Have you ever wondered what it is that makes a small business successful? In this article we have listed the criteria that all successful small businesses need. Most are not difficult, but can take some time to master.
Copyright (c) 2008 Kaye Dennan
You will see some small businesses that thrive no matter what the economic climate is. They just seem to have the know how. Essentially, though, there are some very important criteria that makes a small business successful.
Here are 14 tips that are important for a successful business:
- Making sure you are selling a product or service that is in demand
- Have more than enough initial capital to set up
- Having sufficient back up capital to fund the business and your personal expenses til you make a profit
- Good legal advice regarding your lease or any legal commitment you have to make
- Keeping good financial records, with strict budgets
- Being known as a source of information in your niche
- Well trained staff
- Giving above average customer service
- At all times, being able to supply the service your customer desires, or being able to refer them on
- Being a source of information (know your product)
- Choosing the right location for your business
- A positive attitude and a strong desire to succeed
- Marketing your business well (a must for success), which includes a marketing plan and an organised marketing campaign
Let me say at this point, that if you are considering going into business and have established that there are skills you need to learn, then take the time before outlaying your capital, to obtain these skills. As soon as you start operating your business, you will be concentrating on the sales, and getting your business running smoothly. Learning new skills will be the last thing on your mind.
KEEPING GOOD RECORDS In a lot of cases, even financially minded people, hate keeping their own records. If a person is in business for themselves, they are so focused on being successful, that the thought of sitting down and doing a few hours bookwork is the last thing on their mind.
Unfortunately, more people fail in business because of bad financial records and lack of capital, than for any other reason. If you do not know what is going in and out of your business, how do you know if you are making a profit.
Cash businesses are the worst. You see all this money sitting there, which is exciting, but it is so easy not to remember the invoice file that is filling up with bills to be paid. With a cash business it becomes more critical to keep tight control of your cash and your records of income and expenditure. It is so easy to say: "Oh, I'll just grab a few dollars and go out for dinner." Trouble is, if you are tired and busy, you might just start doing that too many nights a week!
A lot of small business people employ a bookkeeper because they just don't keep up with their own records. Paid by the hour, it is well worthwhile. Note, that I am talking about a bookkeeper, not an accountant at this stage.
At the end of each financial year, get your returns done early by an accountant, and then you know where you stand for the next year.
PERSONALITY DOES NOT KEEP YOU IN BUSINESS - KNOWLEDGE DOES You may have heard the expression, 'knowledge is power'. It is so true.
Personality may win you some extra business, but if you do not have the knowledge to back it up, sadly, your customers will leave.
We all like doing business with friendly people, but at the end of the day, we do expect a good return for our dollar spent. Customers can quite quickly turn cranky if they feel they are being 'ripped off'.
To make sure that your small business is going to be successful, address all these items on the list. Each and every one has its own merit, and its own impact on the success of a small business.
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