Have you been employed in a business that has left you feeling demotivated and tired? You know that you could run that business better yourself?
It’s exciting to think you will work in the way you know is best, with a team who are equally as devoted as you are. You will be making good money and having time with your loved ones.
But the reality is, being your own boss is hard. The days are longer, especially when you’re starting up. There is a massive difference between being an employer and being employed.
In this blog we are going to look at
#Becoming the Boss
#Defining your Why
#How to get to the point where you are working on your business rather than in it.
#Managing Cashflow
#Finding and Retaining Talent
Becoming the Boss
Obviously, the most significant differences between being an employee and a business owner lies in the level of responsibility and autonomy. As an employee, you typically have a defined role. However, as a business owner, you become the captain of your ship. You have the freedom to set your own goals, define your strategies, recruit and retain employees. You make the decisions that directly impact the direction and growth of your business.
But how do you make these important decisions? Our top tip – understand how your business operates in the market and what your financial information is telling you. You are required by law to submit accurate accounts to HMRC. As a director, you must sign these, but what are you signing? These accounts reflect what has happening in the last year, but did you know that they can help you look at the future of your business too? If you have an accountant, how are they explaining this to you? Does your accountant work with you to build an action plan to support you with your business goals and growth? If so, brilliant, they’re a keeper! If not, find one that does.
Defining Your “Why”
When we ask business owners ‘why’ they do what they do, it’s usually because they’ve worked somewhere and feel that they could run things better themselves. For most business owners, when you delve a little deeper you find their true ‘why’ and it’s never just ‘to make money’.
Your ‘why’ forms the centre of The Golden Circle – a concept developed by Simon Sinek in his book, Start With Why. The Golden Circle challenges us to examine the emotional core of what makes your team and customers buy into a company. The next layer is your ‘how’ and the outer layer is your ‘what’.
Your ‘why’ is simply the most important message for marketing your business. It’s your purpose. You should be able to articulate this in seven words or less and it should be broad enough to reflect what you do but not be specific to your current product or service offering.
Now let’s be honest, just knowing and articulating your ‘why’ isn’t going to mean your business will be an instant success, sorry. But by focusing on your ‘why’, you’ll develop an emotional connection with your customers; and they’re likely to buy based on emotion. By acting, thinking, and communicating from the inside of The Golden Circle out, you’ll attract the right fit customers and team members who will become raving advocates.
If you need help implementing The Golden Circle in your business, get in touch.
Working on Your Business, Not in It
One of the common pitfalls for new business owners is getting bogged down in the day-to-day operations, working “in” the business rather than “on” it. While it’s essential to be hands-on, especially in the early stages, it’s equally important to focus on the bigger picture and strategic growth of your business.
Working on your business involves delegating tasks, building systems and processes, and developing a scalable business model that can thrive even in your absence. By leveraging your time and resources effectively, you can position your business for long-term success and avoid burnout by spreading yourself too thin.
This doesn’t have to mean taking on staff. Elements of your business can be outsourced to others with experience in the things you don’t know or have time to devote to. For example, bookkeeping and payroll are time consuming so get others to do this for you.
Managing Cash Flow
Maintaining healthy cash flow is critical for the survival and growth of small businesses. However, fluctuations in income, delayed payments from clients, and unexpected expenses can disrupt cash flow management, leading to financial strain. Whether your bank (or CQC) has requested a Cashflow Forecast or not, every business owner needs an understanding of cash and liquidity to make better business decisions.
How many times have you felt really busy and then wondered why your bank balance isn’t showing the cash value of this ‘busyness’? Or maybe your accountant says “well done looks like you’ve had a profitable year” and you’re thinking ‘really, where is it then?’
This lack of connection and clarity over what’s happening in your business compared to what’s happening with your cashflow can and does cause the failure of many businesses.
Having that clarity over your cashflow is crucial for any business owner especially if your business is your main source of income – and more so if you have employees.
Retain and Recruit Top talent
Small businesses often struggle to attract and retain skilled employees. Additionally, recruiting and training new employees can be time-consuming and costly for small business owners. As an accountant we’re not just about the numbers in isolation. The numbers are a result of what happening day to day in your business. So if you are struggling with recruiting and retaining the best employees for your team, it’s our job as your accountant to work with you to understand what impact it’s having, which contracts are profitable and what benefits you could offer your employees. Check out our previous blog for more
Conclusion
Remember, running a business is hard. With passion, perseverance, and a clear sense of purpose, you can overcome obstacles and achieve your goals.
Want to know more on how to charge your target customer or client, see our blog Knowing Your Worth
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