6 Steps to Small Business
Success
Learn How To Build A Successful Home Based Business
1. Start Smart
2. Plan Ahead
3. Set up Systems
4. Seek out
Sales
5. Aim for Growth
6. Leverage Opportunities
1. Start Smart.
Identify a niche. Don't compete to be the
lowest cost provider. Look
for what makes your product or service unique and
adds a special value
for the client and charge for that value. Every business
has many
facets. Start with what you know and like; start a business that
has
meaning to you. Keep in mind that we don't know what the future
holds,
many of the jobs and businesses of tomorrow don't exist today. You
can
create your own success.
Now is the time to dream. To start smart, you should like the idea
of
the business. The way to earn a good income and build wealth is
by
serving clients well, making their life better in some way-it's
more
than filling a need in the marketplace. To succeed you want to test
the
idea to make sure your potential clients like the idea too. Test
your
ideas.
2. Plan Ahead.
People often ask me why bother
with a business plan? Look at the
lottery as an example. You may get lucky
and get the winning ticket,
but the odds are against you when you rely on
random chance. I'm a risk
taker...but not that much, minimize the risk of
going into business and
maximize your potential for success. Take the time to
write a plan of
how you get from point A to point B. A plan gives you a clear
future
focus and increases your chances of success.
The first rule of a start-up is put some of your own money in
the
business. As the owner you must be willing to capitalize the
business.
The second rule is put as little of your own money as possible in
the
business. Prepare your plan and look for funding for your business
from
multiple sources, which can include a business loan or business line
of
credit.
Don't go it alone. Plan ahead now to build your team. Your team
may
include a CPA and an attorney that you work with as needed. Add
a
mentor from your industry and get a SCORE mentor to help you plan
for
success. No one has all the answers. You get more ideas and
information
by building a success, support team that can help you plan
ahead.
3. Set up Systems.
The most basic system every business
should have is a good financial
system. Ask yourself how am I going to
generate enough income to
support myself and my family. Begin here. Put
together a personal
budget, so you know what it costs you to live. Now, you
can move on to
the business budget and sales planning, so you can see how
many sales
you need to break even and make a profit. The start-up expense
plan,
operating budget and your accounting software are vital to
your
success.
4. Seek out Sales.
The daunting question is how do you go about
seeking out your first
sale. Recognize that since you don't have a big ad
budget to be seen by
everyone, you need to target a niche and get connected
in your market
community, be it local, regional or national. You need other
people
selling for you-not employees-goodwill referrals. Get out and talk
to
as many people as you can. Join organizations that would have
clients
for your product or service. Become a visible part of your market,
and
then ask for the sale. You begin the sales process with people that
you
know. Yes, it's okay to start with friends and family as your
first
customers, and then broaden from there.
5. Aim for Growth.
The basic tenant of creating a company is that
you own the company. You
are not just creating a job for yourself. It's less
risk and less
investment to get a job. Building a business is creating a
company that
is more than the job itself. Think about the future. How large
do you
want the company to be in terms of sales, net profit and
employees?
Your answer to each of these questions will influence how you
grow.
There are varying costs and profits associated with growth.
It's
important to make a deliberate choice early about how you want to
grow
your company.
6. Leverage Opportunities.
Good luck. Good fortune. Good
timing. All play a part in business. As a
business owner, be very clear about
your core focus for the business
and how it serves clients. Your core
business is what pays the bills.
Then, as an entrepreneur you are about
opportunity. When you see a
potential opportunity or stroke of luck measure
it against your core
business focus. Good fortune is great, when it matches
your vision for
the business. Always consider if a good opportunity is the
right fit
for your business. If something looks great, but it's not in sync
with
your long-term plan and budget, think carefully before committing
your
company's resources.
