There are numerous tips out there for small businesses and it can be quite confusing with all of these ideas floating around, most of the time contradicting each other. However, there are some recurring ideas that they all have in common. Small businesses have inherent advantages and disadvantages that you’ll need to recognize. Here is an ultimate guide to help you bolster those advantages and convert those gaps into opportunities:
1. Sort Things Out
In order to be successful in every business, you’ll have to stay organized. That is why large corporations have teams, departments, divisions, and whatnot, it is to keep things in its proper place and promotes collaboration among the different groups. Small businesses must also have that outlook, although you don’t have (or need) a lot of people, the tasks are almost the same, just smaller in scale. You don’t have to be hands-on on everything, learn to delegate but always keep track of all the tasks needed to be done in a day or weeks even. Keeping yourself abreast with every essential item in your business is crucial for your survival and growth.
2. Stay Focused
Diversifying can sometimes be a trap that many entrepreneurs fall into early on. It can be tempting to get away from your niche and be all what your clients want you to be. However, it is important that you focus on your niche a little longer until you’re one of the best in your category. In the services industry, how to start a cleaning business should not stop at setting it up. A good businessman should conduct research, identify strengths and weaknesses, and develop their best practices. If you’re focused on one business, it can be easier to replicate the things that work well to other ventures and you’ll be able to expand relatively faster.
3. Marketing Strategy
Marketing is an essential component in every business. It doesn’t only refer to sales and numbers, rather it is an understanding of how your business can bring value to targeted customers and maximize your efforts into them. Use various online platforms to inform people and promote your brand, customize your approach to speak to different people to match their needs. Focus on keeping customers happy and keep them coming back rather than always looking for new ones. A good marketing strategy will not only help your small business but it can also help your brand as you look to expand your territory. Today, digital marketing is the way to go if you want to make yourself known faster, so make sure you focus on coming up with a strategy using the different online tools to help you get the word out.
4. Study The Competition
Competition in business always benefits the customers and in a way makes everything better. Studying your competition will force you to come up with creative ways to implement them in your own business. Small businesses tend to look at big corporations and say “they have the manpower, that’s why they can afford it” but that defeatist mindset will not help you in your cause. Rather, you should take a look at their practices and determine the principles involved as to why they are doing it. You don’t have to copy the entire practice, rather emulate the strategy and come up with your method to get similar results for yourself.
5. Risk and Rewards
Shrew businessmen won’t get on a deal without understanding all of the risks involved as well as the rewards. The key here is calculated risks, it is knowing what are the possible downside of the action and if the risk is outweighed by the rewards it promises. Knowing these will help you make better decisions at crucial times i.e. timing. One example is the increased need for sanitation and cleaning services brought about by the pandemic of the coronavirus. Great timing and recognition will tell you that even with the increased cost in PPEs and cleaning materials, the market for these services continues to grow and would possibly help you sustain growth for your business.
6. Build A Network
It is common for business owners to feel isolated sometimes, especially if they are solo owners. It is important to connect with different people and build a network to help you get in touch with different people. Having a strong supportive network can help you get through different situations, come up with solutions to problems, and maintain a healthy social life. With the internet, it is now easy for different groups to connect and discuss business solutions over a conference line. Building a network is an investment that will pay its dividends in the future, no business owner becomes successful without the help of like-minded people.
7. Keep Overhead Low
It is important, at this stage, to keep your overhead costs low. It allows you some cushion whenever economic problems arise. You won’t panic because your margin is healthy enough that a cut in the revenue won’t take too much toll. More than ten years ago, one small business owner moved his operation from an office to his home to cut costs. And when the recession hit, they were able to stay afloat because cashflow never went negative and that helped him keep his peace of mind. If you can create a virtual workstation and ditch other costs for more affordable options, it will help you set a stage for further growth and maintain a healthy revenue stream.
8. Don’t Quit Your Day Job – yet
When people see that their small business venture is doing well, they immediately think of quitting their day job. However, it can be a critical mistake if you don’t consider all the factors involved. The founder of Spanx, Sara Blakely, did not quit her job until she had enough knowledge and did everything to make sure her business would become a success. It will take a chunk of your sleeping time but if you’re able to hold out just a little more to study and sort out your business, it will pay off big time. Also, it’s risky to leave a steady paycheck for a business that you haven’t really had enough time to work on.
These practical tips will not make you an overnight success, but it will guide you to where your focus should be. Give yourself time and don’t stop learning from your mistakes and success. You will also learn important lessons along the way that you can share with people who are thinking of success as you are now.