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2. Profitability.

Many entrepreneurs get into the game with monetary desires, and there’s certainly nothing wrong with this. But some lose sight of the importance of profitability in favor of growing the business. They might channel all incoming revenue toward purchasing new equipment or hiring new staff, focusing on growth rather than sustainability. In some cases, this gamble can pay off, but it’s generally a strategically poor choice.

Even if you started a business for non-monetary reasons, profitability is still vital; without profit coming in, you’ll be unable to improve the business, sustain yourself, or invest in your own future. Choosing to take a loss in the short-term may occasionally be a necessary sacrifice, but in a broader perspective, your focus on profitability can never be abandoned if you want to succeed.

3. Cash flow.

Cash flow should be your ultimate financial priority in your business. Put simply, cash flow is a read of how much money you currently have and how that money will change in the near future. For example, you might have $1,500 in the bank, but you’re expecting payment for a $3,000 invoice, and you know a $1,600 bill is coming up. Managing your on-hand cash is vital to ensure that all your bills are paid on time. Just because your business is profitable doesn’t mean you’re in the clear. Some businesses have run out of cash and closed up shop even though they appeared profitable on paper. 

Manage your cash flow tightly by dedicating at least one person to actively monitor it. Think critically about your on-hand cash before making any major financial decisions, and implement procedural stopgaps that help you stay cash positive. For example, you can delay payments on bills to the last possible day, and run credit checks on your customers to avoid non-payment issues.

4. Culture.

The culture of your business is what’s going to keep your team working hard. If your culture starts to decay, even if it’s in favor of promising new opportunities, you may alienate your core workforce and end up with a disheartened skeleton crew to push your business forward.

Let’s say you get a new client and you’re worried about how you’re going to handle the work. Instituting a series of cultural changes, such as stricter scheduling rules and more bureaucratic processes, might do more harm to your company’s morale than good for your company’s efficiency. Think carefully about the cultural impact of your actions.

5. Improvement.

Last but not least, improvement should be one of your top priorities as well. Businesses, customers and economies never stay the same for long, so you’ll need to work hard to gradually adapt your business to the new circumstances. As you gain more experience as an entrepreneur, you’ll learn to make significant, steady improvements in your products, services, infrastructure, processes, branding and marketing. Only the adaptable survive on an evolving landscape.

Never sacrifice one of these priorities to correct or pursue something lesser. The most successful entrepreneurs of our time are the ones who kept these priorities straight and unbroken, no matter the circumstances. If you can do that, while still managing the chaos of day-to-day management, you’ll have no problem paving your own road to the top.

About Author

Freelance Writer & Former Entrepreneur Larry Alton is an independent business consultant specializing in social media trends, business, and entrepreneurship. Follow him on Twitter and LinkedIn.