Responsibilities as a Business Owner

Owning a business is by far the most joyful thing I do in my life outside of traveling. The two are intertwined for one of my businesses, so I have the best of both worlds. It wasn’t an accident that I got here, though some of it leading up to it would appear that way. I’ve always been entrepreneurial and highly self-motivated, so I knew owning a business was in my future as a young person, despite starting my official post-college career in corporate. My idea was to get the other side of the coin so I could make the best decision for myself regarding my preferences in what I want to do “when I grow up.” I’ve yet to grow up and decide what my end game is, and I kind of love that. My many skills that I’ve acquired have given me the ability to shift and pivot and start new ventures at any stage of my life. It’s pretty magnificent.

Business ownership comes with a lot of pieces that people who don’t own a business couldn’t fathom. I know that because although I grew up in a family business and had very close proximity, I was still unaware of all that owning and running my own businesses (successfully) entailed. The nonstop decision making, figuring out best practices, budgeting and forecasting (not great at the budgeting still) are all parts of this life as a business owner. Because I don’t own brick and mortar and only have independent contractors who work for me, I don’t have some of the responsibilities that other business owners have, and vice versa. I’m going to speak from my own perspective as a business owner as well as what I know of many other businesses, and hope I can shed some light on what it’s like in general. It’s often a roller coaster, and the ride can be fun, boring, and scary depending on where you are in your journey. It’s all worth it, if you have the right temperament and personality. Let’s see if you do.

Researching for Work!

The responsibilities are truly endless as a business owner. You are ultimately responsible for every single part of the business, and you get the credit if things goes well and the blame if things don’t go well. The burden falls on you at all times, which makes for very interesting feelings and emotions that can bubble up at any given time. If the bathroom is dirty, it’s on you. Your business plan development will not get laid out if you don’t do it. Customers or clients complain? Guess whose problem it is? While it may feel like a huge weight, it’s also extremely joyful and gratifying. I wouldn’t trade it for the world, and if you have the grit and determination, business ownership may also be for you. Here are some of the responsibilities of a business owner in simple terms.

Business Plans Development & Strategic Planning

I’m not going to lie. I have never willingly made a business plan or roadmap. When I hired a business coach a while back, she encouraged me to at least have a mission statement and somewhat of a vision, but that’s as far as I was willing to go. One of my business owner heroes, Sara Blakely of Spanx, also had no business plan and winged things in the most magical way. You can write a formal business plan and try all the strategic planning you want, but sometimes the best things come when you just go with your gut and your heart.

Financial Management & Budgeting

Depending on how large or small your business is, this will be more critical for some than others. As a small business and one that only employs myself, I don’t find myself budgeting to a tee. There is a lot of number crunching with my profits and losses (done in proper profit and loss statements), and the distribution of it, but I’m not a down-to-the-penny type of business owner. I’m also very open to trying things out regularly, so once in a while I’ll use some money and put it towards a new product or idea and see how it goes. It’s important to know that you have enough money to be comfortable, and that’s the number one piece of advice I could give to someone.

If you have stakeholders, stakeholder communication is also going to be a major piece of your financial world. As you grow into this, if you do, you’ll probably want to seek counsel on this. I know I would. Let's also say that a customer doesn't pay you for services rendered. It's completely on you to collect, and it can be mentally taxing. When you do get paid, though, you know that you're the reason you did, and that's a great feeling.

Operations Management

For operations, this is really dependent on how many people are working at or for the company in some capacity. Having clear expectations for employees or contractors is a very critical part of a business, as I’ve discovered the hard way. Enforcing the rules or values of your company can be challenging, particularly as the business gets bigger and more people with more personalities come on board. Because I only have independent contractors, it makes it very easy to sever ties if someone is not playing by the rules (the rules being mine). Not everyone has this luxury, and it’s something to identify with how your business is set up and with your tax person. This is a lot of trial and error, as some of it may be standard practice and some of it will be the way that you tailor the business to fit your own vision.

Leadership & Decision Making

I’d never considered myself much of a leader, and frankly it’s not something I ever wanted to be. However, when you own a business, people naturally look to you to lead them. The decision making is on you, and most people work for someone else so they don’t have to be responsible for this aspect of the job. I’ve always marched to the beat of my own drum, so leading myself was always a thing for me. From a very early stage I knew taking orders from some higher up that wasn’t as smart or creative as I am would not work. So, I started my own businesses and voila. I’m my own leader.

Marketing & Networking

A marketing strategy is one of the broadest things a business could invest in. As an example in my own businesses, I have invested in several versions of what would be considered marketing. Most recently, I hired a company to help me with my Pinterest account, as I don’t use Pinterest myself nor do I want to learn how it works in detail. My business is perfect for this type of social media marketing, and I knew it would be money well spent. Sussing out what marketing strategies work for you is important. You can waste a lot of money if you don’t know where to spend your money. As far as networking goes, we’re always networking! Everyday with everyone. People are always watching and taking us in to see who we are and how we do things. It can be an enjoyable thing despite the perception that networking is miserable (because it also can be that).

Risk Mitigation & Change Management

Risk is a natural part of business ownership. In order to grow a business, there are some risks that must be taken in order to at least maintain or grow. Staying the same is not a great place to be, as things around change all the time regardless of us wanting them to, whether it’s technology or customer preferences or expectations. Being able to pivot and make good decisions for the business comes with experience and time, and my favorite thing to remind myself to do is to fail fast. If I make a mistake, I make sure to get out of the situation as quickly as possible if I see it’s not going to work out. Sometimes, things simply don’t work out and that’s ok. It’s all data and it’s all part of the learning experience.

Vendor / Supplier Relations

Not every business has to deal with vendors and suppliers, but many (and maybe most) do. That being said, there’s a way to deal with people. I know you know this. I’ve watched people in this position have excellent working relationships with vendors and suppliers, and I’ve watched others have no ability to maintain decent rapport. Much of it comes with temperament and expectations and simply a good fit. It’s imperative to be clear in order to successfully work with people in this capacity.

For my own relationships with people who supply things to me (which is mostly services) I don’t give many chances when it comes to service. I’ve adopted the saying “how you do anything is how you do everything” and it goes for the way I handle vendors and suppliers. If you’re dealing with vendors and suppliers, I’m assuming you’ll have some kind of inventory, so you’ll naturally need to have inventory management, and that could be small or large. Some people take inventory once per year, some more frequently. It’s all part of running a business as you see fit.

Human Resources and Staff Development

A critical piece of growing a business is growth, and that involves having a clear understanding of your company’s values and policies so your employees are able to mirror them. When things are unclear, things go awry and off the rails. I’ve been in this position before, where I was too afraid to make my own vision of my own company clear, and the inmates were running the prison. I’ve since learned that under no circumstances will I compromise my values and my company’s values to accommodate the desires of someone else.

If your company is big enough, having human resources compliance is key. You may even outsource this piece of your company if it’s small but you want to have this department in your business. Perhaps you need staff recruitment and training but it’s not your forte. Get help with this - that’s why people create these companies and I’m a huge fan of outsourcing to experts. Anyway you decide, know what you want in your business so others are crystal clear on your vision.

Continuous Improvement

This is my favorite category in all of life - personal and business. The need for continuous improvement looks different for every single business. It could be better customer service, realizing you’re growing it too quickly and scaling back to make it make sense, or hiring the right people instead of just anyone. For me, I’m always looking at what I can do slightly better to make my business a better place to be for myself and for my readers and clients. I typically do this on a quarterly basis where I take a look at where I am and where I want to go. Twice a year I go a lot deeper and see where I want to be and make sure I’m on the path to achieving my goals.

Things don’t always go as planned, but it’s good to have an idea. However you look at it and whatever it looks like to you, change and improvement are critical to growth and stability.

Working from Anywhere

Fulfilling your responsibilities as a business owner is robust. Depending on where you are in your business, how new, how established, it will look different for everyone. As I write this, I’m wondering how I can narrow down any of this because being a business owner is nonstop and there are so many advantages and disadvantages of being an entrepreneur. What I do know is that you figure it out or you don’t, you flourish or you don’t, you are sometimes in survival mode and sometimes in thrive mode. The sum of it is beautiful and special and a sentiment shared only among those of us who know this world well. I’ll share a few of the ways I know business owners fulfill their responsibilities. Some may resonate with you.

Effective Change Management

Things change. That is one guarantee of life. When you can navigate change effectively, or as best as you can with the best attitude you have, owning a business will be much smoother. One of my mantras is saying “it’s just data. I’m collecting data.” It de-personalizes any decision or event that happens, as so much is not within our control. Eliminating high emotions and rash decision-making is going to put you ahead of so many people. Additionally, if things do go wrong, your incident and crisis response will be calmer and help you pivot more quickly. Practice changing, practice pivoting, and get comfortable with it because it’s coming.

Communicate Transparently

Transparent communication is by far one of my most effective traits as a business owner. It builds trust, and while sometimes it’s not perceived as “easy,” it’s part of my best practices. With my clients, they know everything that I recommend and relay to them is vetted and, to my knowledge, in line with how I like to do business. Each company owner and company has a vibe and values that draw customers and clients to it. Your service alignment to your people is critical and it’s how people choose you. This is part of communication transparently and effectively. It’s the best way to get you to the right people and the right people to you.

Prioritize Resources Wisely

While I would love to tell you that resources are unlimited, they are not. We could be talking about your time or your money, and even the number of clients that you attract. It’s imperative to prioritize what’s the most important thing. As they say, the most important thing is the most important thing. You must learn to identify this and make your decisions accordingly. It’s the same in life in general. Resource prioritization will help you grow and sustain your business, and it will put your mind at ease. This can be done in numerous ways and as frequently as you need to do it. There is no one method, so choose one that works for you.

Commit to Continuous Improvement

It’s worth saying this again. Things are always going to change, and the quicker your realize that failing fast is a gift and not a curse, you’ll be able to excel and make better decisions in a more timely manner. The change may even be your own preferences and desires as a business owner. I’ve changed my business model based on what I saw as a need in my market as well as what lights me up inside to do as a business owner. The two can absolutely come together, and the sooner your realize you have this ability, the happier everyone involved will be.

With all of this being said and part of owning a business, it can feel like a lot, and it is. I’ve only been able to go through it day by day, making plans and strategies as I can, and write about my experiences. Business ownership and being an entrepreneur are completely part of my identity, and I’m steeped in this world more and more everyday. Giving my knowledge and advice is part of my commitment to helping others grow and even decide if this world is right for them.

It takes a special type of person and personality to persevere and thrive in this environment, and if it’s you, I applaud you. It’s not for the faint of heart, but it’s definitely for some of the most interesting and fascinating people I’ve ever met in my life. If you have it in you, go for it. It will bring you to your knees and cause you to fly your highest. It’s a wonderful place to be.

If you liked this blog, you may also like the one I wrote about the advantages and disadvantages of being an entrepreneur.

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