Passion is an essential ingredient to the world of business success, but it’s of course not the only ingredient. Effective management is just as important; even the most passionate person won’t get much done if they aren’t organized. Managing a business takes a great deal of knowledge and experience. But here are some of the basic fundamentals, taken from an article I read on Business Insider:
Finance: Cash is king, and cash flow is essential. However, this often gets forgotten in the day-to-day running of a business. Basically, proper accounting means keeping track of your income, and making sure that it increases. Growth needs to be funded, which means that many projects can consume cash for a long time, but these will (or should) eventually start to generate their own cash.
Marketing: Look at your product through the lens of the customer, and understand its value and service. No matter how great your product or service is, you need to convince the customer first and foremost.
Strategic planning: The fundamental of strategic planning is to be in a good industry or market niche with growth and healthy profit opportunities, where you can actually fit. This makes everything a whole lot easier and more profitable. For example, if you’re passionate about movies, a video rental store isn’t the way to go.
Leadership: Important as your capabilities are, it’s more important to know how to lead and unite a team. The best work and insights come from working with a good, diverse, and committed team that’s unafraid to share their thoughts. Of course, this is a lot easier said than done.
International business: If you’re dealing with international business partners, it’s essential to understand their culture. Make an effort to learn about the culture, history, and mindset of other cultures. You’ll be glad that you did!