Do you fully understand the foundation of your business? When I meet with clients, we review all five of these basic rules to make sure they are maintaining a healthy business with a sturdy foundation. If any one of these basic rules aren’t followed, your business has the potential to crumble before your eyes.
Do you know that feeling of moving, non-stop, for so long that when you finally rest you get a panicky, anxiety-riddled feeling because you realized that you should have been doing things totally differently?
Maybe you started out with a small side-hustle that organically grew into a successful business. However, you realize that you have no idea how much you are actually spending on business expenses.
Perhaps you were so excited to get your business going that you registered as a sole proprietor and never looked back. Now you make a significant income, but your personal assets are exposed because you haven’t changed your business structure to protect yourself.
Have you ever woken up and found yourself dreading going to the studio because you just want a break? Your creative flow has slowed to a grind and you don’t even remember why you wanted to do this full-time.
Below I’ve listed five business rules that I want all small business owners to nail down. I challenge you to really reflect on each rule. If you read through them and find your business or yourself lacking, make a plan to address the short-coming.
Rules for Maintaining a Healthy Business
- Understand what you want out of it. What feelings do you want your business to bring you? What outcomes do you expect to achieve? Know what the cornerstones of your business are and understand how they affect your business decisions.
- Protect yourself! Your business needs to be legal. No excuses. Set it up with the state, understand your tax responsibilities, use contracts when necessary. Know the implications of your business structure, whether you are an LLC, S-Corp, or sole proprietor.
- Have a financial plan. Follow an business budget. Understand all money coming into and out of your business and make sure it is in-line with your budget. If it isn’t, address it.
- Know your metrics. Make sure you track the important statistics behind your business. Understand how each metric can provide insight into the health of your business. Just as important: make sure you aren’t placing much importance on vanity metrics.
- Don’t stop learning, improving, and evolving. If you don’t have an innate curiosity to learn or you find yourself too busy to spend time on this, consciously plan it into your rhythm. Hold yourself accountable. Curiosity often leads to new-found creative inspiration.
I discuss each of these five topics with each and every customer I work with. We plan them into the business strategy and make sure business owners have an eye and and understanding on each rule to help them reach and maintain a healthy business.
Did you find this helpful? Check out these blog posts to keep learning: