How to Run Your Business Effectively | Cigars with MoneySmartGuy

As an entrepreneur, we would like to build a business that thrives. A business that not only enriches our lives but the lives of people around us as well. That includes employees, family members, and the overarching community. It is, therefore, very important to become a capable entrepreneur. To do so, we need to learn and grow quite a lot.

Running a business effectively is no easy task. There are lots of moving parts and we need to keep the whole machine well oiled. Only an entrepreneur who understands the fundamental aspects of running a business can ensure its smooth operation.

Fundamental Aspects:

Cash Flow

The first thing we need to remember as an entrepreneur is the primary reason for the existence of a business. Any business in the world exists for one purpose only. And that is to make money. Cash flow is the very blood flow of a business. Without it, a business is starved and it starts to fail.

When we have a healthy cash flow, it validates our business and it will be a lot easier for us to recruit. Because then, we can pay people, we can spend on marketing, we can get our office, we can invest in so many other things and the business can start growing its tentacles. But all that growth has to come through cash flow. This is the number one responsibility of an entrepreneur.

Skill Sets

The second important thing to remember is that the difference between an entrepreneur and an employee is the skill set. Therefore, we need to make sure that we not only obtain the right skill sets but make efforts to master them as well. There are many skill sets that are vital for an entrepreneur.

The first skill we need to master is ‘friendships to conversion skills’. This means leveraging our friendships to make sales and using the growing network of friends to ensure recurring sales.

The second skill to master is the financial skill. Understanding the basic forms of money and how it works will help us navigate the various business decisions that are vital for its growth.

The third one is leadership skills. This is one of the most important skills to have and it cannot be stressed upon enough. A leader needs to lead by example. Everything rises and falls with a leader.

Confidence

As an entrepreneur, we need to be confident in our business and ourselves. If we are confident, it will be apparent from a mile away and that is what influences others in a positive way.

There are many simple ways by which we can increase our confidence levels. The first one is to simply say please and thank you and to have an attitude of gratitude.

The second one is showing up on time, which really means showing up early. It builds professionalism and puts the ball in our court. The third one is to do what we say. Whatever we declare, we must follow through with it.