Running a successful business is hard work. It is not just about the work that your employees do; as a director, you will need to take care of certain responsibilities and perform certain duties to help the business become and remain successful. Here are ones according to Real Business Rescue you should adhere to for success:
Ensure You Pay the Right Tax
It is your responsibility to ensure that the business pays the right amount of tax – on time. Hire an accountant to make sure the right deductibles are taken off and the paperwork is filed correctly. A good accountant will help you make savings on your tax and give you advice for the next year. Some will even file the paperwork for you and inform you of the amount of tax you need to pay. It is your sole responsibility to make sure that that payment is made to avoid a fine.
Act in the Company’s Interest
It is very easy to start acting with the shareholders’ interests in mind but you should not do this. The company has to come first at all times, even if this means that the shareholders will lose out on money or profit. This is also the case for those who are sole traders or run companies with no shareholders. Without the company, there would be nothing for the owners and the shareholders to gain from.
The shareholders’ interests will always come before the directors. You cannot harm your shareholders’ profits to enrich yourself at any time.
Diligence and Due Care
It is important to know everything about the company – the way it works, the profit being made and the separate sections of the company. This will allow you to act with reasonable care and diligence, as well as with skill. If you have a particular skill, you will need to have more knowledge in that particular area. For example, as an optometrist, you would need to know more about the eye care and optometry side of the business, while knowing the basics of the finance and running of the business.
Avoid Personal and Outside Interests
It is important to avoid any conflict of interest as a company director. Personal interests in a situation will lead to a biased option or advice, whether dealing with other companies, customers or members of staff. If there are conflict of interests it is important to find another way of dealing with the situation. For example, if there is a conflict of interest when dealing with a disciplinary of an employee, another director or manager will need to handle it.
You should also declare if you have any personal interest in a matter, especially when it comes to transactions with others companies. This will help to avoid issues later on should you have no option but to act on the situation yourself.
Know Your Legal Responsibilities
You will need to make sure that you understand the basic legal implications of your decisions. This includes employee rights, contracts and dealings with customers or patients. If you are unsure, it is up to you to seek legal advice on a situation. This will help to avoid issues, whether with your contracts, the way that you have treated employees or your own actions with the company. For larger companies, it may be worth having a legal body associated or connected to you to help with any legal issues. This is often provided for franchises so the Head Office is protected.
Ensure a Hierarchy in the Company
You should make sure that an effective and efficient hierarchy is in place throughout the company. This will help to limit the number of menial problems that reach you and only deal with the big issues – so you can concentrate on others areas of the business. You will need to ensure that your managers have training and understand the business to instruct other employees lower down. It will be up to you who is employed as a manager and you will have final say on any new employees that come into the business.
Take your time to know about any legal implications your actions have for the company. You will be responsible for any issues with the business, including financial problems and liability. By having an effective management within the company, you will be able to concentrate on the business and make sure that you act within the law at all times. This will help to avoid having to pay damages or fines in the future. If you run a franchise, the Head Office will be able to give advice.