Tips for running a Small Business

To build a successful business, you have to be well organised, flexible, and creative, among other characteristics. You should also be prepared to make some personal sacrifices. These basic tips can help you get your business started and keep it growing, whatever idea you plan to launch.

1. Get Organised

To achieve success as a business owner you first have to be well organised. That will help you complete tasks efficiently and stay on top of the many things that need to be done. A simple way to get and stay organised is to create a to-do list each day. As you complete each item, check it off your list. Since some tasks are more important than others, aim to tackle the high-priority ones first.

There are many online resources that can help you get organised but a simple Excel spreadsheet can also meet many of a small business's organisational requirements, especially in the early days.

2. Keep Detailed Records

No matter how busy they are, successful businesses take the time to keep careful accounting records. By doing so, they know where their business stands financially and can often get a better (and earlier) grasp of any potential challenges they might be facing.

Many businesses today keep two sets of records: one physical and another in the cloud. That way, a business owner no longer has to worry about losing crucial data if something unfortunate happens, like a fire, computer virus, or other calamity.

3. Analyse Your Competition

To be successful, you can't afford to ignore your competitors. Take the time to study and learn from them. Larger companies devote significant resources to obtaining this sort of competitive intelligence. No business is too small to do this.

How you go about analysing the competition can depend on the nature of your business. If you're a restaurant or store owner, you may simply be able to dine or shop at a competitor's place of business, ask customers what they like or don't like about it, and gain information that way.

If you're in a field with more limited access to your competitors' inner workings, such as manufacturing or building, try to keep up with the news in relevant trade publications, speak with any customers you share in common, and obtain and scrutinize whatever financial information a competitor makes publicly available.

4. Understand the Risks and Rewards

Another key to being successful is taking calculated risks. Besides contemplating the potential rewards if you succeed, a good question to ask is: "What's the downside if this doesn't work out?" If you can answer that question, you'll know what the worst-case scenario is. If you could live with that scenario and are prepared to take the necessary steps to manage the risk as much as possible, you might want to give it a go. Otherwise, this could be a good time to consider other opportunities.

Understanding risks and rewards includes being smart about the timing of starting a business or launching a new product. For example, certain products or services may be more popular during a particular period of the year. Technological change and fashions also impact what consumers buy and how they behave.

5. Be Creative and Strategic

Always look for ways to improve your business and make it stand out from the competition. Recognise that you don't know everything and be open to new ideas and different approaches. 

Keep an eye out for opportunities to expand your current business or develop related enterprises that will lead to additional revenues and provide the benefit of diversification. The history of Amazon provides a good example. The company started out as an online bookseller and grew into an e-commerce giant, selling just about everything. It has a growing brick-and-mortar presence, as well.

Besides a diversification strategy, you'll need one for market expansion that works best for your business, whether social media campaigns, direct sales outreach or another option. Also, does it make sense to partner with another small business to gain access to their audience? How might you capture an entirely new market share? These are things you should be thinking about even in the early days of your business.

6. Stay Focused on Your Goals

The old saying "Rome wasn't built in a day" applies to building a business as well. Just because you open a business doesn't mean you're going to start making money immediately. It takes time to let people know who you are and what you have to offer, so stay focused on achieving your goals.

Even many small business owners who ultimately achieve success won't see a profit for a few years and will have to rely on borrowed money (if they can get it) or their own savings to support the business until it can become profitable. Fortunately, there are a variety of ways to finance a business. That being said, if the business is not turning a profit after a reasonable period of time, it's worth looking into why that is and whether the business needs to go in another direction.

49.2% The percentage of small businesses that survive at least five years.

7. Provide Great Customer Service

Too many businesses forget the importance of providing great customer service. If you deliver better service for your customers, they'll be more inclined to come to you the next time they need something instead of going to your competition.

High-quality service is one key to obtaining a competitive advantage in the marketplace. Some businesses refer to this as taking a consumer-centric or client-centric approach.

In fact, in today's hyper-competitive business environment, service is often the major differentiating factor between successful and unsuccessful businesses. This is where the saying "undersell and overdeliver" comes in, and savvy business owners are wise to follow it.

8. Be Consistent

Consistency is a key component to success in business. You have to keep doing what is necessary to be successful, day in and day out. This will create long-term positive habits that will help you make money in the long run and create satisfied customers from day one. Customers value consistency, too.

9. Prepare to Make Some Sacrifices

Having your own business often requires putting in more time than if you were working for someone else. That can mean spending less time with family and friends than you wish you could. The adage that there are no weekends and no vacations for business owners can ring true for anyone who's committed to making their business work.

Owning a business isn't for everyone. If, after an honest self-evaluation, you decide you aren't cut out for it, you'll save yourself a lot of grief, and probably a lot of money, by pursuing another career path.