7 tips every small business owner needs to know.

There are literally millions of businesses that are flourishing in the U.S. and around the world. With all that success, isn’t it nice to know that you don’t need to enter the entrepreneurship pool as a rank amateur? Out of all the seemingly countless ideas that have worked for others, we have culled some of the most outstanding for you to peruse and benefit from as you look to expand your enterprise.

1. Your employees are your greatest asset and should be treated as such.

Your products might be unparalleled, and you could be flush with cash. However, failing to realize the importance of your staff could easily erode every other advantage you are working so hard to build. That’s because it is your personnel who will be the face of your brand and the living ambassadors of your mission and passion.

One of the primary ways to demonstrate how much they mean to you is to recognize their hard work. This can be done in numerous ways, including the following. 

• Celebrate accomplishments in your company publication, blog, or newsletter.
• Send a press release to your local radio or television station or newspaper.
• Say a sincere “thank-you” with a small gift, free parking, or even a day off for an especially beneficial effort.
• Better still, reward achievements with additional opportunities that allow workers to grow professionally, benefiting both you and them in the process.

2. Understand the different kinds of debt.

We have been conditioned to believe that it is always bad to owe money. However, this is not necessarily the case, especially for a business owner. In fact, there are definite differences between good and bad debt.

Good debt is both necessary and manageable, serving to move your business in a positive direction. By contrast, bad debt bogs down or even paralyzes your company. It results from loans with unsustainably high interest rates that you will have difficulty paying back. Another source is if you borrow money to purchase equipment or services you don’t actually need.

3. Bolstering your business credit can benefit your company.

Improving your credit profile aids your company by turning it into an appealing investment for lenders, thus making it easier to get a loan that will enable you to grow your operations even further. There are three major ways to enhance your business credit.

• Figure out a way to get into “good” debt. For instance, take out a business loan. Or get a business credit card, use it, and pay it off regularly. You’ll be amazed at how quickly your score rises.
• Incorporate your business. This means that you make it into a separate legal structure with its own tax status and employer identification number that is different from your Social Security number. Consequently, you will be able to distinguish personal from business debts and will no longer need to commingle funds.
• Create a business plan. This evolving document is vital regardless of the size or scope of your company. It is the road map that determines your financial course, elaborates upon the competitive landscape, and describes the goals and challenges you expect to face.

Once you put these best practices in place, you will be well-positioned to embrace beneficial debt and keep the bad kind to an absolute minimum.

4. Know the importance of both DIY and out-sourcing.

Pulling yourself up by your bootstraps is a long-standing American tradition that definitely has a time and a place. However, you should always carefully consider if it is possible to accomplish a particular task without assistance or if it is better to enlist the help of experts.

For instance, most owners can easily create an LLC, a will or an online privacy statement to facilitate ecommerce purchases by clicking onto one of any number of helpful websites that are readily accessible. On the other hand, litigation or complex contracts are another story. In those cases, it is wise to enlist the expert advice of a law firm. The same goes for complying with complex data security rules in preparation for an audit. There is no shame in benefiting from the knowledge of a company whose sole purpose is specializing in these sophisticated tasks.

5. Limit your risk.

Launching and running any business carries inevitable sources of risk. However, that doesn’t mean you can’t take steps to lessen the effects of these risks. To that end, implement the following strategies.

Obtain insurance to protect you should the worst happen. This includes the following.

• Liability insurance to cover the cost of your legal defense if you are sued for negligence as well as to cover the cost of the debt up to the policy limit.
• Property loss and business interruption.
• Disability coverage.
• Workers’ compensation to cover lost wages and medical expenses if employees are injured on the job as well as protection against lawsuits if a worker sues you.
• Create multiple sources of profit. When you make money via various channels, you will not be devastated should a downturn occur in one of your sectors.
• Implement robust data security procedures that protect the data your customers enter into your smart terminal or mobile card reader. To accomplish this goal, follow the stipulations set forth in the Payment Card Industry Data Security Standard (PCI DSS). Make sure that all third-party vendors with whom you partner do so as well, and, as we said above, collaborate with a security consultant to ensure that all your bases are covered.

6. Engage in smart, modern marketing.

The ways to spread the word about your business have evolved exponentially in recent years. In addition to old-fashioned ads on radio, television, and newspaper as well as business card distribution, you can now have a website, launch a robust social media presence, create videos, write blogs, start a podcast, send emails, or work with media influencers.

Fortunately, most of these solutions are very inexpensive and easy to implement. Moreover, they appeal to different customer tastes, enabling you to cast your marketing net wide in order to maximize your business’s reach and scope.

7. Treat your website as a highly effective digital ambassador.

Whether all of your sales come from online purchases or they are only supplementing a physical store, your URL and the site connected to it is tremendously important. It provides new customers with their first impression of your store and is a constant source of updated information that you can use to keep everyone interested and engaged.

The simple truth is that your website is a reflection of your entire business. If it is polished, secure, credible, easy to navigate, fun, and dynamic, that is how customers will see your entire brand. Take steps to ensure the most positive online experience, and even your in-store sales will grow.

It is no easy task to start a new business, and it is still more challenging to maintain and grow a company. Taking the time to build a strong foundation for your burgeoning operation is one of the smartest investments you will ever make. When you appreciate your employees, make smart financial decisions, minimize risk, market intelligently for the modern age, and collaborate with experts, you have some of the most important keys that will combine to forge your ultimate growth and success.