How to Run a Good Business

Running a business well means more than just having a good product or service. You'll need a flexible business plan, good marketing, effective financial controls and other basic business practices that any company needs to maximize the chances it will succeed. Study and put in place the basics of good business to ensure your dream becomes a reality.

Step 1

Create a business plan including income and expense projections, a budget, a profile of your potential customers, an analysis of your competition, marketing, advertising and public relations strategies and steps for making sure you follow legal aspects of doing business. Monitor and update the business plan regularly.

Step 2

Monitor your income and expenses so that if your revenues decrease, you'll know if you need to make spending cuts. Keep track of the timing of your income and expenses, often referred to as cash flow. Renegotiate payment times with creditors, for example, if you sign a big sales order but the money won't come in until after you have to pay a large insurance premium, rent, payment on a loan, payroll or taxes.

Step 3

Target your marketing rather than using a shotgun approach. Put together a detailed demographic profile of your customers and purchase advertising in appropriate media. For example, if your customers are primarily married women with children, place newspaper ads run in the home and garden, cooking or family sections of the paper.

Step 4

Create a consistent message so potential customers know exactly what you're selling and why your product or service is different. Create a brand, a consistent message you put in your ads, on your packaging and on your website. For example, Honda promotes its cars as reliable, Volvo touts the safety of its cars, while Lexus brands itself as a luxury car. If you have a landscaping service, you might brand yourself as a residential landscaper or one that specializes in commercial properties.

Step 5

Meet with government officials and legal or tax professionals to know the laws governing your business, any licenses or permits necessary to operate your business and what type of insurance you need to operate legally and safely. If you work out of your home, obtain a permit if required and deduct home office expenses properly. If you incorporate, renew your registration each year and file your taxes properly. If you have employees, follow labor laws.