Today, I wanted to start with a very long article, but I've decided to make it into two.
The first half, paragraphs one through five below, and six through ten will be in part two of this title.
Sorry, but I think the subject is just too important to condense.
One: Probably the biggest mistake a new person can do with his business, is try to do it all.
Won't happen my friend.
There just ain't enough of you to go around.
You'll have to get some help some time, and it better be sooner than later.
There are many reasons for this, but the number one reason is knowledge.
Do you know everything from sales to accounting? Manufacturing and shipping alone require a lot of skill to manage.
Just analyze what it is that you know, and adjust accordingly.
Two: Be sure you have the right category for your business outline.
You may have to incorporate, go with something called an LLC (Limited Liability Company) or something in between.
You probably won't have to decide before you open the doors, but rest assured - that decision will be facing you before you know it.
At least make the decision before you get to where you need it.
If you estimate wrong, you could be forced to pay taxes twice and be in legal jeopardy.
Three: Don't think you are wildly successful even before you open the doors.
Many times new owners will go into a dream cycle about the bucks coming in, but dreaming doesn't pay the bills.
You have to have very specific goals with a step by step solid business plan.
The public has been bombarded with advertising, and have developed the habit of turning off any advertisement.
A commercial on television is mostly just a signal for a bathroom break.
Know exactly how you can crack the advertising ceiling to get yourself to the public.
Think outside of the box.
Guess work ain't gonna cut it.
Without advertising, you are closed.
Four: 1.
Be very careful who you trust.
Of course, you will be eventually be hiring someone to do a specific task, but get references (no, not your neighbor) that you can trust.
See it in writing, word of mouth won't do it.
Hold your employee structure to an absolute minimum.
Always work against the feeling that "If you only had more people".
Start small and let it grow.
If you start big, expect it to collapse.
2.
Carefully study the expenses of even one employee on the payroll.
Their space, tools, space to work, insurance and training.
Once you have a well thought out expense plan, add half again, just for emergencies.
Murphy's laws are always prevalent - if it can go wrong, it will.
3.
Be very careful about where the employee is housed.
The big trend in today's market is home based employees.
OK, but how do you measure their output vs.
cost.
Are they giving you and honest day's labor for an honest day's pay? You better have a good way to track results.
Off-site employees have destroyed more than one business.
4.
Consider the possibility of "temp" help, or maybe contract.
Don't carry a burden you don't have to.
You can (almost) always hire that temp if things work out.
There's no short cut, but you can cut your losses, at least on the surface.
Five: If its money, get it in writing (and business is ALWAYS money): Trusting someone is very dangerous, especially a closer relative or long-time friend.
Remember that this individual is out for the money and the business.
It often works out that he is after your money and your business.
Handshakes are a warm old custom, but that's what they are - an old custom.
Get anything you agree to in writing, and with non-interest witnesses.
Just one stupid mistake can cost you literally thousands of dollars.
In the following article, I will try to cover more in depth working on cash, tips on hiring new employees, making the employee accountable, don't believe everything you hear, outside advice, and fear of the unknown.
Remember, these are my ideas and opinions.
Be sure and get other views and thoughts from other sources.
There are no two people or jobs exactly alike and management principles should never be exactly alike either.
Common sense is just wisdom with its sleeves rolled up.