How to Manage a Micro-Business

This isn't IBM or General Motors. Your boardroom meetings may look more like a walk in the woods with your dog than a gathering of "suits" around a mahogany table. R & D is, "I have an idea that might work," rather than a lab full of engineers in white coats. And your Human Resource Department may consist of a sheet of paper with the names of people you can call in a pinch.

You're a freestyle entrepreneur. Today, if you are one of the millions of men and women who are self-employed or have a payroll of fewer than four, you're a "microbusiness."

That means you are the business. If you succeed, the bills get paid; if you fail, you're out of business. You know that the lessons that drive the big multi-national corporations don't mean a heck of a lot to you. Still, you also know you cannot afford to fly by the seat of your pants.

Difficulty: Moderately Challenging

Instructions

1. Remember that attitude is everything. Studies have shown that the single driving factor behind success is attitude. If people have a positive attitude toward their business, they tend to do well.

2. Think like a business. Even if you're a one-person operation working out of the back bedroom, resist the urge to hang the "gone fishing" sign on the door in the middle of the day. Keep regular hours, have a budget, keep good records.

3. Have a dream. Successful small business owners are almost invariably goal-driven. They understand the need to have clearly defined, written goals.

4. Unleash your passion. It is the secret weapon missing in many bigger companies. When you love what you do, it isn't work at all.

5. Manage your money. The biggest cause of business failure is "cash flow woe." Have a line of credit at your bank and enough cash to achieve your goals. Then watch your expenses carefully.

6. Stay focused. Small business succeeds when the company is narrowly focused on doing one or two things exceptionally well.

7. Get expert advice. It's all around you ... and much of it is free. Start with your banker, who has a vested interest in your success. Other sources of information and help are The Small Business Administration, SCORE and The National Association for the Self-Employed (see Resources below).

Tips & Warnings

• There is nothing more exciting or frightening than being in business for yourself. While the risks can be high, the potential for financial and personal rewards is also great. By applying the above principles, you can help increase your success and achieve your business goals.

Resources

• Small Business Administration
• The FreestyleEntrepreneur
• SCORE
• National Association for the Self-Employed

[Danarax]

on 2/20/2009 Thank your for this concise outline.

[nethopperz]

on 3/5/2008 Very good article! It's that type of mentality that has helped the company I work for to transform from a very, very, small business into a formidable competitor in our industry.