10 Common Mistakes of a Small Business Owner

Small business owners could easily fall into the trap of failure without the right knowledge and tools in launching such an enterprise. It’s important to develop an appetite for risk, a hunger for knowledge, and a drive to stay afloat despite strong headwinds. Here are some of the most common mistakes small business owners make, and how you can turn it around.

Not setting smart goals

Running a small business doesn’t mean you have to set aside setting goals. The mere fact that you’re a small business owner means the more you need to construct and achieve certain business goals. If you skip this, you’ll easily be gobbled up by your closest competitors.

There’s a certain acronym called S.M.A.R.T. – a commonly used method of setting goals. For a specific goal to be successful, it must follow these rules:

• • Specific
  • Measurable
  • Acceptable
  • Realistic
  • Time-bound

To put it simply, it means that your business goals must be attainable within your scope given your constraints on time, effort, and money. It is crucial for small business owners to have a clear grasp of where they want to go and what the needs of their customers which they want to serve.

No definite marketing strategy

If you do not have a clear view of your target market, you will not be able to market your product or service successfully. It has to be clear in your mind how a potential customer will hear of your small business and what you are offering.

In marketing a product, you need to be consistent in your presentation of the benefits that it can give to its users. Your target customers would get confused if your message is constantly changing. Be sure that your marketing strategy is consistent with the message for every new customer that will learn of your product or service.

Underpricing your product or service

In the pursuit of getting a bigger chunk of the market, many small business owners tend to underprice their products or services. They hope that consumers will patronize their small businesses because of their cheaper prices. But this will hurt your small business more than you think. Without value, your customers will think that your products or services are not worth the cost.

If you believe on the value and quality of your product, stand by its true price and never back down, even if its price is slightly higher than your biggest competitor. Conduct a thorough market research to arrive at the wisest pricing structure for your product or service before offering it to consumers.

Not following business regulations

Many small businesses have not reached their full potential because they fail to comply with government-mandated business practices. These include operating without proper documents, not paying the right tax, and much more.

If you’re after the growth of your small business, you need some patience and perseverance to make sure your small business follows current regulations. After all, you don’t want to have the government going after your business if you’re operating illegally.

Striving for big rewards early on

Growing a small business takes time. You need to accept the fact that it will take time before you are able to reap the rewards that you want. Be satisfied with the little morsels that trickle in your direction.

If you’re thinking that having a small business is a get-rich-quick scheme, you’re putting yourself in financial trouble. Accept the fact that there’s no “overnight success” in growing a business.

Being successful in your small enterprise means being patient and ready to take risks.

Afraid of using modern technology

We are living in a tech era where everything’s connected. Learn to embrace technology within your business and use it to your advantage.

People are increasingly relying on mobile devices to get information quickly anywhere, which is a prime target to boost awareness about your small business. As a matter of fact, social media is the most engaging and effective venue to promote your products.

Not being financially prudent

Many small businesses also didn’t reach their full potential because their owners were not wise in spending their initial profits. Don’t fall into the trap of spending for luxuries that you think you deserve because your small business is growing fast.

Reign in your desire to splurge until you are safely cruising over the waters. The smart business owners ideally do not spend their first earnings. They spend some of it yes, but on things that will expand their business, rather than for extravagance. In this regard, they also do not underspend in recapitalizing for their business.

Setting unrealistic financial goals

It’s perfectly fine to have big dreams. But since you’re still starting small, your goals should be in tune with your limited resources. You can only do so much with what you have on hand. Don’t try to strive for more than what you can handle, or you will just earn frustration in return.

Not being committed to succeed

Operating a small business is not for the faint-hearted. The only way for you to overcome setbacks with ease is if you’re committed to succeed. You need to give it all for your small business, just like caring for a small plant. Provide all the resources you have and you’ll see it grow in no time.

Being a “jack of all trades”

Small businesses typically have limited human resources – in most cases, it’s just you who’s doing everything.

Trying to do it all alone might be understandable at the early stages of your small business. But as your business grows with time, you need to let others help you to do the work that you just cannot do without compromising your long-term business goals.

Perhaps you really can do everything, but can you give all of them your best? Probably not. You need to get the help of people who have the skills and talents that can do the work for your small business growth.

Final thoughts

Try to avoid making these common mistakes as much as you can. With all these tips in mind, you’ll be better equipped with the knowledge, skills, and strength to take your small business to new heights.

The post 10 Common Mistakes of a Small Business Owner appeared first on Sprout.

source https://sprout.ph/blog/common-mistakes-small-business/

Data Security Tips for Small Businesses

There’s a lot of exciting new challenges that make running a small enterprise interesting. But among these challenges are threats to data security, which affect both governments and large corporations. There is no bigger threat to the growth of your small enterprise than cyberattacks. Cyberattacks represent the largest percentage of data security breaches on the Verizon 2019 Data Breach Investigations Report (DBIR). According to the report, 43% of data security breaches are targeted towards small businesses – this is a very alarming statistic.

Identifying Data Security Risks

Cyberattacks put your small business at considerable risk. When a hacker breaches your data security, they can take plenty of information that can ruin your business. They can do a lot of damage when they gain access to data such as:

• • the company’s banking details;
  • client lists;
  • customers’ credit card information;
  • the business’s pricing structure;
  • the company’s expansion plans;
  • confidential product designs; or
  • internal and/or patented manufacturing processes.

There’s actually more to this list. Your network is connected with all other networks, and any capable hacker can make its way to other businesses through these interconnected networks. When you are at risk of cyberattacks, so does the other companies that work with you. If your company does not have proper protection against data breaches, it puts your company’s name at risk.

Cyberattacks can significantly impact a business’s growth with over half of the victims shutting down half a year later. But that’s not all – a data breach comes with consequences, including financial losses from disruption or business and the high expense of getting rid of the cyberthreats.

Worse, your company’s reputation is at stake. Once your customers and the other businesses you have worked with learn about this, they may never do business with you again. Don’t let cyber threats compromise your business, especially when your small business has already gained traction.

Small businesses often feel helpless in the face of a data breach, but they don’t have to be. You can take specific steps to protect your small business against these cyberattacks. Here are six ways on how to guard your business from threats.

Train Your Employees

Perhaps the most crucial protective measure you can do is to train your employees. One of the main reasons for data loss is due to internal employees leaving the business vulnerable. It happens when they access the internet carelessly, or when they give network access to cybercriminals.

Ignorance of how cyberattacks happen must be avoided. You can do this by ensuring your employees are aware of the threat. Otherwise, your employees’ careless actions – such as losing their work devices such as laptops and smartphones – can result in an attack. Their ignorance may also lead to them giving away login credentials.

Fraudulent emails such as phishing or spam emails also cause employee-initiated cyberattacks. Any of your employees has the ability to let computer viruses and malware be deployed on your network simply by opening a fraudulent email. By training your employees on how to avoid and deal with data security breaches, you can prevent any significant problems caused by it. 

Training your employees about cybersecurity is your main line of defense to threats from within the company. By investing in cybersecurity training, you can educate your employees on knowing what to do against these attacks. By training your workers, you can have reliable protection from data breaches.

Encrypt and Back Up Your Files Regularly

Two things make an effective data security strategy. The first thing you need to do is to prevent physical access to sensitive data. The other thing is to ensure that the data will be useless in the event that the data falls into the wrong hands. It’s a no-brainer to do the first step, but you can only achieve the latter once you encrypt your data. Data encryption still stands as the most effective protective measure against a data breach.

The type of data you encrypt is also important. It should include employee information, customer information, bank details, and all other important and sensitive data. Take advantage of the full-disk encryption software that often comes with modern computer systems.

Always put password or biometric protection on all data stored on your laptop or desktop, tablet, or smartphone. Keep the software updated to ensure it can protect you from all recent malware. Make sure to keep all your devices locked or on sleep when not in use to prevent unauthorized physical access.

It’s hard to keep your small business running in the event that you lose access to your data. That’s why it’s crucial to back up your files, preferably to an offline storage. There are many options to backup your files, including purchasing a third-party application or by getting help from a data expert. If you’re faced with a data threat in the future, you can easily restore all your files and continue your business as if nothing happened. 

Use Antivirus Software

One of the most prevalent cyberattacks is due to a malware infection. It’s important to protect your business data from cyberattacks with the use of antivirus software. Make sure that all the devices you use for work have this software properly installed and activated.

Antivirus programs need to be updated to maximize its efficiency in warding off malware. Your existing software might not be that effective to ransomware given that it changes just as quickly as new tools are made.

A computer firewall can also serve as a first line of defense against viruses and malware. You must install updates as soon as they become available to have the best protection against the latest threats.

Perform Risk Assessment

Besides preventative measures, your computer systems must undergo a regular risk assessment. This way, you can evaluate any potential risks that can become a threat to the security of your computer systems and compromise your information. Performing risk assessment is crucial to your business as it helps to formulate the right plan to deal with the gaps in your security.

In performing risk assessment, do these important steps:

• • assess the process of storing your data, where it goes, who handles it, and who are those with access to it
  • identify threats by finding out who may want access to your business data, as well as the possible ways they may obtain it
  • create a list of possible events with risk levels and their potential impact on the company

After completing the analysis, you gain vital information to use for data security. You can use it for reviewing and revising your strategy in dealing with cyber threats, making sure you can deal with any attack. A risk assessment lets you create an extensive plan of protection that prevents your data from unauthorized access. 

Secure Your Hardware

Make sure to secure your hardware besides getting the latest cybersecurity software. The truth is, devices are usually overlooked but it is a real threat. Securing your hardware is a basic data security technique, but many small businesses forget to employ it. To keep your company data safe, don’t forget to do everything you can to make it hard for criminals to access it.

All the devices you use for work must be protected by a password, which only the device user must know. Also, you shouldn’t write it down and instead memorize it. Try creating a pattern for the password, so it will be easier to remember. Besides this, utilize the ”find my device’ features that phones, tablets, and laptops have today to prevent theft. 

Get Help From Cybersecurity Experts 

Besides placing basic cybersecurity protection, you may need help from a specialist for more complicated matters. As they are experts and know more about the security threats online, you can learn more tips from them to protect your small business. You don’t need to hire them for everything, but it would greatly help if they can maintain it from time to time.

With the significant growth of small businesses in today’s economy, you want to protect your business as much as you can. In that case, don’t forget to put in place the correct protective measures that will prevent and handle cyber threats before they become problematic. Follow these tips, and always stay safe!

The post Data Security Tips for Small Businesses appeared first on Sprout.

source https://sprout.ph/blog/data-security-tips-small-businesses/

9 Tips to Effectively Manage Remote Employees

Offering remote opportunities is a great way for small businesses to gain efficient and productive workers while also achieving growth. However, if you have remote workers in different locations, managing them can be a little challenging. You may feel like you can’t control some situations but as a manager, it is your role to make it work for everyone. To give you some guidance, here are some tips to effectively manage remote employees. 

Set Clear Expectations

Everyone has a different idea of a great work or a good result. You can’t expect your remote workers to guess exactly what you want, so always set clear expectations. Let them know what you expect of them so they can prepare more. If you set clear and specific expectations, they can help you better and be more motivated to improve their work. 

Treat Them as Locals

Your local workers have more access to you than your remote workers. Because you work together in the office, they can talk to you anytime if they have questions, clarifications or updates. They eat with you at lunchtime, go to business events with you and a lot more things your remote workers can’t do. To prevent them from feeling distant and out-of-place, give them as much access to you as possible. Don’t just rely on emails but also give them access to your Skype or other instant messaging apps so they can easily reach out to you. 

Communicate and Engage with Them Regularly

The problem with some managers is that they don’t communicate or engage with their remote workers often. There are times when they take too long to respond which discourages remote employees. Managers often have too much on their plate but this is not an excuse to disregard your remote workers. They are working hard from a distance and they also deserve the attention you give to your local employees. No matter how busy you are, make sure to communicate or engage with your remote workers. Attend to their questions quickly since confusion on their part can affect their productivity.

Avoid Micromanagement

If you want to effectively handle your remote workers, micromanagement should not be a part of your strategy. You may find it difficult to trust your employees because they are working remotely but this is not a reason to micromanage. One of the perks of working from home is independence so don’t refuse to give it to them. Let them have the freedom to work on their own but also give them feedback. It will help them know if they are on the right track and see what they need to improve.

Be Aware of Their Differences

If you have workers from different countries, you have to be extra sensitive about their unique differences. Take time to know about their cultures and also consider their time zones. This will prevent you from communicating at an inappropriate time and giving cues that can be a cause of culture clash. Remember that respect also plays an important role in achieving small business growth. 

Utilize Management Software

The differences in location of your employees may complicate some administration processes. Using management software can help you delegate tasks easily. These management programs also let you keep track of overall organization from different locations and make decision-making simpler. You may also use software that will help you track the productivity of your remote workers.

Offer Perks and Recognition

Like your local employees, your remote workers also deserve the perks your company is offering. If your in-house employees get certain incentives, offer them to your remote workers as well. This will not only encourage them to work harder but they will also feel like they “belong” in your company even if they are just independent contractors. Also, don’t forget to recognize them for their accomplishments. Commendations – big or small – boost their self-confidence and motivate them.

Encourage Remote Socializing

One of the things that remote workers lack is socialization. Because they don’t work with many people in an office, they tend to feel lonely and left out sometimes. Don’t ever give them these negative feelings and let them communicate with other workers. You can set up a messaging channel where all your employees can talk or even share jokes, memes, videos, and advice. This non-work related chit-chat will give them some break from work and allow them to get to know each other better.

Trust your Remote Team

The key to keeping your remote workers is to trust them fully. Put away the mentality that because they are far, they won’t be able to work as hard as your in-house employees and provide the same results. Trust all your employees and embrace remote work, both the good and the bad. Once you trust your remote workers, it will be easier for you to manage them effectively.

Final Thoughts

Your remote workers are as valuable as your in-house employees, despite being physically away from you. Always see the good in them, don’t let them feel left out, trust them and recognize all their achievements. These tips will help you manage your remote workers better and make them contribute to the growth of your small business even faster.

The post 9 Tips to Effectively Manage Remote Employees appeared first on Sprout.

source https://sprout.ph/blog/manage-remote-employees-tips/

5 Reasons Why You Should Invest in Virtual Teams

A virtual team is defined as a group of people within an organization who use technology to communicate and collaborate, working independently with a common goal across time, space, and organizational boundaries. It is increasingly becoming a trend for many small businesses and startups to set up virtual teams because of its perceived benefits and advantages.

Virtual teams have a lot of advantages, but it is also challenging to successfully manage one. Aside from the usual challenges that come with managing teams and people who have different personalities, characters, and work habits, virtual teams also have the additional burden of having to deal with managing people from long distances, lack of personal social interactions, not having the ease that comes with face-to-face interactions, and other challenges that come with the management of remote individuals, let alone teams. Add to these the fact that virtual team members come from different time zones.

Nevertheless, it is still worth investing in virtual teams. It has proven to be one of the most resilient and responsive ways that businesses can deliver their products and services efficiently. Below are some of the best reasons for investing in a virtual team. Consider the advantages that such a team brings to your small business to see if a virtual team is right for you.

Lower costs

Having a virtual team can give your small business lower overhead costs because you are able to hire people from other countries who have a lower cost of living, and consequently, lower salary standards. This is especially beneficial for startup companies and small businesses who cannot afford to hire many employees. Such businesses can obtain quality work while not having to shell out a lot of capital.

The addition of a virtual team also means that there is no need to pay for costs such as office rental, office equipment, and other expenses that come with having a brick-and-mortar office. You can focus your capital on the things that really matter, and slash your overhead budget significantly.

Garnering a lot of savings in working remotely is not solely an advantage for the employer. For virtual employees, it is also a big advantage because they do not need to leave the house, get dressed, endure traffic, or otherwise get stressed going to and from the office. All these activities do mean considerable expenses for employees; working virtually eliminates all these costs and stresses and can mean a significant improvement in the employees’ output and quality of work.

Unlimited pool of talent from all over the globe

This is among the biggest benefit of having a virtual team in your organization. Thanks to today’s technology, you can obtain the best and the brightest into your organization without having to consider their location. You do not have to be limited from the local workforce pool, nor do you have to import the talent you want, with all its attendant complexities, requirements, and obstacles. As long as the individuals you want have access to the internet and have the capabilities and qualifications you need and want, they can join you as you attain your small business growth.

This is a real plus when you are considering building a virtual team, an advantage that weighs heavily in its favor despite the many challenges that come with managing it. Being able to collaborate and work with amazing people regardless of where they live can go a long way in making your small business a success.

Flexibility

Running a business can get really dynamic, especially in a small business aiming for growth where types of work may differ from time to time. A virtual team brings flexibility that other types of teams may not have. This means that a virtual team lets you focus on what you really need to accomplish most at a given time.

The capability of current technology makes it possible to manage and organize a dispersed group of people, and flexibility has also become possible not only on the employers’ side but also on the employees’ end. It has become increasingly common even for real-office personnel to work remotely, even if only partially, at least a day per week.

For employees, working virtually brings a lot of advantages. Aside from saving on expenses, they can also save a lot of time because they can avoid rush-hour traffic jams. This time savings translates into better productivity, less stress, and more quality time with their family.

Ease of hiring

Hiring members of a virtual team is much simpler and less complicated. You do not need to spend more time doing physical or in-person interviews, nor do you need to show your new employees around the office and let them settle in. In addition, you do not need to deal with such time-consuming trivialities such as taxes and other governmental requirements just to be able to hire an employee.

Easier government compliance

Having a virtual team also means that you do not need to stress yourself out or take too much time handling the government processes and requirements entailed in having employees on a payroll. You can do away with the loss and waste of time and money in handling the various aspects such as salary and tax computations and employee benefits and requirements.

In addition, errors in computing the payroll mean more time and money wasted.  The use of technology further simplifies the process, unlike in the old days when all of these has to be computed manually and takes a long time to do. Doing things manually also entails a higher chance of human error.

With a good virtual team handling these obligations, you can take your hands off the processes of required government deductions, which include HDMF, BIR, SSS, and PHIC. This in turn lets you focus more on growing your small business.

The post 5 Reasons Why You Should Invest in Virtual Teams appeared first on Sprout.

source https://sprout.ph/blog/reasons-invest-virtual-teams/

Top 4 Benefits of Using Social Media to Promote Your Small Business

It’s the year 2019, and there isn’t a single small business or big enterprise that has zero social media presence. Most brands, especially small businesses looking to grow, have the social media triumvirate of Facebook, Instagram, and Twitter accounts with complementary content on each platform that their digital content managers have slaved over for months if only to get that perfect engagement rating that makes them go viral.

Why do brands do this?

The foremost thing is that social media is a great way (these days, a requirement) to foster brand credibility and trust. Even for brands with brick and mortar stores where customers can literally see the products with their own two eyes, the lack of a social channel or two could be likened to throwing customer loyalty and brand recall out the providential window. Successful social media acts as a brand’s extension, as another customer sharing what’s so great about this one product or service they love. It’s the way brands establish social proof and show their audience that they’re completely legitimate – just ask all the other happy customers! New product announcements, special events, and memes aside, a brand’s social media presence can even form part of the customer service experience, so a carefully-thought-out approach to social media promotions are crucial especially for start-up campaigns and small business growth.

Promoting your business over social media can help you reap these benefits.

Creative freedom and creative expression

Although having brand guidelines are an absolute must, having rules means sometimes learning how to break them to your favor. The beauty of social media promotions, particularly for bolstering SME growth, is that you have so much room to creatively present your brand that the possibilities for you are endless. Viral content, memes, infographics, fact sheets, flat-lays — that and all other social media jargon should be in your vocabulary when promoting on social media. Keep yourself up to speed on the latest trends, and always think of creative ways to present them to your audience to keep your content fresh and relevant.

Flexible presentations

Gone are the days when advertisements would be looked down upon and skipped. In the age of social media, creative advertisements are the name of the game. The more vaguely thought-provoking and emotionally charged your ad is, the better it connects to your audience. This means that businesses small and large have flexibility when it comes to the form they present their ads in. There are hundreds of different ad executions to prop up your brand without even making them look like ads – yes, they can be made to look like your average Instagram post. (Just be honest about it!)

Worldwide visibility

This ought to be a no-brainer. More than half of the world’s population are on social media, and somewhere at the other end of the world, someone is scrolling through their Facebook timeline or Twitter feed liking a post you just made and wondering if you ship worldwide. Social media opens up several doors to major distribution channels for any product or service when done right, and it can drastically improve small business growth from the localities to the global market. Make sure to plan your content ahead with a global audience in mind. After all, in this day and age, inclusivity on all fronts should pretty much be a given.

Social media is fool-proof

No brand who wants to stay relevant to its audience is without social media anymore. It is one of the major communication channels to get through to your market, and it’s still where people turn to for daily content. Although no one would go so far as to say that social media is 100% foolproof with no room for error (email marketing and brand websites still play bigger roles in customer retention), one would be hard-pressed to find a brand that doesn’t employ some sort of social media marketing strategy.

For micro, small, and medium businesses that want to build credibility fast in order to reach a bigger market, relevant social media has to be in place. With the right content strategy, sincere values, and transparent promises of data privacy (which is a whole other topic altogether), brands could potentially generate huge sales through digital marketing efforts alone. And who wouldn’t want that?

The post Top 4 Benefits of Using Social Media to Promote Your Small Business appeared first on Sprout.

source https://sprout.ph/blog/benefits-social-media-small-business/

How to Set Goals for Your Small Business

The world of commerce is a dog-eat-dog world. Without the definitive picture of where, when, what, and how you want your business to be after several years, you’re another organization looking to bury itself in competition and financial resource wastage. Business goals set an enterprise apart from its competitors, more so, make them stand out in the industry. If you want to make your small business grow and make an impact in the industry, it would be best to go back to basics by evaluating your goals even further. This article would be of great help if you run a small business and you want to clearly define where you want your business to be.

Well-defined, effective and efficient goals

It’s always a good time for any business to assess their situation. As long as it is geared towards problem resolution, financial growth, human resource development, and operational sustainability, you can get your manual of operations or vision statement placard for a goal-setting session.

It is essential to note that not all goals are worthy of pursuing. Some business owners or leaders fall into the traps of making goals that are either unrealistic, unattainable, inefficient and making human resources unable to thrive. Also, an articulate goal is not enough to move the organization towards success. What’s the use of having a well-written goal such as, “XYZ Corporation aims to contribute 5% of yearly earnings for the outreach efforts to a chosen society,” when it cannot earn enough revenue to cover workforce wages and operational expenses?

Effective, efficient and well-defined goals must possess these attributes:

• • Fosters SME growth and development to your brand and business.
  • State means of achieving your objectives.
  • Improves human resources’ collaboration, teamwork, and career growth.
  • Provides a clear picture of where, what, when and how the business will proceed.

As a reference, we could look at these goal samples for XYZ Corporation.

XYZ Corporation intends to launch the first-ever eco-friendly packaging that supports advocates for a greener Earth. It will also establish a partnership with farmers and fisherfolk for direct purchase of goods for efficient financial investment and help suppliers by providing them cash rebates for bulk transactions.

In this goal, XYZ Corporation would like to set themselves apart by committing to a cause of a greener, healthier Earth and establish direct contact with suppliers for cost-effective operations. Moreover, it states the way the objectives mentioned in the earlier part by launching eco-friendly packaging.

To motivate the human resources of XYZ Corporation in participating the move towards a greener society, a semi-annual count of collected recyclable materials will be done. This activity will determine which employee collected most and will receive prizes in kind to be awarded in the semi-annual team-building events. Aside from mandatory team-building exercises, a working culture centered on collaboration and teamwork will be cultivated.

This tackles the participation and involvement of employees to the organization’s cause. Most of the time, organizations that don’t encourage employees to participate in the goal makes them feel neglected, left behind or unappreciated. Their skills and talents will not be put to good use because they don’t feel connected to their work.

Things to Remember When Setting Goals for a Small Business

For a practical goal setting, it is essential what business aspects you need to work on business growth, improvements, adjustments and eradications. If you are a newly-established business, always cover all bases and make sure to comply with Philippine laws and regulations. For companies already operating, it wouldn’t hurt to assess existing policies that align with the organization’s goals. Here are some tools you can apply to your organization to ensure the growth of your small business:

 

SWOT Analysis

The SWOT Analysis is the process of identifying the business’s strengths (competitive edge), weaknesses (operational or financial lapses), opportunities (possible market entries) and threats (foreseen danger).

Benchmarking

With the help of your planning and research department, they can gather relevant information such as average sales or financial reports and compare it with the organization’s financial performance.

Market Research

This process involves identifying market trends such as demographic needs, customer ages, psychological influences, and income and expenditure trends.

Legal Compliance

Although the process can be tedious and a headache at times, before delving into the operations of your business. An organization needs to comply with legal procedures for effective small business growth. What are these legal documents you need to secure? Please refer to the list below.

• • SEC Registration – for organizations that are partnerships or corporations.
  • DTI Registration – this needs to be secured as you register your business trade name.
  • Mayor’s business permit – you need to obtain a license from the municipality or town that you’ll be operating and payment for local businesses taxes.
  • BIR registration – your business needs to obtain its Tax Identification Number, BIR-compliant invoices and receipts, registration of account books, and payment of national revenue taxes.
  • SSS, PhilHealth, and Pag-Ibig fund registration – as prescribed by Labor laws, you need to register yourself as an employer, and for payment of remittances of employer’s share of contributions.

As of the moment, municipalities host the Philippine Business Registry System, a one-stop-shop for start-up entrepreneurs to aid their business registration process. Make sure to visit your local municipality or town office for a thorough guide that suits your business type.

Once all of the mentioned strategies or tools have been observed, you can start with the actual goal-setting. Just make sure that you are armed with the researched data, relevant information and reports to objectively support your session.

The Process of Goal-Setting

 

Tying your goals to your mission statement

With the help of your current mission statement, you can create a flowchart that will breakdown your goals. For example, a mission statement that reads, “XYZ Corporation is an organization that provides eco-friendly packaging solutions for various business owners in the Philippines. Our mission is to establish a sustainable, cost-effective and eco-friendly solution that mitigates the use of plastic for packaging.”

In the mission statement, one goal can be derived from the word “sustainable.” Being sustainable means being self-reliant and having a forward-looking mindset. Cost-effectiveness can be achieved through efficient use of materials, one goal that you can apply with the cooperation of your employees.

If you think that your mission statement lacks suggestive goals, you may choose to re-evaluate the statement itself so that it will capture the essence of the business.

The ACES Method

It helps to foresee positive outcomes with the help of your goals. After all, who wouldn’t want to achieve growth and profitability for such a small business? However, it will also be beneficial to identify weaknesses and problem areas and set goals to resolve or eradicate those. The ACES method stands for the following:

• • Achieve: What do you want to attain for your business in the future?
  • Conserve: What do you want to retain or hold on in terms of business practices?
  • Eliminate: What practices, resources or values you want to get rid of?
  • Steer Clear: What do you want to avoid for short-term and long-term operations?

Upon identification, you can craft those goals and let it guide you and your business practices for the success of your organization.

Making a SMART goal

SMART goal setting refers to Specific, Measurable, Attainable, Relevant, and Timely goal creation. This is the most common method of establishing goals for businesses everywhere. You can break it down into several notions and merge them into a holistic goal.

All-base goals

This method is one of the most unconventional methods for identifying goals. In this process, you create goals that answer to four crucial business aspects, namely: day to day work goals, problem-solving goals, development goals, innovation goals, and profitability goals.

• • Day to day goals – refer to everyday workspace effectiveness. This can involve goal setting that indicates office management, efficient use of office resources, and daily activities inside the office. Although this may appear irrelevant, it will later improve the overall effectiveness of the office’s functions.
  • Problem-solving goals – in this aspect, you identify the most common problems the business encounters. You can tackle low productivity, low sales, and revenue or service quality issues.
  • Development goals – you identify what your current resources are lacking and find ways to develop or improve it. For example, you lack computer units for sales monitoring, set a goal for this year to purchase at least one additional unit to promote productivity.
  • Innovation goals – for this kind of purpose, you find new ways of selling or improving your existing service or products. You can look for innovative ways of integrating your service to a community cause and engage the people for brand awareness.
  • Profitability goals – for businesses, this will be the first concern for goal-making. After all, if a company does not earn enough profit, it won’t cover payment for human resources, acquisition of materials and other overhead expenses.

Without goals, you are operating on a fleeting sense and without purpose. Always keep in mind that the growth of your small business relies on direction, follow-up, and commitment to set goals and objectives.

The post How to Set Goals for Your Small Business appeared first on Sprout.

source https://sprout.ph/blog/set-goals-small-business/