Administration
Any system that you adopt must be scalable - make sure that once you have a successful system then it remains that way as the business expands. Review your systems to be sure that they can grow the way you want them to and not get left with having to change to an unproven system with all of the upheaval it will cause at a time you can least afford it

Back Up Your Data
There is overwhelming evidence that many businesses fail after a disaster. If you fail to plan you will plan to fail. Backing up vital data is not expensive, DVD and CD-R disks can certainly be used for small businesses and external hard drives for those with significant important data. The real problem with most organisations is in not making the task regular, at least a daily, basis and carrying the stuff off site. There are on-line services that can be used to eliminate the dangers of forgetfulness since they will provide automatic scheduling as well as secure space for your data. Another advantage of using an on-line service is that, should a major disaster occur you can continue to work using the back up as a server for your staff. Ideally in any enterprise there should beat least two separate servers mirroring each other as the work is done and located in different buildings. For the small operation using Microsoft Windows there is a facility there that will allow for scheduled back-ups without interfering with the normal PC operation but the same requirements for locating the backed up files still stand

Business Intelligence
Requires substantial time and money to do properly but the generation of a more competitive and knowledgeable position in the marketplace is well worth the effort. Most of the major software Companies offer systems that provide the where with all to do the job

Business Plan
Start off with a simple statement of your aims and work from there to build a working plan. Review it regularly, preferably with someone who has no financial interest in your business, and make adjustments to account for the actual performance compared to what you had hoped for

Cash Flow03-Jan-2011s and if it is not well controlled the business can easily haemorrhage to death

Debt
It has been said that debt is necessary to fund growth - if you waited until you could save enough to afford to buy your house you would never get it ! However, borrowing money can be expensive - if you use a 'financial advisor' be sure that you want to give away 20% of the funds raised. Make sure you know the total cost of borrowing before you commit to taking that loan. Banks will make a loan 'set up' charge that can be quite high

Delegation
Unless you are the expert in all things and have enough time then it is necessary to delegate the operation of certain aspects of the business. If you are going to give the responsibility for some function in your Company - give the authority too !!

Growth03-Jan-2011any plan for growth. You will need new business to grow and you will need more staff to handle that new business. It generally means that more staff and facilities will require larger premises. Try to anticipate the way in which the business will grow and take account of future demands for premises and a point at which growth of your present business will not be sustainable. There is nothing wrong in having a substantial area 'roped off' during the growing period neither is it wrong to plan for a move to larger premises several years before you need to

Human Resources
When you first start up, the administration necessary to deal with HR issues is easily managed - watch the demands on the business grow disproportionately as you expand. It very quickly becomes a major item of expense. Give consideration to employing 'self employed' people wherever you can

Making a Presentation for Funding
When presenting your projections to potential investors concentrate more on the way market changes will affect your existing product and the action to be taken than on what you expect that product will do in the future. Avoid projections that merely rely on 'percentage share of the market' to project growth. Make your story interesting and show your own enthusiasm and belief but bear in mind the needs of the potential investor. Study these fully and show how, in your presentation, your project will satisfy those needs. Temper your optimism with realism and don't oversell yourself or the project

Partnerships
When establishing a partnership always be aware of the long term aspects of the agreement. Many a truly firm relationship has turned sour when one of the partners decides that it is time to move on or when some disagreement occurs

Software Management
Using licensed software provides a high degree of confidence in its reliability. Almost certainly any defects in the software will be put right by upgrades and improvements will be made in the same way - something that will be missing from unlicensed material. However it is essential that all software be continuously surveyed for its cost effectiveness. By carrying out an audit from time to time the legality of software being used and its usefulness to the business can be ascertained. Employees should be given clear guidance on the question of copyright and use of unlicensed software and there should be an approval scheme in place whereby the case for additional software is submitted before it is loaded to any computer

Unlicensed Software
Use of unlicensed software includes using counterfeit software, installing a licensed copy on more than one computer, copying the software and giving more than the licensed number of users access to the software that is held centrally. Downloading software, subject to copyright, from the internet is also a breach of licensing law. The Business Software Alliance (BSA) and the Federation Against Software Theft (FAST) are two organisations of different groups of software producers that are tasked to keep an eye out for piracy. BSA offer rewards, some as high as £10,000, for information leading to a satisfactory recovery of fees for its members. In five years it has negotiated the settlement of fees of over £1.8 million and it claims that every day it receives reports of businesses that use software illegally generally from both employees and ex-employees. Company directors are personally responsible for compliance and yet, according to the BSA, most directors are not aware of the source of the software being used in their Company

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Last Update 08-Jan-2012

Date first published 28-Nov-2005