Advice for small business owners on successfully starting a business

The idea of starting your own business and being your own boss is a  concept that many of us find exciting. According to the Small Business  Administration (SBA), over 600,000 new businesses are started each year  in the United States. The SBA also reports that approximately one-third  of those businesses will fail within the first two years. So as a new  business owner, what can you do to make sure that your business is not  one of those that fails? 

Do have a plan

Make sure that your business has a documented business plan.  This should include a definition of your business, short term and long  term plans for growth, a cash flow projection and most important of all,  a budget. Some businesses start out without a defined budget. These  owners may have a dollar figure in mind of how much it will cost to  start and run a business, but many times, these business owners have not  taken into account all of the costs required. By having this  information documented, the likelihood of not accounting for a business  cost is minimized. 

Do ask for help

Many small business owners think that they need to do  everything themselves in order to save money and minimize costs. This  mindset can leave business owners vulnerable especially in the areas of  accounting and legal or regulatory aspects of the business. By seeking  out professional help in these areas, business owners can eliminate  fines, fees or charges that might result from attempting to do it on  your own. Depending on your business, you may be able to offer your  services to another business owner as a barter for their services to  reduce costs. 

Do the right thing

When starting out, it is necessary to register your business  with all of the applicable federal, state and local government agencies.  These can range from registering for a federal tax number, to a  privilege license for your local city or town. Since these requirements  are dependent on the type of business and the location, it is important  to seek out a professional who is familiar with these requirements in  your local area. While it might be tempting, especially for a one person  business, to forego some of these requirements when starting out, the  risks of fines and additional tax implications in the future outweigh  the benefit. 

Do know what you do

Many new businesses have a tendency to lose their focus when  starting out especially if the business is slow to take off. Business  owners will look for other areas to focus on to try and increase  customers and sales. Don’t fall into this trap. It is more important for  a business to do one thing well instead of doing several things so-so. 

Do make opportunities 

As a small business owner, it is important to take advantage  of every opportunity to create a connection or make an impact on a  potential customer or client. Whether it is at a networking event, a  social event or a chance encounter at the grocery store, have a 30  second story to describe your business ready to go. Your story should be  tailored to the environment and to the recipient. Practice makes  perfect so whether you pitch it to your family or to yourself in a  mirror, the more you do it, the better it sounds. 

Do not make the business your life

While it may seem that you need to be working on your new  business 24/7, for the benefit of yourself and your business, don’t. We  all hear about the importance of a work/life balance for all workers,  but this is even more important for small business owners. As the boss,  we need to take some time away from the business for ourselves to make  sure that we are healthy and well-rested. This time away from the  business can ignite your creative juices while also strengthening  relationships with family and friends. 

Do not follow the herd 

As a new business, it is important to differentiate yourself  from other businesses in the same field. Potential customers or clients  will need a reason to use your services or products. Offering a unique  service or benefit to your customers is a great way to entice potential  customers into becoming actual customers. Loyalty programs for frequent  customers, drop-off or pickup services or recurring customer discounts  are all ideas for setting your company apart from the rest. 

Do not forget customer service 

Providing first rate customer service is another way that you  can set yourself apart from other businesses. It is important to provide  outstanding customer service all the time. This means that even if a  customer is being difficult or has a complaint, handle it with a smile.  Many times our most difficult customer can turn into our best advocate  if the situation is handled correctly. The most important aspect of  providing customer service is to not take any complaint personally. This  can be difficult for a small business owner as we are often times the  face of the company, but by keeping a level head the situation can be  resolved to the satisfaction of both parties. Remember that customers  are the lifeblood of a small business and can make or break your  business. Keep them happy, and they will keep coming back. 

Do not be inflexible 

Another benefit a small business can provide over a larger  business is the ability to be flexible. With a small business, if  something isn’t working you have the ability to make changes as needed  without having to get corporate approval. This can range to overriding a  return policy at a retail store, to modifying a service package based  on customer feedback. 

Do not stop learning

It is important for small businesses to maintain a competitive  edge. Depending on the business, this can mean keeping industry  certifications up to date or staying on top of current trends. So  whether it is a training class, a subscription to an industry  publication or a trip to a convention, designate the time and money to  make sure your company stays up to date and relevant.  

Summary

Owning  and running a business is a dream that has become a reality for many  Americans. While many business owners think that being their own boss is  going to be better than working for someone else, business ownership  has its own set of pitfalls. By following these tips, business owners  should be able to navigate around obstacles and maintain a successful  business for years to come. 

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