of the company will be much more visible.

After sales service

Create a customer database. Use social networks for this. Generate advertising ideas, promotions, encourage them to follow you through: Facebook, Twitter, Instagram, etc. Remind them of their birthday dates, especially with those customers that you consider recurring in your business.

 Find new ways to increase your sales

An easy way to increase your sales, is to offer discount or promotion, for wholesale sales. If your product is inexpensive and easy to distribute, it offers delivery service. It is an excellent and very attractive option, to have a home delivery service, people are easily attracted by this type of service.

It is recommended that you stay updated and documented in areas such as market research. Examine trends in other countries, evaluate experiences of other people, who are innovating in your business area, will allow you to stay open, to explore new markets and improve your product more and more. The quality must be the presentation card of your brand image.

 Manage your time well

The good management of your business depends on the ability you have to lead and direct. For this part of your functions, is to delegate operational tasks. You can not be in everything, or deal with all the processes at once, especially if you have hired personnel. Teach them, train them. This will allow establishing a relationship of trust and fidelity. Remember that the automation of processes is very important and finally get used to carrying out a daily agenda of tasks. This will allow you to better organize your time.

There are 8 points that you should not ignore …

for no reason. Remember that if you are a good administrator, you will reach your goals in the best way possible. That is, you can achieve the success you are looking for as an entrepreneur. Without more to add I have no choice but to say goodbye. A hug and see you soon.

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