What are the 3 most important tools any new business must have?

Written By Steps To Faculty Published June 25th, 2010

It’s your big moment: your personal business is about to start up and you are about to become your own boss at last. However, after the business plan has been drawn up, after the goals and objectives have been established, what are the most important tools that your business – that any business – must have? In this context, we are not thinking so much tools in the physical sense but assets, modes of operation, that distinguish successful firms from struggling ones. The obvious answer to the question above is people – but there are 3 other tools that might be at least as important.

Step 1 – The first tool: a good book-keeping system

So often, businesses lose out on tax deductions, credits, or even government grants because their book-keeping is bad – which means that valuable receipts are lost or that valuable paperwork never finds its way to the right place. The first step towards taking advantage of every loop hole that comes your way is to make sure that you have all the receipts where you can find them and all of the client accounts in a location where they can be found quickly and where specific documentation can be found quickly, too. At the end of the day, sometimes it is not so much the money you shell out to staff but the money (or refunds) you lose out on from the government that really hurt the bottom line.

Step 2 – The second tool: a fast, easy payment system

This hearkens to something that was discussed in another article: when you operate your own business, you want to be paid; you do not want promises or guarantees but prompt payment; after all, our bills never wait. With that in mind, one of the best tools that any good business has is a fast and easy payment system. What this means is that clients can make payments online and in a variety of ways. Thus, having a commerce manager online is never a bad idea; allowing people to pay in cash, or by money order or by check is never a bad idea; and having an automated system in place that keeps track of current and past accounts (and sends reminders to clients and to you that payment is due) is always a good way of ensuring that you get your money when you want it.

Step 3 – The third tool: a fast, easy means of distribution

When you run a business, there will inevitably come times when you will have to ship or distribute items to people; that is always going to be a bit of a pain. Without question, you need to find the method of distribution that will be best for your organization. If it is a service you are offering, then you can probably get away by using the internet to transmit documents or finished goods; if it is a physical product or a manufactured good, you might have to resort to shipping the product (assuming that the client does not want to pay the shipping fees). In these instances, you have to ask yourself if train, plane or truck is the best way to go; shipping via truck is often the cheapest way, but it will really come down to the best prices you can land for bulk shipments and whether or not firms offer deals for frequent customers.

There is no doubt about it: the best firms have the best tools – but all good firms focus on having the best tools in the same general areas. If you want success, you need to have a strong means of keeping the books in order; you need to have a fast and efficient payment system in place; and you need to have a fast and easy means of getting the product to the customer at a price you can bear. Business is not always rocket science – but strong businesses are always built on a few strong fundamentals that employ a few key tools.

Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.