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7 Things Small Business Owners Should Know

This is a Guest Post by Praveen who blogs at Techperk.

There are a number of things that one has to learn before venturing into a business of your own in a small-scale or in a large-scale. There are differences when the business is going to be on a small-scale, as the regulations governing your small-scale business will be much different and nuances to be adopted for making your small-scale business flourish will be much different. If you are someone who is running a small business then here are few things which you must be aware of.

1. Know Your Taxation:

When you are investing on a large-scale business the input and the output will be more dividends, unlike in small-scale business dealing where the input and output will be a direct one and you will have very little room for showing a lesser gross difference of the total benefit of your business. If you are not careful in filing your taxes and tax returns smartly and appropriately, then you will be finding that most of your money will be spent towards the tax benefits. This is very important to file your tax returns when there is a call for, as may not be automated for your small-scale business.

2. Keeping the Books and Journals:

Keeping the books will be of help both when you are filing your tax returns and will tell you when you should be thinking of expanding your phone. You will also be finding out where you are lagging and the sensitive regions where you can fail in your business, which means you should always have a contingency plan ready in hand until you improve in that sector of your business.

3. Knowing Your Location:

Every business can flourish only in the specified regions where there is a market. You should be in the locality where you grow in your business, or grow a business that will thrive in the region where you are. For example, if you want to be a waste cotton merchant, then you should be on the regions where there are more spinning mills and not ginning mills.

4. Know Your Customers:

A perfect analogy for this will include the tea and snack shops. You should know what kind of snacks that you would like to sell depending on your target customers, as the cost, choice and taste of the snacks will differ between people. You will find that some will like to have tea with biscuits, while some will prefer tea following the conventional oily foods and snacks, and some like a whoremonger, will be there to taste the delicacy that is specific to your area.

5. Business Plan:

Many small-scale business owners do not plan the season well ahead or only do mind mapping without putting them in ink on the paper. This is very important that you set goals and pass them across to your employers, this will also encourage them to work harder.

6. Ask and Verify:

Many times, this is what happens. Doing business builds and moulds your personality to make you confident and many a times this can turn out to the reason for your failure, as the small-scale business owners will develop a kind of superiority complex paving the way to develop an ego of “know-all” with your employers. Since employers have more opportunity to deal things directly with your valuable clients, this is good to ask and verify from your workers and employers about the current business trend. They will be telling you many a times the right step to move forward in your business.

7. Keep Backing Your Business With Enough Funds:

This is very important that you always find ways to keep your business secured by gaining insurance for your fixed assets and the floating funds from not falling to a fixed minimum amount.

Comments are always appreciated!!

Please do add your points if I have missed any!!

Praveen Sivaraman is the Editor-in-Chief and CEO of Techperk. An Engineering Graduate with a passion for technology, a knack for writing and most importantly addicted to Blogging. Follow him at Twitter or Facebook. Check out some of the best ipad gamescollections.

Category: blogging

36 Comments on "7 Things Small Business Owners Should Know"

  1. entrepreneurs startup says:

    nice post.very informative post for business startups

    • Thanks entrepreneurs startup

      • There ought to be other things that small business owners ought to know such as know your competition, your industry etc.

  2. Dana says:

    Agree with all the points but really interested to the taxation thing. I experienced that many small business owner take lightly the tax and then, after their business is big, their become have a big tax related issue.

  3. Andreas says:

    The most important part for me is: trial and error. Only few business people got successful directly without any trial and error, it is normal when starting and running a business.

    • trial error is a good method but it is hard when your investment is big, what do you say

  4. tushar says:

    also, they should be aware of the tax policies and income policies of your country…the ignorance could sure land you in big trouble

  5. samuel says:

    Awesome post bro,
    A good location is needed for your business in order for it to grow. Nothing beats knowing your ideal prospects. Thanks so much for sharing. Have fun 🙂

  6. I can’t add anymore but I’d like to appreciate you for writing this article. Your point number one is exactly what has been running in my mind lately. I wouldn’t have known exactly what to do and I definitely needed assistance with this matter. Now you gave me a bright idea.

  7. Excellent tips for start a business. That is informative and helpful knowledge for us.These tips are very posture and safe way.Thanks for a share with us this useful tips.

  8. Brandon Yanofsky says:

    All great stuff. You touch on this but I’d also add to always ask your customers what they want. Talking with you customers is something few businesses do but it’s so important

    • Yes every business is for customers.. Thank you Brandon

  9. William Tha Great says:

    Hey Praveen,

    Thanks for the fantastic article!

    The 7 tips you have here are great and I agree with them all though I didn’t think about them all. That is why I’m very pleased I took the time to read your arti le you know exactly what your talking about when it comes to business! Great advice here my dude. I think people should take the time to ask their community, but many people have to big of a ego like you said.

    Thanks again!

    God bless,
    William Veasley

  10. John Papers says:

    Thanks for this post. I couldn’t make it and this post has been useful.

  11. Stuart says:

    I will add one more point: Learn How To Delegate. It’s pointless doing all the work and driving yourself into the ground, as then you’ll be in the same position as when you worked for someone else!

    Even with only one employee, learn how to split the work effectively so that both of you can manage, and the necessary work gets done.

    Great read Praveen, thumbs up!

    • ye Stuart, managing things is really needed ..

      Thanks for your Point 🙂

  12. Alex says:

    Hey Praveen, I know I read a post about small business when someone told us to be serious when “Keeping the Books and Journals”. He mentioned, that you should be adding anything you that you spend money at as a business expense (anything like pencils, paper, phone bills) to help you recover some of the money and I think he was right! It may not seem, but adding the cost of paper over a month it adds up.

    But business, is ran for money and with money and like you said, if you want to keep it running you have to keep investing.

  13. Matthew says:

    Hi Praveen,

    your article reminds me of how important it is to me to know the taxation of my business. In fact, the tax benefits offered to business owners was the very reason I decided to incorporate my online business back in 2008.In the US (and I believe in other countries as well), they use to say that the single most expensive element of a business is taxes.

    • Matthew,

      True, even in the UK. I am from India where these things are made strict these days

  14. Definitely agree that keeping the ego in check (like you mentioned in the 6th tip) is an important thing for any professional to think about. You’re never too successful to learn more, and you’re never too old to grow!

  15. Do I have to pay tax for earning online in INDIA?

  16. Website Design says:

    Knowing your tax laws for your nation and state is extremely important. Now actually following through with those and learning how to keep the books fresh is extremely tedious, but hey, running a business has its downside.

  17. thx for your tips,i got much information from it!

  18. Make Money Online says:

    Great post praveen. Small business owners also need to be quite active to be successful.

  19. Kyocera toners expert says:

    Number 4: knowing your customer is the most important thing to consider if you have a small business.

  20. I totally agree that keeping that our ego should always be checked in a professional environment. Interesting…

  21. Vera Wang bedding sets says:

    Praveen great post. yes small business owner should know those

  22. Nice post Praveen. The only issue I personally have is the taxation. Tax is one aspect I’m still confuse about but I’m trying more to learn about it. I also agree with your 5th point – Business Plan. It is very wise for one to craft out a good plan before embarking on the entrepreneurial journey.

    Thanks for sharing.


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