With 2023 coming to a close, talk tends to turn to New Year resolutions. Personally, I see each day as the start of a new 365 day cycle. Essentially, every day is an opportunity to begin a transformation. However, I do appreciate how the crispness of a fresh year is motivating. To inspire your 2024 resolutions for your business, here is a list of the best habits for entrepreneurs.
What are habits?
First, let’s get clear on the definition of habits. Habits are behaviours and choices you make regularly. These are frequently automatic, unconscious actions, like scrolling through your phone while having that first cup of coffee.
According to James Clear, the author of the groundbreaking Atomic Habits book, research has shown that habits account for about 40% of our behaviours on any given day. And each individual small habit may seem insignificant on its own. However, as it is repeated again and again over time, the aggregate effect is enormous. Think of a leaky tap. It’s just one drop at a time, but after enough hours pass, the sink would overflow and flood the room.
This is what I find so inspiring about hagstones – they are proof that small actions over time have the power to create breakthroughs and significant change. Which is why these best habits for entrepreneurs are valuable for service business owners looking to level up in 2024.
Best Habits for Small Business Management
Keeping on top of business management functions is one of the best habits for entrepreneurs. When these tasks slide, it creates problems which can be costly and stressful to resolve. Therefore, it is important to maintain these regularly.
1.Bookkeeping
Ok, this is boring stuff, but it is important. When bookkeeping is updated monthly, financial reports can be reviewed to track budgets and monitor results. This includes monthly and annual tax filings for employee remittances, government tax submissions, and any required reporting.
2. Journaling
The habit of keeping a journal creates space to reflect and brainstorm. It’s useful for small business management as a safe place to record ideas and vent frustrations.
For more, read How to start a journal to increase success as an entrepreneur
3. Taking a break from business
Certainly, it seems counterintuitive to say that taking time away is a good habit for small business management. However, burnout for entrepreneurs is real. So making a habit of time for fun, rest, and relaxation benefits the business. After all, when an owner is exhausted, it negatively impacts their ability to manage effectively.
Best Habits for Team Building
Even a small team benefits from team building. Doing these activities regularly will create stronger communication and cooperation, which improves productivity.
1. Hold regular meetings
This could be a monthly review of KPIs, or weekly share of projects and priorities. Keep it short and meaningful to boost staff engagement.
2. Build a feedback loop
To create a supportive environment, make sure there is a feedback loop to hear from your team. While a structured annual performance management review is valuable, also make regular check-ins a habit. Monitor mood and performance for changes. Give them an opportunity to share concerns and ask questions.
3. Reward and recognition
Does your team know when they are doing well? Make reward and recognition a habit. This can be as simple as sharing when someone has gone above and beyond. Also, you could build a structured system of earning points to be redeemed for paid time off, a cash bonus, or a gift card.
Best Habits for Strategic Planning
It is not unusual for business owners to be so involved in daily operations that no time is spent on review and analysis. The best habits for entrepreneurs in 2024 include these strategic planning activities.
1. Monitor KPIs
Not sure what this is? Read What are KPIs.
How do you know how your business is doing if you don’t monitor metrics? Numbers don’t lie. Make it a habit to regularly review performance, output, quality, and financials. Compare current results with last month or last quarter, and also look at the difference year over year. This is a valuable habit of small business management which drives decision making.
2. Competitor analysis
Make it a habit to keep track of what competitors are doing. For example, if part of your growth strategy relies on a specific competitive advantage, that may shift depending on what your competitors are doing. Smart strategic planning requires understanding what similar businesses are doing. Otherwise, how will you know how to stay competitive, and spot opportunities to grow?
3. Review market and sector
Also, regularly check in with trends and changes in your sector. Consumer expectations shift over time. And changes in technology impacts productivity and profit margins. Therefore, make it a habit to stay informed and up to date with political, technological, and societal changes that impact your strategic plans.
Overall Best Habits for Entrepreneurs
As shown above, actions repeated regularly over time creates meaningful results. By making these activities a habit, entrepreneurs develop strong business management skills. Remember that where your business is now is a direct result of habit and behaviours of the past. Finally, embrace these habits in 2024 to level up and grow your business.
