Last Updated on August 26, 2024 by Treana Wunsch
Running a small business is a wild ride, isn’t it?
I’ll never forget the time I realized that my cash flow was tighter than a drum. I was blindsided because, honestly, I’d been so focused on growth that I let some key operational stuff slip through the cracks.
Turns out, 82% of small businesses fail due to cash flow problems. That’s a tough stat, but it’s true. Managing a business isn’t just about having a great idea or a killer product. It’s about keeping the wheels turning smoothly day in and day out.
This guide will walk you through some tried-and-true strategies for managing small business operations. We’ll dig into managing your finances, fine-tuning your processes, building a strong team, keeping projects on track, and, of course, keeping your clients happy. Let’s get into it!
Financial Management
Let’s start with the money talk because, honestly, if your finances aren’t in order, nothing else matters. I’ve had clients come to me with fantastic products but zero clue how to manage their cash flow.
One client, let’s call him Dave, was running a trendy little café. Business was booming, but Dave was always stressed. Turns out, he was buying inventory whenever he felt like it, not tracking what was selling or what was just sitting on the shelves. His cash was tied up in supplies he didn’t need, and when the slow season hit, he was in real trouble. He didn’t have the funds to cover rent or payroll. It was a nightmare.
The first thing I always recommend is to get a clear picture of your cash flow. Start tracking every dollar that comes in and goes out. I’m talking about every little thing. Use simple tools like Google Sheets or something more robust like QuickBooks Online if you’re into that. Quickbooks Online saves small business owners an average of 25 hours per month.
But don’t just set it and forget it. Review your cash flow regularly. I check mine weekly, and I advise clients to do the same. This way, you can spot trends and, more importantly, catch issues before they spiral out of control.
Budgeting is your next best friend. I used to hate the word “budget” because it felt restrictive, but man, was I wrong. A budget isn’t about saying no; it’s about saying yes to the right things.
Create a budget that aligns with your business goals. For example, if you’re planning to expand, make sure your budget reflects the extra costs of marketing, staffing, or whatever else you’ll need.
Don’t just guess—use your past financial data to make educated estimates. And hey, if you’re not sure how to create a budget, Quickbooks Online has budgeting built right in.
Now, let’s talk about research and analysis. It sounds boring, but trust me, it’s worth your time. Keep an eye on market trends, especially if your industry is volatile.
I had another client who ran a small retail store. He was blindsided by a shift in consumer behaviour because he wasn’t paying attention to market research. The items that were flying off the shelves one year were collecting dust the next.
We worked together to analyze sales data, identify new trends, and adjust his inventory accordingly. It wasn’t easy, but it kept his business afloat.
Lastly, don’t be afraid to seek help. Managing finances can be overwhelming, especially if it’s not your strong suit. Hiring a bookkeeper or accountant might seem like an added expense, but it’s an investment in your business’s future. They can provide valuable insights and keep you on track.
As an Online Business Manager, I specialize in financial management for small businesses.
Remember, your finances are the foundation of your business. If they’re shaky, everything else will be too. So, take the time to get this part right, and you’ll be in a much stronger position to tackle the other aspects of your business.
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Systems and Process Optimization
Now, let’s dive into systems and processes. This might sound like the boring part of running a business, but trust me, it’s where the magic happens. When your processes are smooth, everything else falls into place.
I learned this the hard way in my early days of running a business. I was doing everything manually, from invoicing clients to managing inventory. It worked when I had just a few clients, but as the business grew, I was drowning in paperwork and losing track of important details. It was a mess.
The first thing I did, and what I recommend to all my clients, was to conduct a business process audit. This means taking a good, hard look at how things are running right now.
Are there any bottlenecks?
Are certain tasks taking way longer than they should?
For example, one client of mine was still using a paper-based system to track orders in her small bakery. Every time she needed to check an order, she had to sift through stacks of paper. It was time-consuming and prone to errors.
We switched her to Quickbooks Online which tracked orders, inventory, and sales all in one place. It was a game-changer for her business.
Once you’ve identified areas for improvement, it’s time to implement business automation. Automation sounds fancy, but it’s really just about using technology to handle repetitive tasks.
For instance, instead of manually sending invoices, use software like Quickbooks Online or Xero to automate the process. One of my clients was spending hours each week just sending out invoices.
We set up an automated system, and suddenly, he had all this extra time to focus on growing his business. Automation doesn’t replace the human touch—it just frees up your time so you can focus on the things that matter most.
Next up is creating Standard Operating Procedures, or SOPs. I know it sounds a bit corporate, but SOPs are invaluable, especially when you start bringing more people onto your team.
SOPs are basically step-by-step guides on how to perform specific tasks in your business. When I first hired my assistant, I realized how much time I was spending explaining the same things over and over.
So, I wrote down the processes—how to handle customer inquiries, how to manage my calendar, how to run reports—and suddenly, training new team members became a breeze. SOPs ensure consistency and help prevent mistakes, which is especially important as your business grows.
Finally, let’s talk tech. Technology is your friend, but only if you use it right. I had a client who was so overwhelmed by the idea of setting up new systems that she kept putting it off. When we finally got her set up with the right tools—everything from project management software to cloud storage—her business transformed.
She could access files from anywhere, collaborate with her team remotely, and keep everything organized. But here’s the kicker: You’ve got to continuously optimize these systems.
Don’t set them up and walk away. Check-in regularly to see what’s working and what’s not. Maybe you’re paying for software you don’t use, or perhaps there’s a new tool that could save you even more time.
In short, streamlining your systems and processes is all about working smarter, not harder. When your operations are running smoothly, you’ll have more time to focus on what really matters—growing your business and serving your clients.
Team Management
Ah, team management. If I had a dollar for every time a client came to me frustrated about their team, I’d be sitting on a beach somewhere right now. Managing people is tough, no doubt about it.
I’ve had my fair share of struggles too. When I first started hiring, I thought it was all about finding people with the right skills. But boy, was I wrong.
I quickly learned that cultural fit is just as important, if not more so. I once hired a guy who had all the technical skills I needed, but he just didn’t mesh with the rest of the team. The tension was palpable, and it started affecting everyone’s productivity.
So, let’s talk about recruitment. It’s not just about filling a role; it’s about finding the right person for your team. I’ve found that using behavioural interview techniques helps a lot.
Instead of just asking about experience, I ask situational questions—“Tell me about a time when you had to deal with a difficult coworker,” or “How do you handle tight deadlines?”
These questions reveal a lot about how someone might fit into your company culture. And don’t be afraid to trust your gut. If something feels off during the interview, it probably is.
Once you’ve got the right people on board, the next challenge is keeping them engaged and motivated. One thing I’ve learned is that regular check-ins are key. But here’s the thing: Don’t make them all about work.
I like to ask my team how they’re doing personally, what challenges they’re facing, and what goals they have. This isn’t just about being a nice boss—it’s about understanding what motivates them.
I had a team member who was starting to check out, and during one of our check-ins, she mentioned that she was feeling stuck. We talked about her career goals, and I ended up giving her a project that aligned with those goals. Her enthusiasm came back overnight.
Another crucial part of team management is performance management. It’s not just about calling people out when they mess up—it’s about setting clear expectations and giving feedback regularly.
I’ve had clients make the mistake of waiting until annual reviews to give feedback, and by then, the issues had already festered. Now, they make it a point to give feedback at the moment, whether it’s positive or constructive. It’s not always easy, but it keeps everyone on the same page.
Let’s not forget about fostering a positive work environment. This might sound fluffy, but it’s incredibly important. A toxic work environment can kill productivity faster than anything else.
I’ve worked with clients who were great at their jobs but struggled with high turnover because the work environment was stressful or negative. Encourage open communication and celebrate wins, no matter how small.
I’ve started a tradition in my team where we kick off Monday meetings with “wins of the week.” It sets a positive tone and reminds everyone that we’re all in this together.
Team management isn’t just about managing people—it’s about creating a culture where everyone can thrive. When your team is happy and engaged, they’ll go above and beyond for your business. And when they’re not, well, you’ll feel it. So take the time to invest in your people, and it’ll pay off in spades.
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Planning and Coordination
Planning and coordination—two things that can make or break your business. I’ve seen it all, from beautifully planned projects that ran like clockwork to chaotic messes that left everyone pulling their hair out. The difference? Solid planning and tight coordination.
I remember one project where everything went sideways because we didn’t have a clear plan. We were working on a marketing campaign for a client, and everyone had different ideas about what the priorities were.
Deadlines were missed, communication broke down, and the client wasn’t happy. It was a mess, but it was also a valuable lesson. Since then, I’ve made it a point to kick off every project with a clear plan. I’m talking timelines, responsibilities, goals—everything.
When it comes to project management, I’ve found that using the right tools can make all the difference. For example, I’m a big fan of Google Workspace for keeping everything organized.
One of my clients was struggling with keeping her team on track. They were using email to manage projects, and things were slipping through the cracks.
We showed her how to make use of the functions within Google Workspace, and it was like night and day. Suddenly, everyone knew what they were responsible for, and deadlines were met without the usual fire drills. It was a huge win.
But planning is only half the battle—the other half is coordination. You can have the best plan in the world, but if your team isn’t on the same page, it won’t matter.
I’ve learned this the hard way. There was this one time we were coordinating a product launch, and while the marketing team was ready to go, the product team wasn’t quite there yet.
The result? A disjointed launch that confused customers and led to missed opportunities. That’s why I now make sure to have regular check-ins with all teams involved in a project. It’s not about micromanaging; it’s about making sure everyone has what they need to do their job well.
One practical tip that’s worked wonders for me is color-coded scheduling. I know it sounds simple, but it’s a lifesaver. I use different colours to indicate different types of tasks or priorities. My tool of choice is Google Calendar which is included in Google Workspace.
For example, client-related tasks might be blue, while internal tasks are green. It’s a quick way to see at a glance where your time is going and whether you’re on track.
And let’s talk about communication channels. In the age of remote work, this is more important than ever. I once had a client who was using five different tools for communication—email, Slack, Zoom, text, you name it. It was chaos.
We streamlined her communication channels, narrowing it down to just Google Chat for day-to-day conversations and Google Meet meetings. All part of Google Workspace…why get multiple tools when one does it all? It cut down on confusion and made it easier for her team to stay coordinated.
In short, planning and coordination are about more than just getting things done—they’re about getting things done efficiently and effectively.
When you’ve got a solid plan and a well-coordinated team, you can tackle anything that comes your way. But when you don’t, well, let’s just say you’ll spend more time putting out fires than moving your business forward.
My favourite digital tools for small business
Client Relationship Management
Finally, let’s talk about client relationship management. If there’s one thing I’ve learned over the years, it’s that your clients are the lifeblood of your business. Keeping them happy isn’t just about delivering great work—it’s about building strong, lasting relationships.
I’ve had clients come to me after being burned by other service providers. One client, Sarah, was particularly jaded. She’d been promised the moon by her previous consultant, but when it came time to deliver, they were nowhere to be found.
Sarah was understandably skeptical when she first hired me. I knew I had to go the extra mile to build trust. We started with a clear onboarding process, which made sure she knew exactly what to expect at every stage. It wasn’t long before she was sending referrals my way.
Client onboarding is something I take very seriously. It sets the tone for the entire relationship. I’ve seen so many businesses fumble this part. They’re either too casual and leave the client wondering what’s next, or they’re too rigid and overwhelm the client with paperwork.
I try to strike a balance—clear, but not overwhelming. I always take my clients through the process step-by-step, answering questions as we go. It’s all about making them feel confident that they made the right choice in hiring you.
Communication is another biggie. I’ve found that the key to keeping clients happy is consistent, transparent communication. I had one client who was always anxious about the progress of her project.
Even though we were on track, she felt in the dark because I wasn’t updating her as often as she wanted. Now, I make it a point to over-communicate, especially in the early stages of a project.
I send regular updates, even if there’s not much to report, just to let them know we’re on it. It’s a small thing, but it makes a huge difference in how clients feel about working with you.
Documentation is another area where I see a lot of businesses drop the ball. I used to be guilty of this too. I’d have conversations with clients and then forget to jot down key details.
Then, when the client would follow up, I’d be scrambling to remember what we talked about. Not professional, and definitely not efficient. Now, I make sure to document everything—emails, meeting notes, decisions, you name it. It keeps things clear and prevents misunderstandings.
I do this all with Google Workspace.
One thing I’ve learned is the importance of setting boundaries with clients. It’s tempting to want to be available 24/7, especially when you’re trying to build a relationship. But trust me, that’s a fast track to burnout.
I once had a client who would text me at all hours, expecting immediate responses. At first, I obliged, but it quickly became unsustainable. Now, I set clear boundaries from the get-go. I let clients know when I’m available and when I’m not. They respect it, and it actually strengthens the relationship because it’s built on mutual respect.
Lastly, don’t forget to show appreciation. A simple thank you goes a long way. I make it a point to send thank-you notes to my clients after we complete a project. It’s a small gesture, but it leaves a lasting impression.
And don’t be afraid to ask for feedback. I’ve found that clients appreciate it when you ask for their input, and it gives you valuable insights into how you can improve.
In the end, managing client relationships is all about trust and communication. If you can nail those two things, you’ll not only keep your clients happy, but you’ll also build a loyal customer base that will stick with you for the long haul.
Managing Small Business Operations is Key
Managing small business operations is no small feat, but it’s absolutely doable when you focus on the right areas. We’ve covered a lot today—everything from managing your finances and optimizing your processes to building a strong team, planning effectively, and keeping your clients happy.
These aren’t just abstract concepts; they’re practical strategies that I’ve learned through experience, both in my own business and working with clients. So take these tips, apply them to your own business, and don’t be afraid to tweak them to fit your unique situation.
Remember, the key to success is consistency. Small, consistent improvements can lead to big results over time. And hey, if you’ve got any tips or experiences of your own, I’d love to hear them!
Drop a comment below and let’s keep the conversation going. Here’s to making 2025 your best year yet!
