10 Things Every Business Owner Needs to Have

Starting and owning a business is a lifelong dream for many. As with most aspirations, transforming a dream into reality requires a combination of perseverance and practical know-how. It can be difficult to know where to start, and even more difficult to know how to continue through the natural lows that come with being a business owner. Even during the good times, how can you know if you are running your business as effectively as possible so you can enjoy the benefits that may have drawn you to entrepreneurship in the first place?

While there is no one-size-fits-all recipe for success (business needs differ depending on size, services, and budget), there are common elements that all businesses need. Whether you are just starting out or looking to shape up existing systems, the following list provides 10 things that every business owner needs to have:

1. Positive Attitude

While it may seem self-evident, having a positive attitude is the most important item on the business owner’s checklist. Without it, it will be difficult to have the vision and tenacity necessary for weathering the natural ups and downs, challenges, and setbacks that occur in business ownership.

Not everyone is a born optimist. Thankfully, positive, resilient mindsets can be learned. Among other suggestions, Healthline identifies practicing gratitude, opening yourself to humor, and surrounding yourself with positive people for developing a positive attitude. Self-education through books, podcasts, and seminars on positivity may also benefit you greatly. Find a strategy that works for you.

2. Business Plan

It is necessary to have a business plan. Depending on your personality, writing a business plan may seem like a perplexing or redundant task. However, having a solid business plan is essential for the focus and clarity it provides.

A business plan identifies the product or service offered, business goals, and the pathways for achieving them. A vague plan or a “pretty picture” description is not sufficient; plans should be as detailed as possible by identifying specific strategies and how success will be measured. It is even good to mention the specific tools and teams (including legal systems) that you will need as well as the communication methods that you will use. A clear business plan gives you objective insight into what you should or should not be doing in your day-to-day. Plans that get down to actual numbers (determined by metrics and analytics) will do this better than ones that are more generalized.

If writing such a plan sounds daunting, consulting services exist to help you with this step in your business journey. Once you have your plan, you will want to revisit it now and again to make sure it reflects the realities of your business growth.

3. Support System

Human beings are designed for community, and those who are part of one will often get farther, faster and stronger. As a business owner, you should surround yourself with family members and friends who will support you in your efforts. In order to receive the encouragement that they are eager to provide, you need to communicate with them regularly about your business struggles and progress.

It’s also beneficial to surround yourself with those who understand your industry. Mastermind groups, mentors, podcast communities, and even books can provide you with camaraderie, inspiration, and empathy for the highs and lows in your line of work.

While it is true that the best support systems will provide constructive feedback, such criticism is different than negative words from naysayers. Those who directly oppose you or cast unfounded doubt on your plans are not a part of your support system even if they are people you know well. Consider leaving them out of your business conversations since their words and attitudes will not foster positivity.

4. Market Savvy

Success doesn’t happen by accident. If you do not understand the ins and outs of your market, your business will not reach its full potential.

In order to grow in this area, you will need to set aside resources for self-education. Such resources do not have to be extravagant. While it’s true that conferences and seminars may be helpful, you can also grow from books, online articles, and data analytics tools.

You will need to set aside time to engage the resources. Planning a specific block of time each day or week to sit down and learn, will ensure that it actually happens. Don’t let this item of the checklist become a good intention that never manifests! Your future self will thank you for your investment.

5. Insurance

Regardless of where you’re at in your business, it’s important that both you and your business are protected. Having the right insurance gives you assurance to ride out life’s risks.

General categories of insurance to consider are:

• Legal
• Health/dental
• Liability
• Tech

Where tech is concerned, additional measures can be taken. At the very least, it’s good to have a data recovery plan so you won’t lose your hard-earned efforts if the worst happens.

Some business owners opt to get a virtual private network (VPN) for added protection.

Local insurance requirements and considerations may vary, so do your research to determine which insurances you need.

6. Financial System

By definition, a business can’t be a business without a financial or trade aspect. In order to keep your affairs in order, it’s necessary to have a system in place. This generally includes a budget, a place to track revenue and expenses, and a means for tax accounting. Depending on the size of your business, you may also need a payroll system.

While it makes sense for some businesses to hire a CPA, many online financial systems provide exactly what you require. Products such as Quickbooks and Neat are designed specifically for small business needs. Check out the forbes article “The Best Accounting Software For Small Business Of 2022” for product descriptions and ratings.

When choosing a financial service, make sure you understand what is and is not offered in the service (this includes tax preparation features and live support options). Remember that just because a product worked well for an entrepreneurial friend does not necessarily mean that it will work well for your business’s needs.

7. Marketing Strategies

So, you’ve got a positive attitude, a killer business plan, a support system, a financial system, and all necessary insurances in place. But what good will these things do if you don’t draw customers? In order for others to know what you offer, they have to be exposed to your product or service.

While trade markets, print announcements, and door-to-door salesmen spread the word in days of old, today’s business owners don’t need to leave their chairs. In addition to such longstanding means as print and TV commercials, business owners now have the internet as a promotional tool. Primary web-based marketing platforms include:

• LinkedIn
• Instagram
• Facebook
• Twitter
• TikTok
• Snapchat
• Pinterest
• Business websites
• Blogs

With a little bit of research and know-how, many of these platforms can be set up and put to work within a day. Because of the amount of internet traffic, it may be smart to include a brief study of search engine optimization (SEO) or social media marketing strategies as part of your personal development time. You can also hire a professional copywriter or social media manager to assist you.

8. Documentation

While the internet has cut down our need for paper, businesses still require documentation to function. Legal documents outline business structures, invoices reflect purchase agreements, and contracts represent consent between parties for various types of exchanges.

Just as in the days of paper, the wording on business documents is very important. For this reason, you will likely want to consult legal advice or to use online business templates that are available for your specific line of business.

9. Organization and Communication Systems

This item is one of the most important on the checklist because it involves all aspects of the business’s structure and function. In order for all of the parts to run smoothly, there must be a system for how each area of communication and management will occur. Organization and communication systems differ from a business plan in that they provide the nitty-gritty workings of the tools and processes outlined in the business plan.

In order to function smoothly, a business should have structures in place for the following:

• Data management
• Email management
• Time/Calendar management
• Customer Support

Depending on the size of your business, these systems could be self-generated (computer or paper calendars, to-do lists, email lists, etc.) or automated. Many physical and online tools and services exist to help you stay organized. You can also consider outsourcing some of these tasks to a virtual assistant.

10. Downtime

While this last item may come as a surprise, taking regular breaks from your business is essential for personal, physical, and mental health. Our modern society often gives glory to those who seem the busiest but ignores the fact that overworking kills creativity and productivity. Not to mention, overwork can lead to illness, which may prevent you from running your business at all.

“Downtime” will look different for everyone but should include time when a person engages in enjoyable activities that provide a break from the thoughts and patterns of workflow. For best results, breaks should be engaged at large and small intervals, whether it be a 5-minute meditation break, a movie night, a weekend trip to the mountains, or a four-day personal retreat.

Another important factor is work hour expectations. Clear communication with clients about when and how they can expect you to be in contact with them and how they can leave you inquiries during your off hours will prevent confusion and stress. Such communication will also grant you the freedom to truly unplug during your chosen downtime.

A Tip for Using this List

While not exhaustive, this list exists to help you cover general bases. If you realize you are missing some of the items, do not fear! Setting priorities (such as making sure you have a business plan and necessary documentation/insurance) and taking small, daily steps to accomplish the rest (smooth business systems) is the way to victory

Along the way, don’t forget to dream about the future of your business and the life you want to live while running it!

WRITTEN BY: KATIE BARNETT