Building a successful business is a marathon, not a sprint!Many long-time small business owners would agree with the line from the 1970s song by the band Faces: “I wish that I knew what I know now.”Over years of running a small business, owners inevitably gather many lessons about how to grow and run a business more effectively. Thankfully, many of these owners are more than happy to share their insights. You may also like 10 reasons why small businesses fail
Here are 12 tips from several successful small business owners that are worth paying attention to
1.Forgetting to count the costs.
Like any other large-scale project, such as building a house, successfully launching a business requires a thorough, upfront accounting of costs, both financial and personal. Under capitalization is one of the top reasons for business failure, so before you launch, make sure you have a detailed budget that includes not only startup costs but the living expenses you’ll have to take on before your business can start paying you. It’s best to assume it will cost more and take longer than you initially think it will. And it’s also important to include the personal and family costs since startups can be an all-consuming enterprise. It’s better to overestimate the costs and be pleasantly surprised than to project an overly rosy scenario and end up bankrupt.
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2.Failing to delegate and ignoring critical functions.
No one person is great at every facet of running a business, so make sure you identify each critical function and delegate tasks to the best person to get the job done. Use your strengths to the company’s best advantage and offload functions that others can do better.
Also, make sure you never just ignore the things you don’t like to do. You can go bankrupt just as fast for failing to pay federal payroll taxes as you can if you don’t generate sales. There are many critical functions involved in running a successful business. Get the right people on your team and be sure each one is in the right position.
3.Not planning for profitability.
One of the first things you should do when making a business plan is to define the business model. Running a non-profit or charity can be satisfying, and it definitely takes business skills, but before you can succeed in any type of business, you’ll need to know your profit model inside and out.What is your gross margin on sales? Your net margin? How many sales do you need to break even each day or week? What is the worst case scenario, and how would you overcome it? Establish the key performance indicators (KPIs) for your business that will let you know how your company is performing. Numbers don’t lie, they’re not emotional and they don’t make excuses. If the numbers show you are in a steep decline, take action and make changes before you crash. But you can only do that if you define and measure your numbers
What is your gross margin on sales? Your net margin? How many sales do you need to break even each day or week? What is the worst case scenario, and how would you overcome it? Establish the key performance indicators (KPIs) for your business that will let you know how your company is performing. Numbers don’t lie, they’re not emotional and they don’t make excuses.
4.Do enough research on the customers demand for your product or service.
Remember – just because you like sugar milk, that doesn’t mean everyone likes it. Too many small businesses fail because the owner overestimates demand. Before launching your venture, find out how strong the demand is for your product or service. Is it a product or service that most people need or want? Does it fit with current trends? For instance, a DVD rental store is probably not a good investment now due to the popularity of streaming services. Before settling on a business venture, ask yourself if the benefits to the customer are compelling and easy to understand. Test demand for your product or service by vetting it with a wide range of friends and family who will be brutally honest with you
5.Find your competitive advantage
Whether you operate your business in a small community or in a large urban center, word of mouth is more important than ever for business. Most consumers turn to the net to search for reviews of businesses before deciding where to shop, so building a good reputation is vital to the success of your business.Try hard to have an extra advantage of your products or service over you competitors
6.Start promoting your business
Effective marketing is key to increasing your sales, but you don't have to break the bank to promote your business. There are many inexpensive ways to market your products and services, including:creating a website and/or creating a Facebook page. Tweet about your business on Twitter, and create an email newsletter. My favorite restaurant sends out a weekly email newsletter with menu selections and specials of the week.
Cold calling, asking for referrals, and always carrying business cards are also inexpensive ways to increase your marketing profile.
7.Keep your operating cost low as possible
You have to check how to cut down your expenses to allow your business to grow smoothly. Lower Your Office Space Costs example you can apply mobile shop,Cut Staffing Costs by employing the family members who have enough skills to do business with you.
8.Find the right employees
Be careful when hiring your employees,find the really talented,competent and self motivated employ who can operate the business with you,this will add value to you business success.
9.Build a supportive connection
Find the people who you can network with,who are already in business and experienced which can add you experience,through networking it comes easy to find new opportunity and use them effectively.
10.Always focus on your goals
Keep you goal and vision try hard to work in order to reach your goals, set goals weekly,monthly,quarterly and annually goals,focus and review several times your business plan if you prepared it,If did not prepare it now.
11.Keep Your Day Job Just a Little Longer
Working longer hours has proven to have good results and contribute your fast growing business,if you have a shop make sure that you open it early in the morning and you can delay to close this can be an added advantage against your competitors to win customers who have limited timetable example when i was in Kahama town i used to find photo services in town because i was employed somewhere only time i got is 6:00 A.M in the morning when i was going to the office and at evening when back to home so i used to find one shop open and i was always get all service there.
12.Stick With What You Know
Most of the entrepreneurs we met launched their companies in industries they knew well from prior experiences.Sam Spayd, founder of Aero Legends in Florence, Ore. is a retired Air Force and commercial airlines pilot. He purchased a beautifully restored World War II biplane and offers the magical experience of “Open Cockpit” flying over the cliffs, beaches and lighthouses of the spectacular Oregon coast. Sam’s goal is to share this experience with as many people as possible
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About the Author
Mussa Msemakweli is a technology entrepreneur, Book writer and digital marketing expert. He is currently C E O at the Africa shared . His work has been featured in a number of publications, including the Maisha halisi Magazine and on Culture trip. If you have a good time follow me on facebook and instagram or leave a comment, Thanks.
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