An entrepreneur needs to focus on business management to succeed.
This skill is essential and is usually the most neglected by freelancers, solopreneurs, and small business owners.
Business management is a very a complex topic that would require a series of books entirely focused on it to start scratching just the surface of it.
But this isn’t a book about management, so we’ll focus on what I consider the most critical topics: Profitability, Automation, and Human Resources.
Profitability is defined as the degree to which a business or activity yields profit or financial gain.
I guess you start to see the importance of it.
And that’s why many of the strategies or techniques I write about are meant to improve profitability through proper business management.
Either by reducing the amount of time or money, you need to market your project or produce value.
In other words, most of that was intended to reduce your costs, and with reduced costs and same pricing, guess what happens?
Your profits increase.
Your project will live or die based on its capability to generate profit. So you better take good care of it.
The more tasks you can automate, the better your profitability will be. And believe me, there’s a massive amount of stuff you can automate. Lead nurturing, billing, payroll, production processes, customer care and a long list of other activities.
To achieve this you need to do everything you do in your company with a question in your head,“ can this be automated?”. Some great tools to consider are CRMs, ERPs, Email Marketing tools and templating everything you can.
If you’re a freelancer or solopreneur right now, you might be considering hiring someone to help you out.
Let me advise you not to hire a full-time employee until you have an exact process and system for the function of that person.
You should write down the exact job description and an operation manual for that role and make sure that process is profitable and useful before delegating it to someone else.
It becomes tempting to hire when you’re feeling a bit overwhelmed by all the activities in your business, especially when you have the money to do so. However, are you 100% sure that you aren’t wasting too much time on tasks that could be automated, improved or merely unprofitable?
Make sure you perfect your project’s shape as much as possible before hiring someone?
Remember the bit about considering your business development as a craft?
Well, it applies here.
You need to give it shape and substance by working hard on it before asking someone else to commit to it.
“Management is doing things right; leadership is doing the right things.” ― Peter Drucker, writer
1. Are you automating your more repetitive and tedious tasks? If not, define precisely which functions you’ll automate and google for tools to help you out. If the tool doesn’t exist, you might want to build it yourself or maybe even hire a developer to make it for you. Some of the tools you might want to take a look at are a CRM, ERP and Email Automation Tool. I handle most of 2nomads operations with an ERP.
2. Is your project allowing you to live the type of life you want for yourself? If not, you might want to take a closer look at your operation costs. You might be spending more money than you really should. A great book for working on your profitability is Profit First.
3. As you work on each area of your project, it’s a great idea to write down the exact tasks you perform. This will allow you to create an accurate Operation Manual for the area. Avoid hiring someone if you can’t communicate in details what they need to do.
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5. Do you have questions about business management or suggestions to improve the guide? Please leave a comment below.