There is no foolproof plan for creating and sustaining a business. There are, however, general guidelines that can ensure that small business owners are on the right track. These eight tips will help business owners make positive progress towards growing a successful firm:
1. Create a business plan. The often clichéd saying goes "A failure to plan is a plan to fail." Expenses and budgets are not exact sciences but planning to allocate resources certainly does provide a running start. The U.S. Small Business Administration advises that a well-written business plan should project 3-5 years in the future, including revenue projections. A business plan lets potential investors and partners know that you are serious and credible, while helping them gauge your potential for success.
2. Identify your target audience and know their wants and needs. It is important when creating a business plan to identify the demographic that you're trying to reach. Whether creating this yourself or hiring a firm to do this, business owners, managers and representatives should be well-aware of their target market. Determining your target market will also allow you to focus your sales and marketing activity on those individuals most likely to purchase your product or service.
3. Determine what your competitive advantage is---and use it competitively. What makes your product or service different? Why should a consumer choose your product or service over others with similar options? Regardless of how innovative or advantageous your product or service is, it's very likely that others have proposed it before---to the same market. Every business should feature a unique aspect that sets it apart from its competitors. Know what makes your firm's product or services unique and invest in that.
4. Don't rush to grow-up. Firms should make an effort to grow at a reasonable pace. Explosive growth in a small time period is impressive but it is not sustainable. Work to secure a loyal, satisfied client base, even if that rate of expansion is not initially exponential. Ironically, businesses that fail do so in the year that the highest sales are reached. Calculate your firm's sustainable growth rate and stick to it. Incremental growth creates loyalty. Work to establish a loyal following at a reasonable pace.
5. Create an identifiable brand and stick to it. No matter the platform, your firm or organization's message should remain consistent. A client viewing your product or service online or in print should easily be able to identify it. The color, font and logo associated with your brand should remain consistent both online and offline. Use sites like LinkedIn and About.com to expand your body of work and online presence. Adaptability is crucial; however, changing your product or service too frequently or too drastically will cause stakeholders and potential interested parties to question your credibility.
6. Don't be afraid to ask for help. A Nigerian proverb says that "A single tree cannot make a forest." Similarly, a single body of intellect does not run a business. No matter how talented you may be, you're likely not the smartest person in the [figurative] room. There are other people with areas of expertise that will be useful. Don't be afraid to share your ideas or consider a partnership to expand your portfolio of knowledge.
7. Use social media--with caution. While social media is a wonderful way to remain connected, remember that not all platforms are created equal. Twitter, Facebook and Instagram are not equivalent forums for all business needs. Some messages are best served with Twitter, while 140 characters is just not enough for certain industries or entities. Determine the platform that allows you to reach your target audience the best and that which allows them to provide valuable feedback. Creating an online presence of active listening--and responding--will allow you to maximize your successes and limit your failures.
8. Know when to say when. Every proposal or idea is not going to work. Failure may not be an option, but sometimes it is the solution. Do you know that some venture capitalists will not invest until a product has failed THREE times? This promises that their resources will be utilized wisely. By the third failure, most preventable--and costly--kinks have been identified and resolved.
Small business owners encounter streams of peaks and valleys and gains and losses. While there is no single plan that guarantees success or predicates failure, these eight tips are general guidelines to help you get started and establish a solid foundation for your personal and professional brands.
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