Who is a business owner and what makes them different from a puppet? According to research, many young people launch their startups but two or three years down the line; they end up being puppets. One of the main reasons why most people start their own businesses is to become their own boss and follow their passion.
Who is a business owner?
A business owner is a person or entity who owns a business company in an attempt to make profits from the successful operations of the company. A business owner has power over the entire company. They know when to do it and how to do it. On the other hand, a business puppet is a person who started a business but lost control in running it, or was hired to be the image of the company. This can be seen in countries such as China, where some Chinese feel that having a “white face” will make the company appear to have a global edge.
So, how can you prevent yourself from becoming a puppet in the first sense of the term? The best way to ensure that you don’t become a puppet is preventing your business from depending on a few customers or suppliers. Here are some business tips to consider:
· Be aware of the risks and identify other suppliers for major products or raw materials.
· If your business depends on a few customers or suppliers, have formal agreements in place.
· Have a variety of products that make up your sales. Get them from different suppliers.
· If your business is making some good money, put some aside for a rainy day.
· Keep expanding your customer base. This prevents your biggest customers from making up a bigger percentage of your overall profits and sales.
· When it comes to long commitments, ensure that they match the time frame of your agreements.
What does a business owner do?
Becoming a business owner comes with a new set of responsibilities. For instance, small business owners don’t have the luxury of hiring people required to keep the business going. Therefore, small business owner responsibilities vary from planning to human resources to marketing. Here are some business owner responsibilities for everyone.
After your startup becomes quite stable, you have to decide whether or not it can support new employees. If it can, you should conduct an interview where you ask the candidates key questions. Avoid illegal and ill-advised questions. You should provide the benefits forms and information to your employees.
No matter how small your company is, you need to prepare its business plan. Take advantage of the marketing research to identify trends and potential markets for your products.
Unless your business has the ability to support customer service representatives, all the responsibilities of servicing customers fall to the business owner (in this case, you). Customer service support involves installation, training, technical support, and troubleshooting. It depends on the products and services sold by the company.
A small business owner should be ready to plan and implement marketing strategies. Marketing methods will depend on the type of business you own. For instance, some companies rely more on print marketing while others advertise in magazines.
Can anyone be a small business owner?
No, not everyone can become a small business owner. You should always be honest with yourself. Here are some signs that tell you shouldn’t be a small business owner:
· You find it hard to make decisions – Small business owners should be able to make the call when the need arises. They never procrastinate.
· You don’t like taking responsibility for your actions.
· You are only interested in the money. Small business owners are in it for the passion. They have the ambition of building an empire from their small startup.
· You have zero records of completing tasks. You might have lots of ideas, but actions are the ones that lead to results.
· You don’t want to let go of the “normal”. The marketing strategies and technology are constantly changing, hence the way of doing business is also changing.
Is a small business owner an entrepreneur?
No, a small business owner isn’t an entrepreneur. However, there’s a very fine line between these two entities. An entrepreneur is a person who starts and runs businesses with limited planning and resources, taking into account the risks and rewards of the business venture. The main business idea is usually an innovation.
On the other hand, small business owners tend to deal with products that are already existing in the market. They aim for a limited growth and continued profitability. In most cases, small businesses owners end up becoming entrepreneurs.
To be a successful business owner, you need to take all the business owner responsibilities. When stuck, go through business tips and seek help from people who have been there.