What we know for sure, have seen many entrepreneurs start their enterprise with great enthusiasm, ideas and dreams, but they stumble mid-way. Instead of rising with renewed vigour and strategies, they just crumble and disintegrate with permanent scar of failure and heavy debts. One of the main reasons is lack of business experience, market research, changing technology, cost of production and before analyzing the scale at which they need to operate to meet costs. All this ultimately results in mismanagement of working capital due to which vicious circle of delays in payment of Government Dues, labor dues, payment to suppliers thereby affecting working operation cycle business.
From the practical experiences and discussing with our various clients, we came across, here we like share with you some of the things that every entrepreneurs or startup should do to run the enterprise successfully. Don’t get trapped in word ‘Startups’ unless you have acquired essential skills to start and run a business and have prepared business plan with your own expertise vetted by those professional who are dealing in the field. Your first priority should be to engage an Qualified Accountant, who is well versed in Accounts & Finance, various taxes and regulatory compliances such as VAT, CST, Service Tax, Income Tax, Labour laws, Company Laws etc.
Complete your project in time otherwise your financials will go haywire, shattering your dreams. To achieve this, use all resources at your command to get work done in time by
Reduce idleness of machines and workers by properly planning.
Scheduling workflow with timely material supplies, maintenance of machinery
Clear cut instruction to workers or staff.
Delight your customers by giving more than their expectations in terms of service, quality, discounts, and courtesy.
Treat every visitor to your establishment (not necessary your customer) with courtesy, respect and service attitude.
Avoid arguments with customers at all costs. They can damage your reputation though you may be absolutely right.
Do not fail on your commitments on delivery, service and payment dues. Build reputation for service to customers even if it is loss. This will benefit you in the long run.
Don’t remain isolated, find latest information about your industry and the products to keep abreast with time.
Expand your network of acquaintances for business growth.
Pay all Government and labor dues within time at any cost. Slightest delay can result in heavy interest, penalties, legal costs and time consuming litigations.
Do not indulge in financial gymnastics by over-trading, over-expansion, fund diversion, Kite flying through cheque discounting with different banks or use of multi credit cards should be avoided.
Till you make super profits, do not use your funds to acquire non-performing assets like posh offices, interiors, lounges, landscaped gardens, personal vehicles. They affect your bottom-line due to interest and maintenance costs without any contribution to the revenue.
Never use short term funds for purchase of fixed assets.
Build a cohesive team of your employees who could be new and fresh. Educate and train them step by step for each task by giving them power and responsibility.
Don’t do the task which you can delegate. Prepare manual of instructions to follow. They should be able to work on their own in your absence. This is the way for growth and balanced life.
Keep in regular touch with your tax and legal advisors for guidance and compliances especially in the matter of law and taxes. Don’t act unless you are very sure. A small lapse can put you in serious trouble.
Periodical set-backs for innumerable reasons are integral part of a business venture. To overcome this, strategies with new level of thinking should be in place after carrying out potential risk assessment exercises. This is success mantra of successful business or profession. As it is said, winners don’t do different things, they do things differently.
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