When starting a small business, organization is the key to success – these tips for being organized can help.
Anyone who starts his own company is considered to be and entrepreneur, and when the entrepreneur has control over his assets, he will be better able to handle his company.
Unexpected events always occur, and an owner who is already frazzled trying to keep track of his own business will be ill equipped to take care of surprises.
Other reasons for an entrepreneur to consider tips for being organized would be to save time, which in the business world equals money. The key is that a business which is properly organized will work more efficiently than one that is not.
Employees who do not waste their time on unnecessary tasks will be better able to produce for the company. The same is true whether the employees are kitchen cooks on the back line preparing omelets to order or salespeople in the field or showroom.
An employee with more time to devote to working rather than working through the mess caused by disorganization will be more productive and profitable.
There are many areas which require optimal planning, but for small businesses the three most important are: managing time, managing finances and controlling inventory.
Tips for Being Organized – Managing Time
Time organization and becoming more efficient are ongoing tasks. These are continually evaluated and honed in order to cut out waste. Many times, employees will do this themselves unconsciously as they become more accustomed to performing their jobs. They will find ways in which to make their task easier and more efficient.
Often times, efficiency and time management require a conscious effort to improve. This means that both the entrepreneur and his employees need to make an assessment of the manner in which they work, their working environment, and schedules.
The best way to assess these areas of opportunities is to create a written list of all areas where the entrepreneur and his employees could be wasting time. Remedies for these wastes can be brainstormed and a course of action can be taken. Some common opportunities for improving time management include:
- Focus on what has to be done. Perfection is often a common trait of small business owners. Spend time looking at your operations. Are there areas where you spend a lot of time but don’t get a ton of reward? Prioritize what is most important for your business success and spend your time in those areas. “Just Okay” may be good enough in other non-critical areas.
- Are you as organized as you could be? Do you approach each day with a solid schedule in hand? Oftentimes, poor time management is the result of poor organization. Structure your days as much as possible so you can be efficient.
- Do you delegate properly to your employees? In addition to perfection, maintaining control is another common trait for entrepreneurs. To most effectively manage your time, what areas could you delegate to an employee or personal assistant? If you’re the only one running the business, consider hiring a virtual assistant.
How To Get Organized With Finances
Financial organization effectively means accurately (and consistently) managing your bookkeeping. This is not as difficult as it may seem – there are a variety of software programs available that help with this task. And going back to the time management examples, this could be a great area to delegate to a bookkeeping professional or accountant.
The important part of managing finances is to keep up-to-date. Without updating books regularly, there is no way for a small business owner to have an accurate picture of the business’ financial health. Income statements, balance sheets, and statements of cash flow are all vital tools for the entrepreneur. But these tools are only effective when finances are up-to-date.
Controlling Inventory
Every small business has some form of inventory. Whether it is simply for use by employees, in a home office, or for sale to customers, the entrepreneur needs to be aware of the goods entering and leaving his business.
Keeping track of inventory can easily be done with an inventory control computer program. Lacking that, separate Microsoft Excel spreadsheets could be used. One spreadsheet to record the incoming goods for business use and another spreadsheet for items to be sold.
Managing inventory is as much about forecasting what you think you will need as it is about managing what you currently have in stock. Spend ample time ensuring that you have enough stock to satisfy your customers – but not much more! Excess inventory has tax consequences and also ties up your capital that could be used in other areas.
Annually, it is a good idea to take a manual inventory to compare the numbers of goods physically in the business with the records. Any mismatch could be considered a business loss and suspect for being a possible theft (called “shrinkage”).
Retail businesses will also need to perform routine inventory checks for tax purposes. A qualified CPA (Certified Public Accountant) can help with this process.
Over time you will also develop your own tips for being organized. The key is consistency! If you find organization extremely difficult, consider hiring a professional organizer. These are consultants who can help you become and stay more organized.
