Are you planning to start a new small business? Here are three important concepts which should always be on your mind when making business decisions:

1. Cash flow
In the short-term, cash is the first key to a successful new small business.
This has several implications when it is time to make purchases for the business.
The first question always has to be: Is the product or service I want to buy really necessary? If so, a careful determination must be made as to what level of quality is needed to accomplish the task at hand.
These two questions then naturally lead to a third: Can I obtain this product or service for free, or at reduced cost? Sometimes, the answer to this may include barter for services or goods your business provides, which should be relatively cheaper than paying cash outright.
Barter may even include a third or fourth party who act as intermediaries, enabling exchange with others who do not need your services or products directly.
Only when all of these options have been exhausted, should you pay cash for something your business needs.
Running out of cash is guaranteed to sabotage your business, so it must always be watched very closely.

2. Profitability
In the longer term, profitability is another key to having a successful business.
For many new ventures, profitability does not happen right away, so there must be sufficient cash to keep the business operating until it reaches the stage where it is profitable.
However, a plan for profitability must be included in planning for the business, and this must be monitored very closely.
If the targets for profitability are not being achieved, significant changes must be made to the plan, the execution of the plan, or both, so that profits get back on track as quickly as possible.
If profitability can not be reached, then it is best to acknowledge this fact as soon as possible, so the business operations can be wound down and other ventures or opportunities considered instead.

3. Customer Satisfaction
A business exists to meet the needs, solve the problems, or otherwise help customers to reach their own objectives.
A business which fails to keep track of its customers needs, or how its performance has been in this respect will eventually lose those customers.
While different customers can be cultivated instead, there will always have to be someone who pays the bills (and hence, generates the cash flows and profitability mentioned above).
Every owner should be in the habit of periodically talking with customers, asking what they need, what could be done better, and if there are any improvements they would like to see.
Doing so can be the difference between survival and failure, especially in tough economic environments.

Therefore, in starting a new business, it is vitally important to take into account cash flow, profitability, and customer satisfaction when considering a new opportunity.
These are certainly not the only considerations, but they are basic to every business.
Should they be overlooked or ignored, business failure usually follows swiftly.
Copyright 2010, by Marc Mays