Many people start small businesses “accidentally,” by doing side gigs and become popular. When this happens, progress happens so quickly and can take on a life of its own without planning and organization. This can lead to disastrous consequences for some, which can lead to business failure. However, through thought and planning of how to run a growing business, it can evolve into a prosperous business. Setting the business up for success includes developing processes and procedures that can be a lifesaver. 1 An important step that does not get enough attention is analyzing whether or not a potential business idea solves a problem and planning for new business success. Although you may think your business idea is great, it could become a financial black hole to keep it going if you don’t understand your target market–who actually needs your product or service. 2 Another is understanding business finances and developing a business plan. This can be overwhelming, especially if you don’t have a business or financial background. The good news is this hurdle can be overcome by taking business training, creating business planning and projection documents, and finding a mentor to guide you through the startup process. 3 When planning and making financial projections, it’s important to establish good financial best practices to really understand your costs. One key activity is to open a business bank account. This is to help to keep your business and personal finances separate to and track true costs of your income and expenses. 4 If you sell food and accept both cash and digital payments, it’s important to deposit all cash receipts into your business bank account immediately following your popup, farmers market, food truck or festival events. This helps ensure you are accurately capturing your sales revenue. Many entrepreneurs handling cash make the mistake of dipping into the cash box to pay for personal items, which leads to errors in their financial records. 5 Always use your business debit or credit card for all purchases for the business. The goal is to have both revenue and expenses recorded in your bank account, which helps to manage your finances. 6 Use an online financial accounting software to track all transactions and easily generate reports about the business. Many software options offer mobile apps for business customers to access their financial information anywhere. These programs can directly connect with business bank accounts and can transfer the bank records to the software to show up-to-date financial information about the business. 7 Save your business transaction receipts, especially when cash is used to make business purchases. These transactions will be needed to add to the accounting software, either through the app, or through manual entry. 8 Another tip for managing business finances is to create a main business bank account for revenue and set up accounts to serve for specific purposes. You can make it part of your regular process to transfer predetermined percentages to these accounts. This helps to avoid overspending what’s in the main account and encounter shortfalls when it’s time to pay expenses. It also allows you to designate profit for yourself. It may take some time to start “paying yourself profit,” by diligently tracking your business finances, you can make this happen. Some recommended categories are: Profit Operations Taxes By being organized and creating best practices and procedures, small business entrepreneurs can keep better track of their finances and be prepared to pay important expenses. Not only is this a critical part of running a small business, but also minimizes the stress from scrambling at the last minute to understand the finances, pay important bills, and run a successful business that can grow and flourish.

What are Customer Relationships? Customer relationships describe the interactions a business has with its customers or clients and are crucial whether you’re a microenterprise, corporate entity, or government organization. These interactions involve how you acquire customers (inbound), retain them, encourage them to purchase more products or services (upsell), and keep them informed about additional value your organization offers (outbound). According to the Business Model Generation, customer relationships are the connections a business establishes with different customer segments. These relationships can be personal or automated, short-term or long-lasting, and can even evolve into a micro community. Why are Customer Relationships Important? Customer relationships are crucial because they influence the customer journey and can significantly impact the cycle of repeat business. When customers feel valued and heard, their satisfaction increases, enhancing the likelihood of continued business and positive referrals to new customers. How to Determine Your Customer Relationship Strategy By understanding customer segments, your desire to serve is significant to shaping the customer relationship experience. For instance, if your goal is to be highly automated with minimal human interaction, you will attract customers who prefer a hassle-free transaction for their products. On the other hand, if your goal is to build strong relationships with each customer, consider in-person interactions and regular touchpoints through newsletters, community events, or other personal communication methods. Regardless of the type of relationships you choose to establish with your customers, it’s essential to understand the business process, identify your target audience, and decide on the nature of your interactions. The customer experience plays a critical role in shaping how customers engage with your business and will pave the way for your business's future success.