Being an entrepreneur and maintaining a business is not an easy matter. There are thousands of issues that should be addressed by the small business owner. Payroll, payments to suppliers, credit payment, rent payment, utility payments, and many accounts that have to be settled. The constant concern to generate sales, increase revenue, get customers and pursue defaulters. Owning a small business includes everything mentioned, but also other situations as they arise daily.
Although there are careers in business that is supposed to prepare you to manage your own company, I realize that teachers remain distant on issues of how owning a small business. And don’t speek about how to be managers in multinational companies after graduation, let’s talk about how we could improve between small business owners. There is no doubt of the new wave of entrepreneurship is going directly to the tech industry, but the small business could also start in any other.
In the following point, I will detail some aspects I consider important to know how to be a small business owner.
Owning the business
Obviously, you need to have the business ownership. Whether that if you created a partnership with your wife or husband or you chose to register as an individual propietorship, it is essential to keep in own hands the stocks of the new business. For each country vary the steps to start up a business, and most of small businesses are under the scheme of a single person, since it is the easiest and most economical method for starting one.
I don’t mention much the steps to create a business, but I would like to emphasize about the ownership. You’ve probably heard phrases like “If you do not build your dreams, someone will hire you to build theirs” (Tony Gaskins). A person who works in a multinational or stock listed company is devoting his time to grow the value of such stock. An piece of paper with value that may not belong to that person. This might be something not very appealing to many people, so they usually seek to start a business. Some with the idea of going big and some others with the idea to have something by their own. The important thing here is that for the creation of personal wealth is necessary to dedicate time to think and act to support the growth strategies of your own business.
On the other hand, family businesses in gives some different aspects, because if the next generation start to work within the business, their time is being devoted to the family, and not for strangers. Besides, if there is agreement between the founders, they can inherit a business that must grow and eventually transfer again the company to the next generation.
Whatever the reason is, the important aspect is that if you want to own a small business, it is vital that the ownership is under sole propietorship or be part of the owning group. This will give legal certainty and legal authority over the assets to build wealth.
Small business administration
In the following article I give several tips on managing a small business. Operations of any company are the day-to-day of every small business. Being on time to open, and wait until the last customer leaves to close. The administration is an element that can be very simple or very complex. It is important to maintain an order when the company grows to have a better control, otherwise everything will seem very difficult like being on a maze.
Also, there are Serial Entrepreneurs Stories that show different views of how they made a comeback on their businesses.
Small business owner salary
What should be the salary of the owner? It may be a doubt that many people who own a small business have. There are many who thinks that the cash flow of the business is the owners salary, but it isn’t. Not having stipulated a remuneration of oneself as a business owner can generate confusion that could even lead to bankruptcy of the business.
Some believe that to calculate your salary as the owner you must calculate all your personal expenses and based on that decide your salary. Moreover, it is mentioned that you should do some research on how much the market pays in your industry.
For me this can be very complicated and very subjective. In my opinion the payroll of a company should be between 15% and 30% of their income. So that calculated amount must be reduce the salary of employees and establish the rest of it as a salary. But, you want to earn more? So your goal is to grow the business income to give you a better salary.
Tips for small business owners
In the next infographic of Make it Cheaper, it is mentioned some advices given by other small business owners.
The sacrifices and rewards of being a small business owner
Source: Constant Contact