5 Ways to Boost Your Small Business Success

Facebook

Twitter

Google

Guest Article

Successfully running a small business is an art. You are a visionary, a manager, a finance operator and a marketer. So often I hear about people who come up with a great idea, but don’t know how to put it in action. They may be nervous to take the leap of faith, or afraid they don’t have the skills needed to run a business of their own.

I started a small importing business in 1978, and grew it to a respectful company with a workforce of 30 people. Every day was a challenge and a learning experience. Now, I teach others the inner-workings of small business development and the art of strategic planning for profit and process improvement. Below are a few tips to get you started towards small business success:

Rule #1 – Create a 5 Year Strategic Business Plan

Of all the lessons I learned as a small business owner, perhaps the most important was in strategic planning and profit analysis. A strategic plan will help you take a step back from the excitement of your business aspirations and evaluate if there is a real market for what you want to do.

Your plan should address feasibility, operations, projected revenue, growth, profits and losses. You should also define the major goals you hope to accomplish, as well as policies, procedures and resource allocationstrategies. The five-year benchmark is just enough time to allow you to address short-term goals effectively, while thinking ahead to your longer term aspirations.

Rule #2 – Develop Your Business Philosophy

The most successful businesses – large or small – begin with a strong business philosophy. Take Amazon for example. When founder Jeff Bezos started the company, he promised to create “Earth’s most customer-centric company,” offering customers the opportunity to find and discover anything they might want to buy online at the lowest possible prices.

That simple mission statement has made a magnificent impact on the way we purchase goods online. Start by thinking about why you are starting a business in the first place. What services are you hoping to provide? What does your company stand for? Write it down, edit it, and refine again. Be true to yourself, and allow your business philosophy to drive all decisions from Day 1

Rule #3 – Conduct a SWOT Analysis on Yourself

We often do SWOT analyses for our business, but I recommend all business owners conduct a self-analysis of their own strengths and skills. Perhaps you are a master chef thinking of opening a bakery, but you have never managed anyone under you. Your strengths may be your skills in the kitchen, but a threat could potentially be your inability to effectively manage a team.

Understanding your own strengths, weaknesses, opportunities and threats will translate well in defining and projecting challenging areas.

Rule #4 – Evaluate Your Financial Resources and Resource Allocation

To get a grasp on your capitalization needs, sharpen your pencil and do the math on your business. What will it take to open your doors? Often you can seek the help of a financial advisor, but you should first start with your own net worth and assets, so you have a clear picture of how much financial risk you are willing to invest. If you are approaching investors, you must be able to competently articulate your vision and strategic plan. Ask yourself “why they would they benefit from being a partner?” That is what they will be asking themselves.

Strategic planning becomes critical in the area of human resources as well, in order to project for growth, sustainability and profitability. How many people will you need for day-to-day operations, and what is your plan for growth? Remember that your employees are depending on you for their quality of life and livelihood. The better you plan, the greater assurance you will have for long-term success.

Rule #5 – Learn How to be a Manager

Being a good small business manager is a labor of love. It requires a strong personal attitude and mindset, as well as a set of very distinct skills. You must be able to communicate the company’s vision and inspire others, while fearlessly making timely, tough decisions.

This is an important competency we spend quite a bit of time teaching through the Small Business Administration degree in Northern Arizona University’s Personalized Learning online program. Management skills take time to learn and practice, but are critical to being an effective small business owner.

I hope these tips are helpful as you begin your own small business adventure. Best of luck!

About the Author: Dora Donovan is Lead Business Faculty of Northern Arizona University’s Personalized Learning program’s Small Business Administration degree. Dora started her own business and was a development consultant prior to NAU.