Useful Tips When Running Your Own Company

[MarkB]

The more successful companies often make it look very easy but there are many different aspects to take into consideration. Here are some useful tips when running your own company:

• Never get behind with your tax as it can prove nearly impossible to catch up
• Do not depend too much on one or a small group of customers in case they let you down
• Treat friends, family, acquaintances and employees exactly the same if they work for you
• Ensure that you have the legal framework in place to cover yourself in the event of any accidents
• Keep a very close eye on cash flow
• Attracting new customers is the Holy Grail but ensure that you keep existing customers
• Be competitive with pricing but do not get involved in a race to the bottom
• Quality will always rise to the top so do not compete with inferior companies
• Always have an end game in mind
• If possible build up a war chest of cash the event of unforeseen expenses

 

[Ludmila]

The more successful companies often make it look very easy but there are many different aspects to take into consideration. Here are some useful tips when running your own company:

• Never get behind with your tax as it can prove nearly impossible to catch up
• Do not depend too much on one or a small group of customers in case they let you down
• Treat friends, family, acquaintances and employees exactly the same if they work for you
• Ensure that you have the legal framework in place to cover yourself in the event of any accidents
• Keep a very close eye on cash flow
• Attracting new customers is the Holy Grail but ensure that you keep existing customers
• Be competitive with pricing but do not get involved in a race to the bottom
• Quality will always rise to the top so do not compete with inferior companies
• Always have an end game in mind
• If possible build up a war chest of cash the event of unforeseen expenses

Hi there, GREAT advice! I always advice the same to my clients. I am an accountant and a tax adviser so I know what you are talking about.

 

[aishley]

Great advice you shared here. It definitely helps in running the new business, also, to grow it and improve sales and conversions, it is necessary to invest in new digital marketing strategies as they help in the lead generation which is quite essential for businesses.

 

[Employer]

Only now will we see how many companies built up a war chest for troubled times although to be fair who would have thought we would be in this situation. This is not even once in a generation, its probably once in a hundred years.

 

[selfemployed]

When all said and done, cashflow is King and you should always keep an eye on that first. It is no good winning huge contracts if you dont have the cashflow to finance them before payment.

 

[Needhelp]

Managing cashflow and growth is paramount if you have your own business. While nobody wants to turn down business, if it would kill your cashflow then either resolve the issue with more funding or delay/turn away the offer of more business Do not get into a situation where you are shelling out loads of money to produce goods for clients but putting yourself in a situation where you could become insolvent.

 

[selfemployed]

Here are some very interesting facts about start-ups:-

Startup Failure Rate And 80+ Other Startling Startup Stats

Wondering what the startup failure rate is? Read on for this and many more stats about startups. Only the latest data from independent studies and reports.

www.smallbizgenius.net

 

[Needhelp]

Sometimes I think it is good to know the potential downside before you start a venture - also avoid the mistakes. I think the biggest mistake is being underfunded from the start - give yourself a few months to get established before you bring in any meaningful income.

 

[DataGuardsman]

All good and valid points but like most businesses, making sure you legally collect and use the data of your business and retail customers is absent. If you have any customers then you need to apply the GDPR/DPA/PECR (marketing) rules, without exception. The consequence of not doing so is (a) you are giving each customer an automatic claim of £1,000 just for collecting it, and (b) the same again each time you put it on Sage, Office 365, your accountant, your invoice discounter, your sub-contractors. If you look at it the other way, as a customer, don't you want to be certain that the business you are giving your valuable, personal data to know what they are doing with it, and protecting it?

 

[lookingforadvice]

Never be afraid of debt!

Without debt it will be difficult to ramp up the size of your business and ultimately sales and profitability. Respect debt, do not overextend your finances but never be afraid of debt.

 

[Karen Chen]

- you have to love what you do
- got to understand accounting. Make sure business stays financially healthy
- if one is doing international business, that is, have suppliers or customers in other countries, make want to consider it is economically beneficial to set up 'virtual' company in low tax city/country such as Hong Kong where tax rate is low.

 

[Okdar]

Great advice you shared here.

 

[gabrielakurtz]

Thanks for sharing these valuable tips! I agree with all of them—keeping an eye on cash flow, maintaining a solid legal framework, and focusing on customer relationships are all key to running a successful business. It’s also a good reminder to not get too comfortable and always be prepared for the unexpected. Great discussion!