Always be looking for ways to improve your business and to make it stand out from the competition. Recognize that you don’t know everything and be open to new ideas and new approaches to your business. (For related reading, see: How do I determine my company’s competitive advantage?)
Start by setting up the main accounts to monitor. Separate your assets, liabilities, expenses, and equity. Assets are your cash on hand, inventory, accounts receivable, checking account, and savings account. Liabilities are your credit card and accounts payable (what you owe), then there are your general business expenses.
Report. No matter which source you raise funds from, be sure to provide key operating, strategic and accounting information to your financiers periodically, usually twice a year. It’s a good idea to hold a board meeting if everyone can physically attend. If not, do it via teleconference.
Think about who is most likely to buy your product and why they would buy it. For example, if you are selling dentures, it makes little sense to include younger people in your marketing considerations.
You require money to start your business, but how much do you really need? Without a clear idea you run the risk of coming up with an unrealistic valuation of your business, which will put off investors and get your loan application rejected. So before you start wondering how you should raise money, you should focus on evaluating your funding requirements. How much do you need to get started? How exactly are you going to use the funds?
Meet with your local Small Business Development Center. SBDC’s provide help during all stages of the business life cycle. They can help you create a stellar business plan to approach a lender with and their counseling is always free.
To be successful in business you need to be organized. Organization will help you complete tasks and stay on top of things to be done. A good way to do this is to create a to-do list each day. As you complete each item, check it off your list. This will ensure that you’re not forgetting anything and you’re completing all the tasks that are essential to the survival of your business.
Think strategically You started your business with a plan. You need to grow your business with a plan, too. The most effective leaders are those who analyze, plan and look ahead when solving problems and making decisions. Harvard Business Review said a strategic approach to leadership is 10 times more important to being an effective leader than other common traits like communication and skill level. Approaching your daily tasks and long-term goals with strategy and planning will increase your opportunities to achieve success.
Social media is another low-cost way to market your business. At the very least, you should get your Twitter, Facebook, and Instagram accounts up and running, and make sure that you’re posting at least a couple of times a week. You can post things like announcements for events and sales, pictures of the products you’re offering, or even fun things like famous quotes that relate to your business. Be sure to use hashtags and tag appropriate people in your posts, which increases the likelihood of getting more shares and likes. If you’re feeling stuck, Twitter, Facebook, and Instagram all have guides on how to use their platforms to market your business.
Develop a passion for learning. As your business changes and grows, you need to change and grow along with it — particularly as you transition to manager. The one common denominator you find in all successful business owners is a passion for learning.
Pay attention to your customers. After all, you have to see a customer to know one. No matter how busy you are, especially in the early years of your business, be sure to spend at least 25 percent of your time with customers. You can’t make the right business decisions without understanding the customer’s viewpoint.
You have a brilliant idea that you know will definitely work, but what about your competition? Will it be difficult for a rival to copy your idea and repackage it in a better way? A potential investor will ask you this when you approach them for funding. It’s very important to understand the market you operate in and your competition.
You’ve decided to run a credit check on a potential client to ensure that you’ll get paid for your services. Once the report arrives what are you really looking at and how can you use the information to make the best decision? This article can help.
Be involved. Once you have decided who should be responsible for the duties in your business, you need to remain involved to make sure all of your employees are following through with the tasks that have been assigned to them. Also, you need to be responsive to the needs of your customers. Make sure you are aware of customer needs and feedback and don’t back away from engaging with your customer base, even if that duty has been assigned to an employee.
Network as much as possible. Gain the support of other local small businesses by networking with other small business owners. Join small business associations and participate in community events to raise awareness of your business. Participate in community functions so potential clients will be aware of the services you offer.
Even though your business may be small, if you approach your role with the same mentality as a big business executive, you will soon realize the level of success you need to drive the results you desire.
Get your license. Remember to register and acquire your small business license in the particular industry of your business. This step is important to ensuring that you’re running your business legally and according to industry regulations. Be sure to register for permits related to particular services you offer, like home repair or tax preparation, which could require registration and certification. You will not be able to hire effective employees if your business is not operating with the appropriate licenses and permits.
Stop worrying about stuff that doesn’t matter. So many people think PASSION is the key to business success. That if you just care enough the rest will take care of itself. First, any successful person that says this doesn’t take into account the PASSIONATE people that failed. Second, passion is just where we need to start. To truly succeed in business we need SYSTEMS. Three, specifically:
Create ideas fitting your budget. Once you know how much money you have, research the costs of different types of marketing and come up with ideas which fit those methods and are effective for the price range. If you have a lot of money to spend on marketing, for example, you can consider shooting a commercial. If you have almost none, you’ll want to think about ways to use social media effectively, which is very effective for requiring little money.
CIT and Operation HOPE Join Forces to Help Small Businesses Launch + Grow To celebrate Financial Literacy Month, CIT and Operation HOPE are partnering to educate and empower small businesses with tools and tips for success. Hear inspiring stories from a diverse group of small business owners at
Choose a business structure that makes sense for your ownership arrangement, such as a partnership, if you’re starting your business with one friend. Consult a lawyer about the best structure for your particular circumstances.
From managing to marketing and everything in between, the world of small business can be both exciting and overwhelming. It’s a place where no two workdays are exactly the same and where unpredictable things happen. If you’re thinking about starting (or you already run and manage) your own business, check out the following list of tips to improve your chances of success.
Manage your inventory efficiently. Inventory management can make or break a small retail business, so manage it carefully to ensure that you’re maximizing every dollar spent. Invest in small inventory quantities at first and continuously monitor inventory numbers so you know what’s selling and what isn’t. Rotate inventory frequently to remove slow sellers and replace them with new items.
Talk with your bank. Talk with a bank with whom you already have a positive relationship. Ask about what kind of business start-up loans they offer and how they can benefit your business. By using a bank you already know, the bank will have easy access to your financial records and will be more confident in investing with you.
Depending on your industy, there’s plenty to consider in location-scouting beyond curb appeal. Look at zoning by-laws, and be sure to note any conditions that could impede your progress (or consider hiring a municipal lawyer). Conduct a traffic analysis to ensure customers can actually get to you. And be sure to consider nearby competition. Would you want to open an electronics shop next door to an Apple Store?
Ensure collection methods are in place. Be sure to account for how your business will collect on bills due and outstanding debts to your company. A successful business needs constant cash flow. Being unable to accept customer payments or waiting on those who owe you money will disrupt your business.
Remember that nothing happens until a sale is made. How many good products go nowhere because they don’t reach the shelves? Sales are what drive your business. You need a crackerjack marketing plan that details how you intend to package, promote, distribute, price, and sell your product or service.
Seek venture capitalists or angel investors. Angels are high net worth individuals and venture capitalists are companies. Both fund a promising high risk venture for a stake (partnership) and often bring experience, management expertise and contacts to the table. They usually work through a network or association.
You’ll also want a payments device that can accept mobile payments like Apple Pay, which is ultimately where everything is headed. Contactless (NFC) payments like Apple Pay are by far the best customer experience. They’re convenient, secure, and fast, so you can check people out in seconds. Having the latest and greatest payments processing technology allows you to securely accept any form of payment that comes across your counter.
Whether or not your primary objective in running a business is to earn a lot of money, you must must make enough to keep your company afloat. To be financially sustainable, a small business must take in more revenue than expenditures on basic operating expenses. Even if you’re not practiced and comfortable with business bookkeeping, you can develop basic skills to help you understand what is going on with your business financials.
Now that you have a plan, it’s time to put it through the ringer. Though the oft-cited statistic that 80 per cent of businesses fail in their first five years is false – the U.S. Bureau of Labor reports the five-year failure rate is actually around 50 per cent – it’s still a tricky feat to launch a new business.
It’s not up to them to approve of your idea or let you know whether starting a business is right for you. Only YOU can do that. This is very different from what we were taught as kids. Starting in kindergarten, we had to raise our hand. “Mrs. Kundle, can I go to the bathroom?” “Yeah, you can go to the bathroom, Timmy.”
We do this all the time. We see a famous CEO and point out how “he took 5 companies public and got a Harvard MBA.” We see a successful children’s book author and point out how “she already knew 4 publishers, so her book got published immediately.”
Large businesses can afford to be unresponsive and lose a handful of customers from time to time. Small businesses cannot. As a small business owner, it is up to you to make yourself and your company accessible to potential clients and your customer base. This may require you to make your personal cell phone number or email address accessible to clients as you attempt to grow your business.
In a sole proprietorship, all the profits and decisions are yours – but so is the liability, which is unlimited. A partnership – where two or more people create a non-incorporated business – allows you to share startup costs and management, but again liability is unlimited and you’re financially responsible for your partner’s decisions. In the rarer co-operative, members own and control the business, limiting liability but making decisions more time-consuming. Finally, in a corporation – where the business is a legal entity – liability is limited, but regulations are tight and getting started is expensive.
Do you want to grow your business rapidly and profitably? If so, the only way to start is with an honest assessment of your business as it exists right now. Send an email to firstname.lastname@example.org and we’ll schedule a time to talk.
When starting a business, there are important differences between starting from scratch, buying a privately owned business and buying a franchise. To know what steps you need to take be sure to read these articles:
When you’re running your business, you should always be looking for areas where you could be more efficient. And if you’re doing everything manually, there’s a good chance there are a lot of things that fall into that category.
Playworks is a nonprofit that leverages the power of play to transform children’s social and emotional health. During the 2017-2018 school year, Playworks will ensure that 1 million children from over 2,000 schools experience safe and healthy play every day.
Keep costs low As a startup or small business, you know the importance of spending less to earn more. Big businesses operate on this same philosophy. While big businesses are often able to leverage buying power to reduce expenses, there are many no- or low-cost resources small businesses can take advantage of.
As a would-be small-business owner, you might be eligible for an influx of funding from various government grants. Do your homework. Don’t just look for “grants,” by the way, but also awards, rebates, tax credits, industry-specific incentives, or non-repayable loans. You won’t want to overlook any potential source of funding.
Before you do any estimating, it’s important to understand how start-up costs are categorized. All start-up costs (meaning costs in the period before you start generating income) include two kinds of spending: expenses and capital expenditures.
But this stuff doesn’t happen easily or quickly. So if a starting a business doesn’t sound like it’s for you, I’ve covered how to make more money elsewhere on this site. But here, I’m revealing the advanced strategies behind launching a successful business that gives you the freedom to share your skills with the world — and create something people will pay you for, even when you aren’t working.
To store and share files, there are programs like Dropbox or Box.com. To measure your website’s online performance, there’s Google Analytics. To communicate with your customers, there are email service providers like MailChimp. There are even free resources to calculate employee payroll, like Intuit’s Snap Payroll app. Check out additional free business resources [hyperlink: http://www.slideshare.net/FitSmallBusiness/top-25-free-business-software] compiled by FitSmallBusiness.com.
Use a little old fashioned networking. Go to conferences, charity galas, meetings with complementary businesses and anywhere where your customers are likely to be highly concentrated. In other words: get out in public and interact with people. Use your friends connections to meet people who may be able to help you. This kind of interaction is very important for starting a business. You can’t exist in a vacuum after all.