10 survival tips for small business owners

The reality for many small business owners is that they were forced to start something of their own. Maybe they were laid off, laid off, or couldn’t find a job.

What this means is that small business owners often haven’t even had time to get training in basic small business practices like finance, human resource management, and marketing.

The other real danger is that the small business owner works very hard in the business, trying to drive more sales, handling negotiations with vendors, doing payroll at the end of the month, and trying to get big customers to pay on time. they don’t catch big problems in his business before they become a threat to the survival of his business.

Newspaper reports recently indicated that around 4,000 companies went bankrupt in 2013. The causes of these business failures were not reported, but it doesn’t take a rocket scientist to calculate the usual fatal mistakes: poor business decisions, running out of cash, a market that has dried up or even an employee when employees who have embezzled the company.

Here are 10 practical survival tips for small business owners:

1. Stay within your “circle of competition”: Investor Warren Buffett avoids investing outside of his “circle of competition.” Starting something new, venturing into a new market requires competence that an existing small business owner may not have. Stay with the fabric in bad times.

2. Stay Focused on Cash Flow – When the cash runs out, the game is over. In tough economic times, it’s important to monitor cash flow more frequently, if not daily. Set up a simple system and watch your cash like a hawk. Big customers want to take forever to pay and suppliers want their money now. This makes it vital to manage cash carefully.

3. Don’t sign bail bonds: When you run out of cash, the temptation is to go to the bank to increase your overdraft. Do not sign guarantees that for a small loan require the confiscation of all your business and personal assets. Enough talk.

4. Temptation: Act ethically at all times – Even what may seem harmless will become a major problem if it involves an unethical business practice. Make sure you have a clear red line where you will not cross. In this economy with desperate, unethical and exploitative people, small businesses are on the rise. Detect them in time and avoid them at all costs. Some do not pay their taxes, operate illegally and do not comply with health regulations and should be closed down by the corresponding authorities.

5. Take time to work on your business: Working on your business gives you very little time to work on your business. Take some time each week to review where your business is headed and how you can improve your operations and grow your market.

6. Insurance coverage: Have fire, theft, and personal liability insurance coverage – It seems like a no-brainer, but how many small business owners have adequate insurance? Don’t kill yourself for this.

7. Business Advice: The biggest risk a company often faces is poor business advice. Airlines and utilities are virtually bankrupt due to poor business decisions and need to be rescued. Double check the trading advice and trust your own common sense and knowledge.

8. Avoid dangerous number 1: There is a danger of having a big customer or a key supplier. Check your business for this type of risk and make backup plans.

9. Watch for unusual employee behavior: One of your employees could be handling too many critical tasks, employees could be taking inventory without you knowing, and finance or accounting employees could be involved in a billing scam. Watch out for suspicious behavior.

10. Be frugal: Keep costs low and avoid unnecessary purchase of new assets. Set a cost reduction percentage goal for your small business and stick to it.

These 10 small business survival tips are just a few that any small business owner should keep in mind during these economic times.

If you are in any way concerned that there may be hidden or unseen risks in your business, seek out the right professionals or a business advisor before it is too late.

You may hold a grudge against them for a professional fee, but when you consider it it really is a pittance compared to the cost of closing your doors.