11 answers
Audrey
Student
Pahrump, Nevada
1
Question
Updated
548 views
What are smart ways to run a business?
What are the most efficient ways to start and run a business? What are good ways to be financially stable and sustaining, while also saving and investing?
11 answers
Daniel Brennan
66
Answers
Updated
Daniel’s Answer
I think an interesting tip i've received which i believe to be very important for the business itself, but also personally is that you should never mix business and friends/family. Involving loved ones in a business can lead to permanently damaged relationships and also put undo harm on the business itself. I think its important to be careful of anything that involves loved ones and money.
deborah kania
Marketing
48
Answers
New Bern, North Carolina
Updated
deborah’s Answer
Hello Audrey! I appreciate how you asked this question.
After doing research that shows there is a target market customer base that is attracted to your solution (product/service), it helps to perform these business planning tasks:
- Start-up and first year operating costs
- Cashflow forecast
- Business plan write-up - how the business will operate, attract customers, and cover costs and generate profits, etc.
I advise making sure you know you have enough money saved , BEFORE opening the business, to pay yourself and sustain the first year of operations.
Also, experience and knowledge about the type of business/industry is important. For example, if you want to start a restaurant, I suggest you work in one - as host, service, kitchen staff - exposed to all parts of the the business. In addition to experience, you'll find out if you enjoy doing that particular business every day, week, month, year.
Business ownership is very rewarding, but also very hard work. Research and planning will reduce risk and increase likelihood of success. Also, enjoying crunching the numbers is essential to efficient operations.
I hope my answer is helpful to you.
After doing research that shows there is a target market customer base that is attracted to your solution (product/service), it helps to perform these business planning tasks:
- Start-up and first year operating costs
- Cashflow forecast
- Business plan write-up - how the business will operate, attract customers, and cover costs and generate profits, etc.
I advise making sure you know you have enough money saved , BEFORE opening the business, to pay yourself and sustain the first year of operations.
Also, experience and knowledge about the type of business/industry is important. For example, if you want to start a restaurant, I suggest you work in one - as host, service, kitchen staff - exposed to all parts of the the business. In addition to experience, you'll find out if you enjoy doing that particular business every day, week, month, year.
Business ownership is very rewarding, but also very hard work. Research and planning will reduce risk and increase likelihood of success. Also, enjoying crunching the numbers is essential to efficient operations.
I hope my answer is helpful to you.
Veselinka Georgievska
9
Answers
Bratislava, Slovakia
Updated
Veselinka’s Answer
Hi Audrey,
First you need a great idea, to be the first offering that product/service on the market (market can be defined differently, it can be the idea exists somewhere else but you want to apply it in your country first - that too can be successful)
I read the answers , all are relevant, but to me most effective tool to keep an eye on your business is to have a business case. You can find a lot of free templates online, try and search.
Business case should give you the full picture of your business - how do you plan to get the revenues (what are the drivers? how many products/services do you plan to sell and at what price? How do you come up with those assumptions? Are they realistic?)
You do the same with the planned costs related to the business - list EVERYTHING from renting a place, salaries, office materials, external services, electricity bill, do you need a loan etc)
Check if you need to buy some equipment (which is an investment - CAPEX) how long you will be using it, maintenance cost etc and replacement cycles...
Extrapolate it for the next 12 month and next 5 years - that will be the horizon and long term plan)
Then you need to calculate all the relevant KPIs: ROI, rate of return, NBV, and you will see what are the prospects of your idea initially, if the investments are returned in less than 5 years you have a chance to make it. Don't forget to regularly compare the actual results with the business case and have a solid understanding on the business drivers so you can take some actions to correct the direction or anticipate the risks.
Good luck,
Veselinka
First you need a great idea, to be the first offering that product/service on the market (market can be defined differently, it can be the idea exists somewhere else but you want to apply it in your country first - that too can be successful)
I read the answers , all are relevant, but to me most effective tool to keep an eye on your business is to have a business case. You can find a lot of free templates online, try and search.
Business case should give you the full picture of your business - how do you plan to get the revenues (what are the drivers? how many products/services do you plan to sell and at what price? How do you come up with those assumptions? Are they realistic?)
You do the same with the planned costs related to the business - list EVERYTHING from renting a place, salaries, office materials, external services, electricity bill, do you need a loan etc)
Check if you need to buy some equipment (which is an investment - CAPEX) how long you will be using it, maintenance cost etc and replacement cycles...
Extrapolate it for the next 12 month and next 5 years - that will be the horizon and long term plan)
Then you need to calculate all the relevant KPIs: ROI, rate of return, NBV, and you will see what are the prospects of your idea initially, if the investments are returned in less than 5 years you have a chance to make it. Don't forget to regularly compare the actual results with the business case and have a solid understanding on the business drivers so you can take some actions to correct the direction or anticipate the risks.
Good luck,
Veselinka
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity.
3824
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hi Audrey,
Unleashing the Secrets to Running a Successful Business and Securing Financial Stability
Embarking on the journey of establishing and managing a thriving business calls for meticulous planning, strategic choices, and a dedication to financial stability and longevity. Here are some clever tactics to help you reach these milestones:
Engage in Market Research: Before you set up your business, carry out comprehensive market research. This will help you understand your potential customers, their requirements, and your competitors. With this knowledge, you can design a product or service that caters to your target market's needs and distinguishes your business from others.
Craft a Business Plan: A well-structured business plan can guide you in defining your objectives, strategies, and financial forecasts. It should encompass a detailed overview of your offerings, your target market, your competitors, your marketing and sales tactics, and your financial predictions.
Assemble a Stellar Team: Recruit staff members who resonate with your vision and principles, and invest in their growth and development. Cultivate a welcoming and inclusive work environment that promotes teamwork, creativity, and innovation.
Handle Finances Wisely: Keep a close eye on your earnings and expenditures, and devise a budget that matches your financial objectives. Regularly check your cash flow and make necessary adjustments. You might want to consider hiring a financial advisor or accountant to guide you in making sound financial choices.
Embrace Technology: Invest in technology to make your operations smoother, boost efficiency, and elevate customer experiences. Think about using cloud-based software and tools for managing your finances, customer relations, and marketing initiatives.
Prioritize Customer Service: Deliver exceptional customer service by paying attention to your customers' needs, addressing their feedback, and providing top-notch products and services. This approach will help you cultivate a loyal customer base and stimulate positive word-of-mouth publicity.
Stay Informed about Industry Trends: Keep abreast of the latest industry trends, best practices, and regulatory modifications that could impact your business. Participate in industry events, peruse industry publications, and network with fellow business owners to stay ahead of the game.
Expand Your Revenue Streams: Diversify your revenue streams by introducing related products or services, or by venturing into new markets. This strategy will help you offset risks and guarantee long-term financial stability.
Plan for the Future: Allocate a portion of your profits for savings and investments. Think about opening a retirement account, investing in stocks or real estate, or initiating a side gig to earn extra income.
Remain Agile and Adaptable: Be ready to adjust to fluctuating market trends, customer tastes, and technological progress. Stay flexible, be receptive to fresh ideas, and be prepared to modify your business strategy if required.
In summary, steering a successful business necessitates careful planning, strategic decision-making, and a commitment to financial stability and longevity. By adopting these clever tactics, you can fulfill your financial objectives, build a robust team, and establish a successful and sustainable business.
Recommended Reading:
“The Lean Startup” by Eric Ries
“The 4-Hour Work Week” by Timothy Ferriss
“The E-Myth Revisited” by Michael E. Gerber
Take care and God bless,
James.
Unleashing the Secrets to Running a Successful Business and Securing Financial Stability
Embarking on the journey of establishing and managing a thriving business calls for meticulous planning, strategic choices, and a dedication to financial stability and longevity. Here are some clever tactics to help you reach these milestones:
Engage in Market Research: Before you set up your business, carry out comprehensive market research. This will help you understand your potential customers, their requirements, and your competitors. With this knowledge, you can design a product or service that caters to your target market's needs and distinguishes your business from others.
Craft a Business Plan: A well-structured business plan can guide you in defining your objectives, strategies, and financial forecasts. It should encompass a detailed overview of your offerings, your target market, your competitors, your marketing and sales tactics, and your financial predictions.
Assemble a Stellar Team: Recruit staff members who resonate with your vision and principles, and invest in their growth and development. Cultivate a welcoming and inclusive work environment that promotes teamwork, creativity, and innovation.
Handle Finances Wisely: Keep a close eye on your earnings and expenditures, and devise a budget that matches your financial objectives. Regularly check your cash flow and make necessary adjustments. You might want to consider hiring a financial advisor or accountant to guide you in making sound financial choices.
Embrace Technology: Invest in technology to make your operations smoother, boost efficiency, and elevate customer experiences. Think about using cloud-based software and tools for managing your finances, customer relations, and marketing initiatives.
Prioritize Customer Service: Deliver exceptional customer service by paying attention to your customers' needs, addressing their feedback, and providing top-notch products and services. This approach will help you cultivate a loyal customer base and stimulate positive word-of-mouth publicity.
Stay Informed about Industry Trends: Keep abreast of the latest industry trends, best practices, and regulatory modifications that could impact your business. Participate in industry events, peruse industry publications, and network with fellow business owners to stay ahead of the game.
Expand Your Revenue Streams: Diversify your revenue streams by introducing related products or services, or by venturing into new markets. This strategy will help you offset risks and guarantee long-term financial stability.
Plan for the Future: Allocate a portion of your profits for savings and investments. Think about opening a retirement account, investing in stocks or real estate, or initiating a side gig to earn extra income.
Remain Agile and Adaptable: Be ready to adjust to fluctuating market trends, customer tastes, and technological progress. Stay flexible, be receptive to fresh ideas, and be prepared to modify your business strategy if required.
In summary, steering a successful business necessitates careful planning, strategic decision-making, and a commitment to financial stability and longevity. By adopting these clever tactics, you can fulfill your financial objectives, build a robust team, and establish a successful and sustainable business.
Recommended Reading:
“The Lean Startup” by Eric Ries
“The 4-Hour Work Week” by Timothy Ferriss
“The E-Myth Revisited” by Michael E. Gerber
Take care and God bless,
James.
Shandy Reed
Key Account Manager
14
Answers
Houston, Texas
Updated
Shandy’s Answer
Well, first you need an in depth understanding of your customer. Next, have a solid marketing plan and be sure you have a strategy for continued business. Is your business one where it will be a one time purchase or do you want repeat business on a regular basis. Will your business need employees? If so, consider what the roles and responsibilities will be. You want to maximize your resources and people and time are our greatest assets. Also, have fun with it! Every business and industry has ups and downs but try to enjoy the journey.
Rebecca Tang
Banking
1513
Answers
Hong Kong
Updated
Rebecca’s Answer
Thank you for your question. I am glad to hear that you would like to be an entrepreneur. Have you thought about what industry you would like to start your business?
Below are my suggestions :
1. Think about what industry you have interest or you have strength
2. Do some analysis on the industry, e.g. entry criteria, competition status, any alternative/substitutes, etc.
3. Take industry related courses and management course
4. Work in the industry some time to under the operation model and establish people network. You can earn the funding to start the business.
5. You can also prepare a business plan & proposal to the venture funds to seek funding for start up
6. Start the business online first if possible
Hope this helps! Good Luck!
Below are my suggestions :
1. Think about what industry you have interest or you have strength
2. Do some analysis on the industry, e.g. entry criteria, competition status, any alternative/substitutes, etc.
3. Take industry related courses and management course
4. Work in the industry some time to under the operation model and establish people network. You can earn the funding to start the business.
5. You can also prepare a business plan & proposal to the venture funds to seek funding for start up
6. Start the business online first if possible
Hope this helps! Good Luck!
Rebecca recommends the following next steps:
Alireza Poostindooz
financial consultant
41
Answers
Isfahan, Isfahan Province, Iran
Updated
Alireza’s Answer
Running a business can be a challenging yet exciting endeavor. Here are some smart ways to run a business efficiently and maintain financial stability:
1. Proper Planning and Strategy: Develop a comprehensive business plan with clear goals, objectives, and strategies. Regularly review and adjust your plan as needed to stay on track.
2. Focus on Core Competencies: Identify your business's core strengths and focus your resources on improving and enhancing those areas. Delegate or outsource non-core functions to save time and resources.
3. Effective Financial Management: Maintain accurate and up-to-date financial records. Regularly monitor cash flow, control expenses, and manage debt effectively. Consider working with a financial advisor or accountant to make sound financial decisions.
4. Build a Strong Team: Surround yourself with talented individuals who share the vision for your business. Delegate responsibilities, foster open communication, and encourage collaboration. A strong team can contribute to the efficient operation and growth of your business.
5. Embrace Technology and Automation: Leverage technology to streamline operations, enhance productivity, and improve customer experience. Use software and tools for accounting, project management, customer relationship management, and marketing automation.
6. Effective Marketing and Customer Relationship Management: Develop a targeted marketing strategy to reach your ideal customers. Focus on building strong relationships with your customers by providing exceptional service, personalized experiences, and addressing their needs.
7. Continual Learning and Adaptation: Stay updated with industry trends and constantly seek knowledge and skills to improve your business. Be open to changes and adapt your strategies accordingly.
8. Prioritize Customer Feedback: Actively seek customer feedback and use it to improve your products or services. Satisfied customers are more likely to become loyal, repeat customers and refer your business to others.
Regarding financial stability and growth, consider the following:
1. Budgeting and Saving: Create a realistic budget and diligently track your expenses. Set aside a portion of your profits for emergencies and long-term savings.
2. Diversify Income Sources: Explore ways to diversify your income, such as offering additional products or services, expanding into new markets, or establishing strategic partnerships.
3. Invest Wisely: Consult with a financial advisor to develop an investment strategy that aligns with your financial goals and risk tolerance. Invest in a mix of assets that offers long-term growth potential.
4. Manage Debt Wisely: Minimize unnecessary debt and manage existing debt responsibly. Understand the terms and interest rates associated with loans or credit lines and make timely payments.
Remember, running a business and achieving financial stability take time and effort. Stay focused, adapt to changes, and be flexible in your approach. 🚀💪
1. Proper Planning and Strategy: Develop a comprehensive business plan with clear goals, objectives, and strategies. Regularly review and adjust your plan as needed to stay on track.
2. Focus on Core Competencies: Identify your business's core strengths and focus your resources on improving and enhancing those areas. Delegate or outsource non-core functions to save time and resources.
3. Effective Financial Management: Maintain accurate and up-to-date financial records. Regularly monitor cash flow, control expenses, and manage debt effectively. Consider working with a financial advisor or accountant to make sound financial decisions.
4. Build a Strong Team: Surround yourself with talented individuals who share the vision for your business. Delegate responsibilities, foster open communication, and encourage collaboration. A strong team can contribute to the efficient operation and growth of your business.
5. Embrace Technology and Automation: Leverage technology to streamline operations, enhance productivity, and improve customer experience. Use software and tools for accounting, project management, customer relationship management, and marketing automation.
6. Effective Marketing and Customer Relationship Management: Develop a targeted marketing strategy to reach your ideal customers. Focus on building strong relationships with your customers by providing exceptional service, personalized experiences, and addressing their needs.
7. Continual Learning and Adaptation: Stay updated with industry trends and constantly seek knowledge and skills to improve your business. Be open to changes and adapt your strategies accordingly.
8. Prioritize Customer Feedback: Actively seek customer feedback and use it to improve your products or services. Satisfied customers are more likely to become loyal, repeat customers and refer your business to others.
Regarding financial stability and growth, consider the following:
1. Budgeting and Saving: Create a realistic budget and diligently track your expenses. Set aside a portion of your profits for emergencies and long-term savings.
2. Diversify Income Sources: Explore ways to diversify your income, such as offering additional products or services, expanding into new markets, or establishing strategic partnerships.
3. Invest Wisely: Consult with a financial advisor to develop an investment strategy that aligns with your financial goals and risk tolerance. Invest in a mix of assets that offers long-term growth potential.
4. Manage Debt Wisely: Minimize unnecessary debt and manage existing debt responsibly. Understand the terms and interest rates associated with loans or credit lines and make timely payments.
Remember, running a business and achieving financial stability take time and effort. Stay focused, adapt to changes, and be flexible in your approach. 🚀💪
Joe Stringa
CEO / Operating Partner
17
Answers
Jackson, Mississippi
Updated
Joe’s Answer
Becoming an entrepreneur involves a combination of mindset, skills, knowledge, and action. Here are some steps to help you embark on your journey as an entrepreneur:
Identify Your Passion and Purpose: Start by identifying your interests, passions, and strengths. Consider what you love to do and what problems or needs you are passionate about solving. Your business idea should align with your values and personal mission.
Research and Validate Your Idea: Conduct market research to assess the demand for your product or service. Identify your target audience, understand their needs and preferences, and assess the competition. Validate your idea by gathering feedback from potential customers and testing your product or service in the market.
Develop a Business Plan: Create a detailed business plan outlining your business concept, target market, value proposition, marketing strategy, operational plan, and financial projections. A well-thought-out business plan will serve as a roadmap for your entrepreneurial journey and help you secure funding if needed.
Acquire Necessary Skills and Knowledge: Develop the skills and knowledge necessary to succeed as an entrepreneur. This may include skills such as leadership, communication, negotiation, marketing, financial management, and problem-solving. Consider taking courses, attending workshops, or seeking mentorship to enhance your skills and expertise.
Secure Funding: Determine how you will finance your business venture. Explore options such as self-funding, bootstrapping, crowdfunding, loans, or seeking investment from venture capitalists or angel investors. Develop a financial plan and budget to ensure you have the necessary funds to launch and grow your business.
Build Your Network: Networking is essential for success as an entrepreneur. Build relationships with other entrepreneurs, industry professionals, mentors, and potential customers. Attend networking events, join industry associations, and participate in online communities to expand your network and gain valuable insights and support.
Take Action: Finally, take action and launch your business. Start small, test your ideas, and iterate based on feedback and results. Embrace challenges and setbacks as opportunities for growth and learning. Stay persistent, adaptable, and resilient as you navigate the ups and downs of entrepreneurship.
By following these steps and staying committed to your vision, you can become a successful entrepreneur and turn your business idea into reality. Remember that entrepreneurship is a journey, and success often requires patience, perseverance, and continuous learning.
Identify Your Passion and Purpose: Start by identifying your interests, passions, and strengths. Consider what you love to do and what problems or needs you are passionate about solving. Your business idea should align with your values and personal mission.
Research and Validate Your Idea: Conduct market research to assess the demand for your product or service. Identify your target audience, understand their needs and preferences, and assess the competition. Validate your idea by gathering feedback from potential customers and testing your product or service in the market.
Develop a Business Plan: Create a detailed business plan outlining your business concept, target market, value proposition, marketing strategy, operational plan, and financial projections. A well-thought-out business plan will serve as a roadmap for your entrepreneurial journey and help you secure funding if needed.
Acquire Necessary Skills and Knowledge: Develop the skills and knowledge necessary to succeed as an entrepreneur. This may include skills such as leadership, communication, negotiation, marketing, financial management, and problem-solving. Consider taking courses, attending workshops, or seeking mentorship to enhance your skills and expertise.
Secure Funding: Determine how you will finance your business venture. Explore options such as self-funding, bootstrapping, crowdfunding, loans, or seeking investment from venture capitalists or angel investors. Develop a financial plan and budget to ensure you have the necessary funds to launch and grow your business.
Build Your Network: Networking is essential for success as an entrepreneur. Build relationships with other entrepreneurs, industry professionals, mentors, and potential customers. Attend networking events, join industry associations, and participate in online communities to expand your network and gain valuable insights and support.
Take Action: Finally, take action and launch your business. Start small, test your ideas, and iterate based on feedback and results. Embrace challenges and setbacks as opportunities for growth and learning. Stay persistent, adaptable, and resilient as you navigate the ups and downs of entrepreneurship.
By following these steps and staying committed to your vision, you can become a successful entrepreneur and turn your business idea into reality. Remember that entrepreneurship is a journey, and success often requires patience, perseverance, and continuous learning.
Anthony Kofi Hene-Amoah
Project Analyst/Advisor, Career Advisor, Translator/Editor
144
Answers
Jema, Brong Ahafo Region
Updated
Anthony’s Answer
Hi,
Please, note the following, concerning smart ways to run a business :-
1. Have INTEREST in the kind of business.
2. Good knowledge in the business, especially, regarding the general activities.
3. Location of the business.
4. Good marketing conditions.
5. Favourable marketing conditions.
6. Availabilty of the required capital/finances.
Best regards.
Please, note the following, concerning smart ways to run a business :-
1. Have INTEREST in the kind of business.
2. Good knowledge in the business, especially, regarding the general activities.
3. Location of the business.
4. Good marketing conditions.
5. Favourable marketing conditions.
6. Availabilty of the required capital/finances.
Best regards.
david kirk
Retired Computing Manager
472
Answers
Syracuse, New York
Updated
david’s Answer
Audrey, you may be asking too much. Being financially stable and saving and investing are rare for businesses. Consider that the risk is high. Over 20% of businesses in the U.S. fail in the first year, and 65% fail by the tenth year. Remember Sears, Roebuck? And Toys R Us? Huge businesses that failed. I do not want to scare you, but in starting a business, you need to do extensive preparation to reduce the odds for your business. If there are many similar businesses, then you face high competition. If your business has little or no competition, then you risk not building a desire for your product or service. To reduce the odds:
- do extensive market research on the prospective audience, the competition, the true startup costs, and whether you have the funds to invest in the business, and also have enough funds to live on for at least a year until the business shows a profit.
- develop a detailed list of all the startup costs, such as rental space, advertising costs, tax advisor fee, legal fees, license fees (if any), salaries for staff, income for you, supplies, products to sell, property insurance, liability insurance, among others.
- prepare yourself to work seven days a week for at least a year until the business stabilizes.
Running a business can be a huge feeling of accomplishment, and an opportunity to be an important voice in your community. I wish you well.
- do extensive market research on the prospective audience, the competition, the true startup costs, and whether you have the funds to invest in the business, and also have enough funds to live on for at least a year until the business shows a profit.
- develop a detailed list of all the startup costs, such as rental space, advertising costs, tax advisor fee, legal fees, license fees (if any), salaries for staff, income for you, supplies, products to sell, property insurance, liability insurance, among others.
- prepare yourself to work seven days a week for at least a year until the business stabilizes.
Running a business can be a huge feeling of accomplishment, and an opportunity to be an important voice in your community. I wish you well.
Katherine Avery
Run a music studio and teach private music lessons; teach college-level religion classes
222
Answers
Spanish Fork, Utah
Updated
Katherine’s Answer
The two best resources I've found for getting a business going are Dave Ramsey's book EntreLeadership, and this workbook (https://www.churchofjesuschrist.org/bc/content/ldsorg/topics/self-reliance/2017/14678_sgmb_book_eng.pdf?lang=eng).
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