Guiding Principles for Small Business Owners and Entrepreneurs

Millions of small business owners and entrepreneurs are living the dream of self-employment. The sense of autonomy and self-sufficiency are compelling factors for many who brave the odds and enter the realm of small business ownership.

Whether you are new to the scene or have been at it for a while, being an entrepreneur or owning a small business comes with a unique set of challenges. Over the years, a body of wisdom has evolved, based on the experiences of people who have weathered the storms and reaped the benefits of small business ownership. This collective wisdom is known as best practices.

Why Best Practices Are Important

As RapidBI explains, best practices act as a compass for business owners. These guidelines are based on success-oriented standards by leaders in any given field.

Best practices include topics such as increasing awareness of regulations, organizing records, and considering relationships with other businesses. These standards offer small business sustainability advice and sound marketing and branding strategies. And they pay off in practical ways, such as improved productivity, better communication and broader profit margins.

Chambers Can Bolster Your Efforts

Local chambers of commerce are another valuable guiding resource for small businesses, dating back to 1599 in Marseille, France. These organizations were created as a means of connecting merchants and other business owners for collaboration about local needs and trends. Joining a chamber of commerce connects local business owners and offers a unified, common interest that benefits all members and brings in customers. Your local chamber offers a wealth of opportunities in the form of news, networking and advertising, too.

Your Responsibility to Your Employees

One of the many considerations for small business owners includes the legal responsibilities to employees. Business owners are responsible for conveying the rights of employees in the workplace and keeping accurate records.

Business owners have the obligation to ensure that paychecks are delivered on time and that the business has ample financial security to meet operational expenses, inventory, and payroll (work with The Tax Loft if you need assistance with accounting and payroll). Business owners must also provide a safe, healthy, and ethical working environment, and ensure that whenever changes in policies or procedures are made, those changes are communicated clearly to employees.

Effective Tools for Effective Work

The stress of financial responsibility for small business owners can be reduced with the right tools. Fiscal accountability and planning for future growth are significant factors in best practices for small business owners, but often, there is a missing link between businesses and their banking institutions.

Banks and other fiduciary companies are usually efficient in their delivery, but they may feel one-directional and disconnected from the rest of your business practices. If this seems like a familiar experience for your small business, it’s in your company’s best interest to seek a better banking institution.

If you want to take business finances a step further, forming a limited liability company is an ideal choice. You'll gain benefits such as separating your personal and business liabilities, as well as paying fewer taxes. If you're not sure how to start an LLC, you'll want to fully research this before taking the plunge so that you don't miss any state requirements.

Last but not least, make sure you have the basic equipment necessary to run your business. This includes a great business computer, reliable internet, and a dedicated workspace. If you’ll spend a lot of time away from the office, you may want to look into a good laptop and a charger or charging pad for your smartphone.

In a world where competition can be intense, business owners can benefit from the guidance of best practices, the collaboration of chambers of commerce, and the use of effective tools for managing business expenses. Hard work and entrepreneurialism are the backbones of small business ownership. Thankfully, there are efficient tools and guiding principles in place to support and guide these trailblazers.