Success in business can be attributed to a lot of things. Of the many, one identifiable key that leads to business success is the application of sound business practices.
If you are someone who’s been thinking of starting a new business, or if you already have your own business and you want to level up, reading on and learning from what is written here will surely help you begin your journey towards the challenging yet rewarding world of business.
The more apt question to ask at this point is this: are you ready?
There are many business practices that when strictly implemented, will increase the likelihood of business success. Below are three (3) of the most crucial business practices that are said to make certain business success.
Always Keep Good Records
This is predominantly crucial in the area of finance.
All businesses must have their financial books. Financial books keep records of income and expenditures. Every expense must be noted down; every income recorded. The financial records will help the business owner evaluate or assess the financial condition of the business at a particular time; whether it is making money (profit) or not; and if it is, by how much, or if it is operating at a loss, also by how much.
The financial records will also tell the business owner how long he will be able to regain his investments.
Properly kept records will also tell the business owner where he is losing money in the operations. Data showing the inflow and outflow of cash will tell the business owner if the business is running efficiently or not.
So what records should be kept? A record of all cash inflow and outflow. In a nutshell, everything! Do the record keeping on a daily basis. Then, reconcile all records at the end of the day. Keep receipts of all disbursements or expenses.
When It Comes to Personnel, Hire Slow But Fire Fast!
People involved in the business help make the business succeed; or they may also contribute greatly to its failure.
This is a fact that is as old as time. Human resource will always be the most important resource of all. This is the reason why all efforts must be given to ensure that the business will hire the best people available.
To ensure that only the best applicants are accepted, screening procedures should be strictly implemented during the hiring process. To hire slow means to put forth enough effort to properly screen applicants; and to hire only the best.
What’s with the “Fire Fast” practice? If the business has done all it can to screen the best applicants, and in the course of his employment management has exhausted all means to train him and equip him for his job, yet the employee (s) still manages to cause trouble in the workplace, it will be very wise to let go of the problem-causing employee(s) as quickly as possible. This will also send a message to the other employees that you really mean business.
Just be sure that when firing workers or employees, no labor laws are violated.
Think Big, Start Small
It is but natural for people to get intimidated when they look at the big picture – the things that need to be done. Wise and smart entrepreneurs, however, look at things in a much clearer perspective. There’s an adage that says “survey large fields, cultivate small ones”.
How do smart people view the ‘big picture’?
Accordingly, the best thing to do when faced with great tasks is to break them down into smaller, more manageable sections. This means seeing the “big picture” and then knowing and recognizing what needs to be done in order of priorities; plotting out the strategies; and then starting small, consistently, towards accomplishing the greater whole.
It’s more like mowing your lawn. Looking at a very wide space with all the work that needs to be done can be very overwhelming. But it’s not really that bad as long as you start sectioning the area and working on one section at a time. Without really thinking much about it, time will come you will be able to finish the whole lawn.
The same is true with business. Begin by having a clear vision of what you want to accomplish; then set your goals – both long term and short-term.
Then, be sure that you include your team in planning your strategies.
Be sure you have a clear long term goal; then make your short-term goals. Remember, your short-term goals must directly contribute to the attainment or accomplishment of your long term goal.
If you follow all these three (3) practices, there’s no reason you will fail in your business.