How to Run Your Business Like a Business

A sense of relaxed informality and friendly optimism is the hallmark of many a small business. When created correctly, such an atmosphere can inspire and motivate employees be productive, loyal, and innovative. When this informality reflects a broader sense of carelessness and lack of seriousness, however, the results can be disastrous. This is why small business owners (especially up-and-coming entrepreneurs) are oftentimes cautioned to “run their business like a business.” What exactly does this look like? Here are a few important points.

Set up the correct legal structure. Failing to establish your company formally under the correct legal structure (for example, as a partnership, a nonprofit, an LLC, ect.) can have a negative impact on your company’s ability to manage finances and take advantage of tax breaks. (And, perhaps even more importantly, it can make you, the owner, personally responsible for any debts your company incurs!)

Treat employees like employees. Even (especially) if you hire people you already know, it is important to treat them as employees when at the workplace. This means holding them fully accountable for their mistakes–but it also means taking care not to abuse their goodwill by demanding too much of them.

Ensure that everyone knows their rights and responsibilities. Continuing with this same theme: it is sometimes better to err on the side of formality and caution than on the side of laxness. Employee handbooks, established hiring procedures, careful timekeeping, and timely paycheck issuing are all important components of maintaining a motivated and professional staff, even if they do not always seem important right off the bat.

Let Precise Payroll Help you Manage Your Business Like a Professional. We handle the nitty-gritty aspects of HR management so that you can stay focused on leading your team and turning the grand vision into a great reality.