Running a small business is the dream of many people who work for others. To run a small business means that a person is his own boss, but it often also means long work days and hard work. Running a small business is often more difficult than working for someone else, but it can also be much more rewarding.
Instructions
1. Take care of the purchasing and acquisitions. In a larger business, there might be an employee or even a department that is devoted to purchasing items for the company. In a small business, the owner usually has to take care of this. That means finding the best price for the needed items and arranging for their transport.
2. Make sure you have the right types of insurance for your business. This will usually mean insurance on the inventory of the business, insurance on the business equipment and insurance on the premises. If customers will be visiting the business in person, liability insurance will also be needed.
3. Hire people to do what you can't. If the business is expanding faster than you can manage, or you simply have too much going on in the business for one person to handle, hire someone to help out. Hiring someone on even a part-time business can free you up from having to do some of the less skilled work and allow you to concentrate on the tasks only you can perform.
4. Keep track of profits. To run a business effectively, you must know when the business is making a profit, and how much. If the business starts losing money, steps have to be taken to change the way you do business. If the profit margin is high, consider expansion.
5. Hire an accountant or do your own taxes. Many small businesses are responsible for paying quarterly taxes. Others pay at the end of the year. Getting an accountant to help take care of the tax issues will save the business owner from owing penalties on late taxes. A less expensive alternative is to hire an accountant to consult with about tax issues when the business begins. Afterward, the business owner can use tax software to implement what the accountant suggested.
