All business owners, no matter how big or small their companies, want to make a profit. To be successful, you must be able to identify obstacles and trends that will impact your business before they negatively affect your bottom line. Setting the foundation for a well-managed company will allow you to be proactive instead of reactive. If your company is well-managed, every aspect of running your business will be easier and more efficient.

There is no one big secret to managing your company well. It takes a combination of effectively managing your employees, your costs and your personal life. By focusing on the following areas, you can make informed decisions before a crisis occurs.

• Clearly identify your services-Owners of well-managed companies have clearly identified the products and services they provide and accept orders based only on what they can do well with their experience. Quotes and proposals should have terms and conditions of sale favorable to the owner's company.
   
• Know your own skills-Know and perform your duties based on your best skills and personal motivation. Don't be afraid to delegate. Other key duties should be delegated to employees and outside professionals who have more skills in a particular area.
   
• Know your costs-Detailed job or project estimating should be compiled to provide data for equally detailed job costing. Review the outcome of all jobs completed by your company, and focus on profits. Customer service does not have to result in lost profits.
   
• Communicate with your employees-Business owners must communicate clearly and consistently with all of their employees, in writing and verbally. Effective owners employ people with integrity and competence, and respect their employees. To earn respect from your employees, promote from within. Never place a relative in an unearned executive position over tenured, qualified employees. Good managers balance a good sense of humor with the ability to apply stern, firm direction.
   
• Know your customers-Owners of well-managed companies are always aware of the percentage of their business that is performed for their top 10 customers. Know a lot about your customers-where they sell their products, economic conditions in their markets, etc. Watch for economic changes with your customers.
   
• Understand that bankers don't like surprises-Having a working relationship with your banker is crucial. Understand the terms of loan agreements and borrowing conditions, and contact your banker regularly to discuss your operating condition. Always follow through on advice from your banker.
   
• Go out and get new business-Well-managed companies recognize the need for marketing and advertising. They are aware of their competition and their desire to succeed. They are knowledgeable about the newest technology and equipment, and understand that new technology is developed every day. Successful owners know that new prospects will be the source of tomorrow's business. The mailman is not your sales manager, and the big order that you need will not just come in the mail. Be proactive in seeking new business and accounts.
   
• Ask for help-Even the most successful business owners need help. Ask for information from your attorney, accountant and other experts. Be decisive. Recognize when a change is necessary and have the courage to make unpleasant decisions when needed.
   
• Look for opportunities to expand-Being an active member of a trade association is an effective way to learn about opportunities to diversify your services. Take the time to see and understand what is going on in the world outside of your company.
   
• Maintain balance-Owners of well-managed companies balance their families, their hobbies and business. Plan and take regular vacations, and know that the world will operate well with or without you.