One of the biggest challenges that first-time business owners face, is learning the basics of running a business on the fly and this, also, entails improving the financial stability of the business.

This is part and parcel of what increases the relevance and stability of the business.

Being a business owner does not imply that, you suddenly develop the technical know-how, or, expertise, in running smooth finance, or, accounting of your business.

The survival of business needs financial stability and if this is not met, the purpose of the business is not complete.

How will a business grow and survive, if, financially, it is doing badly, with no sign of improvement?

The steady inflow of income, sometimes, does not mean that the business is stable, as the better part of such income, may have been eroded by huge expenses.

Stability engenders longevity and the ability to stand steadfastly, against challenges, like unplanned resignation of a key employee, decrease in the workforce, decrease in sales, loss of clients, or, lack of capital, etc.

Below are 5 strategic principles, which will boost financial stability.

Periodic review of production and overhead cost: Check the profit margin per unit at your current sales level and then, calculate the profit margins, based on your lower sales level, so that, you can understand, at what sales volume, you are not profitable.

Carry out a periodic review on the production expenses and determine the costs per unit of product.

Payment Tracking: Sometimes, it can be incredibly hard, keeping track of all the outflow and inflow of cash, but through digital payment, you can perfectly keep track and manage how money entered and how it is spent.

Better still, hire a very good Accountant to do the job for you.

Finding cheaper alternatives for publicity: Nowadays, you do not have to spend much, when it comes to publicizing your business.

The internet and technology, has made this, so easy and cheaper.

With social media, you can reach out to billions of people around the world, within minutes.

Review your charges and increase it: Sometimes, you have to look at your charges and check, if it is still relevant or outdated.

If it is outdated, review it upward accordingly, but you should be careful, when doing this, as it may not bode well with some clients and customers and they may seek to check out other alternatives, thus, making you end up losing them to your competitors.

Competent and dedicated workers: When you have dedicated workers that know what they are doing, this means that they are justifying the salaries they are being paid and you will be spending little or nothing on having to make good, what they would have done wrong if they were not competent and dedicated.

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One of the challenges that a good business has to face, is making the right structure for it. Below are some tips for you to follow, when you decide to make a business structure that suits your venture:

Be specific about what makes you different: Think about, what makes your business different from those of your competitors. For instance, if you want to start a footwear business, then, you need to differentiate yourself from others, who are in the same footwear business

Make it brief: Your business plan should be short and concise. You might want to include, all the results of your market research, which is not necessary. All you need do is to go straight to the point and outline exactly what your business will look like.

You can always update your business structure: Your business plan is prone to change. It is not a fixed one, which means you can update it as things change.

Results of having an effective Business structure

Well Organized: Having a business structure helps you to stay organized. You have a clear picture of your business posterity and follow closely, until you achieve your desired result.

You are motivated: Your business plan helps you to stay motivated and inspired and not to give up. You keep moving until you see everything written on that piece is achieved.

You are guided: You are running your business with a vision. This helps you not to compete with anybody because you have your set goals and vision and this keeps you going at your own pace until it births the right result.

You get the right team: knowing what you want and having a clear picture of how to achieve it, can help you get the right team to work with. You get people who are goal oriented, self-driven and self-motivated, to achieve a result like you

Every Startup needs an informed business plan, in order to be guided in executing their plan.

Office culture describes the ‘personality’ of a company. The vision, mission, goals, ethics and values, define the variety of elements that make up the culture of a company.

Some companies are formal, when it comes to operations and management style, while some can be very casual with their company’s rules and regulations.

Company culture matters because, if your employees do not fit into your company’s culture, there is tendency that, they might not give their optimal best in efficiency.

Let us examine ways by which office culture improvement can boost efficiency;

Transparency

Lessons from mistakes and failure should be shared with the employees of the company. Hiding them will do a great disservice to the growth of your organization.

An average human gets disappointed when he/she feels something of importance is withheld from him/her within a system when if he/she is part of the system.

Let your culture encourage transparency. In this way, identifying and fixing problems would be easier for the members of staff.

Scheduling

When you burn out your employees due to non-flexibility of work dynamics, they tire out easily and this can create an unhealthy environment in your workplace.

Business owners should cultivate the habit of scheduling workflow for ease of operation within the organization. Software that can help you assign tasks and create a work schedule for better office performance are readily available.

Collaboration

You might not have thought in this line of direction before, but there is the need to do some getting together at some point in time. This is usually initiated from the top level and this makes the employee feel a sense of association.

Hosting a social meetup is a way that can foster collaboration and helps in breaking any initial barrier that might have existed among staff members.

Mission statement

From the offset, you need to make your team understand the mission of your organization, so they can identify and align with your objectives. By stating them clearly, both of you would be on the same page.

The mission statement is a very vital company culture that your employees must get to understand.

Bright Atmosphere

Nowadays you would see work spaces with so much brightness, colours and some sparks that makes the work environment appear work space-friendly.

Making small, but significant changes to your company, brightens up the chances of your employee efficiency.