Marcus RichardsAs an entrepreneur or startup founder in today’s fast-changing world, it’s imperative that you manage your business’ administration efficiently from the start. Doing so will help with your business’s smooth running, growth, and success. Additionally, you will maintain compliance with applicable regulations and be flexible enough to execute changes as the needs arise.
Read on to learn about nine best practices to help you actively manage business administration in your startup.
1. Develop A Business Plan: Your Vision And Mission Statements
Start managing your business administration by developing a well-crafted business plan. Your business plan should include your startup’s vision and mission in as much detail as possible. Once you know your goals, you can identify your target market and competition through market research and competitive analysis.
Once you’ve done your research, you can set goals and make financial projections, creating a roadmap for your startup’s growth.
2. Design And Implement Efficient Systems And Processes
Develop and implement efficient systems and processes for the various business functions in your startup, e.g., accounting, human resources, and operations. By employing efficient systems and methods, you can streamline your business operations and focus more on growing your business.
For example, with efficient processes and systems in place, you can save valuable resources such as time and money, which could be spent on growing your business. Here are some ways to develop and implement efficient systems and processes:
- Collaborate with your team members
- Use project management software to manage tasks
- Track your progress to tweak where necessary
3. Streamline Business Processes With Technology
You can streamline your business processes further by investing in technology and software programs. The technology you choose should improve efficiency and reduce costs. For example, you can use cloud-based enterprise resource planning (ERP) software that manages functions, such as accounting, sales, and marketing.
Before choosing software or technology, do some research and comparisons to determine what would best suit your business situation. Then, once you’ve decided on the best option to support your business needs and growth, ensure the relevant staff are trained to use it effectively.
4. Hire The Right People For Your Team
When you hire the right people for your team, your startup is more likely to succeed. Hire employees who are positive and passionate about their work, dedicated, and have the skills and expertise to work efficiently.
5. Foster A Positive Work Environment
With your A-team, create a positive work culture that fosters communication, collaboration, and innovation. Doing so will help you to attract and retain superior talent and build a strong team that will drive your business forward. In contrast, a hostile work environment is likely to result in a high staff turnover and a lack of creativity, passion, and integrity.
To avoid stunting your business’s growth, ensure there are systems in place for quality communication between team members and external bodies. Quality communication is essential for the success of any business, including your startup. Therefore, it is best to prioritise contact with the following people:
- Team members: Ensure everyone is on the same page and knows their role in the business.
- Customers: Be consistently responsive and reliable with your customers.
- Suppliers: Maintain a good relationship with your suppliers, communicating with them regularly and paying them timeously.
- Stakeholders: Regularly update the stakeholders in your business.
6. Organise And Monitor Your Finances Regularly
Make sure you have a solid financial plan for your business, learn how to calculate profit margin correctly, and always keep track of your finances. Doing so will help you to swiftly identify potential economic issues and make informed financial decisions. Failure to do so can result in unwanted or unnecessary expenses, debt, or penalties.
You can monitor your business expenses by doing the following:
- Have a separate bank account for your business.
- Track your business expenses and income as intricately as possible.
- Use accounting software to manage your finances.
- Keep your personal and business finances separate to minimise confusion and avoid potential legal issues.
7. Maintain Accurate Records
By maintaining accurate records, you can make informed decisions regarding your business and stay compliant with regulations and tax laws. So, from startup, keep and maintain accurate records of all aspects of your business. For instance, have separate, updated filing systems for the following aspects of your startup:
- Business transactions (income and expenses)
- Contracts with personnel, customers, and service providers
- Statements and invoices
- Company policies
- Standard Operating Procedures
- Legal documents
In addition to maintaining accurate records, you must protect your information from cyber theft. A breach in cybersecurity could result in the theft of money and personal or client information, which could have a disastrous effect on your business. Therefore, it’s recommended you employ updated strategies or outsource a company to strengthen your cybersecurity and reduce the chances of an attack.
8. Stay Compliant To Avoid Legal Issues
It’s imperative to ensure your business complies with all relevant regulations and emerging regulatory changes, e.g., tax and employment laws. Failure to comply with the applicable laws could result in legal issues that could hurt your business’s image and finances.
If you cannot ensure you remain compliant with these laws, consider hiring a business administration professional. Such a person should create a regulatory taxonomy and manage your business’s finances, legal compliance, and administrative tasks. Depending on the amount of administration required, you can employ someone on a full- or part-time basis.
9. Plan For Growth
Plan for future growth in your business by setting goals, tracking its progress, and adapting to market changes.
Additionally, remain as flexible as possible should you need to pivot your business strategy if necessary to accommodate unforeseen changes such as surviving a pandemic or recession, or embracing new technology such as Artificial Intelligence (AI) that’s changing the workplace.
In Summary
If you create a solid foundation for managing the business administration in your startup you’ll have a greater chance of overall success. Finances are the biggest reasons most startups fail, and by following these six best practices, you can set yourself up for a better chance of success.
