Must Read: Don’t Start a Business without Understanding These Key Areas First

Forum 8 years ago

Must Read: Don’t Start a Business without Understanding These Key Areas First

Are you considering starting your very first business this year? Have you been working in the area of natural living for years and think it’s time to branch out on your own? If so, that’s an exciting step to take, but one you shouldn’t take blindly.
Even if it doesn’t feel like you’re switching careers, starting and running a venture takes a wide variety of skills and knowledge that not all people realize at first. From understanding finance and the key business reports to read each month, to creating a brand and selling your products or services, there is much to be aware of. Read on for some of the vital areas of operating a company you should start learning about today.

Finance

It may not be the most scintillating topic for many people, but finance is definitely one of the most important. Now, while it’s certainly possible (and common) to hire an accountant to help you with your business finances, it’s also a very good idea to learn the fundamentals yourself too. It pays to be familiar with reading and extrapolating data from documents such as balance sheets, profit and loss statements, tax returns, sales and cash-flow projections, and loan paperwork.

As the one responsible for the financial health of your business, you need to be comfortable with finances so that you can make everyday decisions about your organization’s future, whether large or small. You are the person who needs to work out, for example, how to optimize efficiency, cut costs when required, come up with ways to increase revenue or find money for new staff members. You can’t do this properly if you don’t actually know what numbers you’re working with.

During the day-to-day operations of an organization, you want to be able to quickly and easily run and then analyze reports so that you can see with a glance how your company is currently tracking, and what will be required for it to grow. You also need to be able to understand the numbers in order to deal with investors, lenders and suppliers.

It’s helpful to be able to complete simple tasks yourself too, rather than having to pay for an accountant to do them. As well, as the owner of a business, you need to be able to notice if errors have been made or fraudulent transactions processed.

If you feel overwhelmed by all the data and reports to wrap your head around, keep in mind that the best way to learn is typically by jumping straight in. Spend as much time as possible reading all of the most important financial reports and data accumulated for your business, and discover how to navigate whichever accounting system is used so that you can run your own reports.

These days most online platforms have numerous videos and other tutorials available that you can utilize to quickly learn new systems. Even just one or two hours spent on this each week will quickly help you build up your financial competence.

Branding

Marketing as a whole is another critically important part of business, but branding, in particular, is something you need to understand early on. To be a successful entrepreneur you need to not only create a memorable and trustworthy brand for your firm, but also for yourself — something that many fledgling entrepreneurs don’t realize.

Keep in mind that in order to attract the interest of investors, clients, potential staff members, reporters and more, both you and your business have to be noticed, and then found appealing as well. People want to invest their dollars, time, or energy into companies and leaders which are credible, interesting, helpful, reliable, and which align with their own values.

In order to have this impact though, first you need to understand exactly what it is that you and your business can offer people, and how you differ from others in the marketplace. Don’t launch a new organization without first having spent time discovering this “unique selling proposition,” and looking for ways to demonstrate it.

Sales

Selling, of course, is another vital part of having a thriving company. Even if this is an area that scares you or that you really dislike, and that you plan to outsource as soon as possible, it’s still something that you need to have some knowledge of. After all, whether you like it or not, entrepreneurs are faced with sales in more ways than just winning clients. From pitching yourself and your company to potential investors or loan officers, to negotiating with suppliers, attracting new employees to your team and more, selling in some capacity is a way of life.

One of the most effective ways to improve your sales technique is to simply focus on how you can help others to find solutions to their problems. Try to understand what motivates people and what they’re searching for, and you’re more likely to be able to come up with ways that you can assist them while furthering your own goals at the same time.

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