Top 5 Tips for Small Businesses
If you are starting a new small business or you are already a small business owner looking for a little reminder on the best practices, we have put together our top 5 tips for Small Business Owners.
#1 KNOW YOUR STRENGTHS, OUTSOURCE YOUR WEAKNESSES
The number one piece of advice that Harvard Wealth would like to share with Small Business Owners is to be aware of your strengths and outsource your weaknesses. If you can sell ice to eskimos, that’s great, do that! If you are not comfortable with creating a strategic financial plan, outsource it to someone who can.
#2 REVISE YOUR BUSINESS PLAN OFTEN
You should revise your business plan frequently, so that it remains meaningful. We recommend that you revise your business plan at least 6 monthly, however, if business is booming then you may need to review it a little more frequently.
#3 CONDUCT A SWOT ANALYSIS
A SWOT Analysis looks at 4 key areas of your business – your strengths, your weaknesses, your opportunities and your threats. This process allows you to have a clear picture of exactly where your business is positioned and to put steps in place to promote your strengths and opportunities as well as to counteract any identified weaknesses or threats.
#4 GATHER YOUR RESOURCES
If you are starting to plan a new business venture – be it a new business or simply a new area within a current business – make sure that you have all of the resources you need before leaving your current job/role. This includes having your business plan completed, reviewing your finances and insurance needs and applying for any required finance.
#5 SET UP AN OVERDRAFT
Obtaining finance is harder once your business is established because your financier will require the businesses financials. So overdrafts are best setup early on if possible, to provide your business with flexibility going forward. The overdraft doesn’t necessarily need to be used, it is just a defensive strategy to provide you with a choice in case of cashflow hiccups. For start-ups there are many support groups that you can reach out to, including Harvard Wealth for financial advice and many others that will specialise in your field.