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Business administration is an essential function at the core of a company. It’s a complex process that includes the organization or resources – equipment, people, money, and premises – and the management of all business operations and decisions towards common goals – which have been defined in your strategy. For a lot of new entrepreneurs, business admin can either refer to the bureaucratic side of sides or the operational performance of all tasks. But what most newcomers to the business world fail to understand is that the administration of a business is the combination of bureaucracy and operations. To put it simply, your admin is what keeps your business running, both in the eyes of the law but also for your team. For a newly formed company, getting things right can take a lot of time; however, if you have sufficient budget and resources, you can afford the learning curve delay. For a solo entrepreneur, however, time is at the essence, and failing to understand your administrative responsibilities could affect your growth dramatically.
You don’t know how to choose your tools
Every business needs equipment, whether your team works with heavy machinery or with digital tools. More often than not, industry sectors that rely on engineering machines and large equipment have detailed guidelines to support new entrepreneurs in their investment choices. However, office-based companies don’t receive such support and often end up in a tricky position to figure out which of the many software tools available are the best suited to their activities and processes. Working with the right tools can save you tremendous amounts of time and money. However, it can be difficult to spot inadequate tools without running comparative performance tests – which is something you can do if you ask to run a handful of tools on a simultaneous trial.
You don’t know how to manage team duties
Finding the best applicant for the team is a long and involving process. Team recruitment and management are vital factors in your growth. However, if you don’t have any automated HR and payroll solution in place, you’re likely to struggle to keep track of your team duties. Small businesses that grow to hire their first employees tend to misinterpret the importance of HR software tools, as it’s a solution that isn’t suitable for a one-person business. Unfortunately, you can’t rely on manual processes at the end of the month to manage wages, sick days, and holidays. Indeed, it is a time-consuming operation where the smallest mistake can have dramatic consequences.
You don’t know who supports your business
Investors only support big companies, right? Wrong! Small businesses, solo entrepreneurs, and startups can develop a practical approach to fundraising. It is a mistake to assume that you need to get big to get the capital you need. Indeed, there are countless online fundraising platforms from Kickstarter to AngelList can that introduce startups to a peer-to-peer community. After all, nobody said that finding an investor is all about relying on one funder! Crowdfunding strategies let your target a broad audience. Additionally pitching events also welcome new businesses. Investors are keen to discover the successful company of tomorrow; in short, don’t be afraid to pitch your idea even if you’re small!
You don’t know how to pick an office
Too many new entrepreneurs hit a brick wall when they try to find the best office space for their company. Busy city locations are often too expensive for SMEs and startups. On the other hand, while semi-rural premises are a bargain, they can be difficult to access for employees who don’t have a personal vehicle. But, it’s time to embrace the 21-st century business environment by asking yourself one crucial question: Do you need an office space? Indeed virtual offices are not only a popular and cost-effective solution, but they also allow businesses to choose the best talent for their team, regardless of location.
You don’t know about business structure
Most entrepreneurs spend a lot of time defining their business idea and market strategy. But when it comes to figuring out what is the best legal structure for their business, new entrepreneurs are not aware of the different options. However, your legal structure can affect your management style, your tax duties, your financial choices, and your market positioning. If you are unsure which of the 3 legal business forms – sole proprietorship, general partnership, and corporation – is the most suitable for your project, you should seek professional advice. Making the wrong decision can be devastating.
There are a lot of administrative questions aspiring business owners need to answer. Unfortunately, more often than not, enthusiastic entrepreneurs can get confused about their admin processes and waste a lot of time and money with ill-fitting solutions. There is no way around it: If you’re going to launch a business, you need to surround yourself with professional advisors.