Small business for dummies – top 25 tips
Running a small business requires dedication and constant angled growth plans. It is a challenge that if not approached correctly can really become a headache for any entrepreneur. The key is to therefore stay ahead of the curve by having a checklist that will keep your focus in line. Here are top 25 tips to run small businesses for dummies.
Address the excuses
If you don’t do this, you will always fail. Excuses and fears of failing with the first try are the factors you should always address when running a small business. Becoming an entrepreneur is a difficult task as Mark Cuban says, “An entrepreneur is the only person willing to work 16-hour days to avoid working 8-hour days”. Being your own boss requires dedication and this can only be captured through addressing the excuses which will allow you to gain some traction and grow as an entrepreneur.
Determine viability
It is very important to determine viability of the business and this can be done through consulting firms like ppchire.com where you will get comprehensive reports on the competence of the business.
Always have a proof of concept
Never go into mass production without proof of concept. A proof of concept is what will give you the drive to adjust your product or service as well as start on a strategy that will propel your sales.
Have all licenses and patents
Apply for the licenses and patents you may need to make your business formidable. Just like Kevin O’Leary says, “Without licenses and patents you will be crushed by the big players like the cockroach you are”.
Be creative
The secret is to always create a better mousetrap and have people pay to use the same. It is imperative that you find the delicate balance that will allow you to have a business that pulls clients as well as generate revenue in spades.
Have something proprietary
Build your business around something proprietary. It is crucial that your business is founded on a creation that can be patented to give you the chance to have the best margins. If this is not captured, you can easily be blown out of the water by bigger corporations.
Listen to the market
When starting a small business, your target market is your lifeline. The way your customers respond is what should inform your strategies and overall approach when it comes to your business.
Never go directly against large players
The key is to find what works for you and maximize on the same without going directly against the big players. The “industry whales” can easily vanquish you if you go against them since they have huge budgets, personnel and tons of talent at their disposal.
Have tunnel vision
When starting out on your small business, always have a particular target in mind and concentrate on the same. This is what will allow you to grow at a rate you can sustain over time. you can choose to get coaching to help you with the same and this is why platforms like bitgale.com exist.
Avoid investors at an early stage
Always careful with partnerships and investors that will take a piece of your business through an equity share. Giving away a piece of your business at an early stages sets you up for future difficulties since you will ultimately need funding and equity remains the best bargaining chip.
Absorb constructive criticism
Most entrepreneurs always find it hard to absorb criticism but it should be noted that constructive criticism is an asset as it is what will allow you to grow and negotiate the difficult moments in management.
Be a solution
With small businesses, your aim should be to position yourself as a solution. The goal is to identify the gap and be a solution that clients will find effective and worthy.
Always know your numbers
Whether it be overhead, business worth, cost of operation, profit margins, gross revenue, net profit or the break-even point; you have to always know your numbers and have them at your fingertips.
Have a social media presence
Create social media profiles that will drive engagement and grow your business to the next level. Target Facebook, Twitter, Instagram, Snapchat, LinkedIn among other profiles to propel your business.
Ensure accurate bookkeeping
It is financial suicide to imagine that just because the business is small you can handle your bookkeeping in a casual manner. It is crucial that your bookkeeping is handled professionally to give you a bearing of where the business is headed.
Hire personnel
A one-person band can never be successful and this begs the need for hiring personnel to aid with the daily operations which will allow you focus on the greater picture. With personnel in play you will be able to delegate duties and assign responsibilities.
Stay away from debt
Debt, for a small business, is a very risky obligation since it means you will be taking money away from the business to service the debt at an early stage which is a factor that stifles growth.
Always have a marketing strategy
A marketing strategy is what will take you in-front of your target market. There are competent firms like runrex.com that have handled marketing for a long time and they are the professionals you have to take onboard.
Have a budget
Always aim at cutting costs and maximizing revenue. The key is to measure ROI and get done with the ineffective contributors that make you stray from staying financially disciplined.
Get a mentor
A mentor walks you through the steps and expectations that you have to place on yourself. A mentor gives you tough love as well as guide your growth.
Leverage business data
Sales, productivity, logistics, marketing and other valuable data that the company collects should be leveraged and analyzed to enable better management and decision-making.
Always know your customer acquisition costs
Without your customer acquisition data, you may be running losses while imagining you are doing business. Always know your customer acquisition costs and how they impact your business model.
Automate to free up time
All operations that can be automated must take the said route to free up time and allow you to focus on growing the business as opposed to just running it.
Set targets and projections
What is a business without a goal and realistic projections? Well, the answer is that it is a failed endeavor. You have to set realistic targets and the projections that are sure to streamline your business.
Utilize technology
Find a way to incorporate technology to aid you in the growth of the business. A small business can massively benefit from technology as exponential growth will be achieved.