Managing a small business is no easy feat. Smaller companies have less of the resources and connections that insulate large corporations from potential problems, meaning that the stakes are never higher for a business than in their first year of operation. This can be daunting for small-business owners, but there are ample methods that can help alleviate these concerns. Here’s what you need to know.
Managing your finances. Finances are the cornerstone of all commerce, for obvious reasons. Businesses are primarily concerned with making as much money as possible in order to offset expenses and earn a profit. Doing so means coming to terms with each of these figures and how they interact. Finances can be complicated for some, and hiring an accountant is a great way to rectify that. An accountant is almost always a good idea, because it takes a certain proficiency to keep accurate and thorough financial records and make the kind of sound financial decisions that might elude the average person. For example, you’ll need to understand revenue recognition under ASC 606 in order to estimate your net worth and report your earnings.You’ll also need to know how to file your business’s taxes and how to classify your worker’s taxes in order to make sure that they have the right paperwork come tax time.
Understanding your market. Marketing is an essential part of any business, because it is the primary means by which you can spread awareness of your business and create a loyal customer base. This means that your marketing needs to be honed to a razor’s edge, and you’ll need market research in order to make that happen. In order to know the best marketing strategies available to your business, you’ll need to get to know your audience. Your target market is defined largely by the type of business you own, as a certain kind of person is interested in, for example, skate boards. The group or groups of people that are interested in your products or services are known as your target demographics, and they are largely interconnected with your target market. However, these groups are not monolithic, and getting to know what they want from a business like yours or how they feel about the services you’ve provided requires some effort. Surveys are a time honored method of conducting market research, but social media provides a much quicker, much easier, and much cheaper alternative…
Source: The Staffing Stream