Tips To Being A Successful Small Business

There are a variety of reasons whey small businesses fail. After working with hundreds of small business through the years here are a few that RISE TO THE TOP.

NO MARKETING PLAN

NO MARKETING CAMPAIGNS

NOT TESTING MARKETING EFFORTS

NOT MEASURING MARKETING EFFORTS

Too many business owners look at marketing as an EXPENSE when it's actually one of the best INVESTMENTS you can make for your business!

You can't open the doors of your business and expect customers to find you. I have seen businesses spend tens of thousands of dollars on a new retail location and/or to build a new shinny website and then EXPECT customers to find them. You can have the best website in the world but if no one knows about it or can't find it how will increase sales?

ATTENTION ALL BUSINESS OWNERS!

Marketing is ONLY a Expense if you are doing it incorrectly! Maintain active marketing campaigns and make sure you can MEASURE all of your marketing efforts. Don't just throw money at your marketing and think its going to work itself out. Test your marketing and advertising and measure everything. Large corporations can afford to throw money at marketing they can't measure but most small businesses can't afford this.

Successful businesses only risk a small amount in testing an idea with a high potential return .... e.g. adwords to get traffic to a squeeze page or survey .... then only do they create the product if the test indicates it is profitable else they fail quickly. They only take major risks like renting a shop or hiring staff when they have a proven idea that is cashflowing well.  Successful businesses plough 10% of turnover into building the business and another 10% into personal & professional development of manager & staff.


Most startups fail in year 1 by developing a product before discovering there is a market for it .... and taking large risks like opening a store for low returns (physical goods have a margin of 10-20%) or risking their home for a loan.

Year 2 taxation is the biggest killer of startups because employees are used to spending all their income once they have it.  But when switching to a business taxes are not due till the end of the year. Forgetting to pay themselves first (instead of last) compounds the issue.

Year 3 loss of focus causes problems because too many business owners use a business plan as just a tool to get money from friends, family & fools instead of as a working guide.

Year 4 + the biggest traps include failure to do what only you can do & delegate the rest resulting in burnout.

Business owners are outsiders in society because they have not accepted the social conditioning of working hard for others for 40+ years in the hope of getting a pension of less than half of what was not enough to support your life while working.   So they need a support network from successful business people.

A business plan is needed based on the owner's requirement for funding his desired lifestyle *10 ... to give the minimum target profit level of the business.

The successful people/businesses have different accounts and budgets for asset building 10%, education 10%, contribution 10%, play10%, long term saving (eg for new car) 5%, savings/debt reduction 5%, necessities 50%.  In other words, budget all your expenses, needs, and desires and stick to it.  

Above is not a "Does It All" recipe for business success but should at least give you a few tasty dishes to sic your teeth into.

How To Survive To Success

Long term strategies are key, as well as agility in changing times, markets and economies.

I often recommend the article, "Are you Prepared to Succeed in Business" by Douglas H. Rogers, Jr., Winfield Akeley, Robert Edelson Content at the Biz Info Library.

Here is an extract:

"In today's competitive market, small businesses must deal with new competitors, ever changing markets, price sensitivity, and cash flow issues — flying by the seat of your pants just doesn't work anymore. Do you desire to lead your business to growth and expansion?

Rapidly changing technologies, instantaneous worldwide communications, and strong customer preferences require rethinking of how we manage a business. Technologies that lead to product life cycles of 18 to 36 months, and the necessity to focus on true customer desires affect most businesses either directly or indirectly. In order to meet dynamic changes in business conditions and customer needs, an organization must be agile and responsive to these changes.

The long-term success of a business is dependent on its long-term strategies. It has been said that a company can overcome inefficient use of internal resources if its basic strategy is brilliant, but not likely to get by with the wrong strategies even with excellent production and distribution capabilities.

Past success formulas might not work in the future. Therefore, a company must periodically reexamine its situation as objectively as possible and determine the best course of action for the future in order to meet its goals and objectives."

The article provides further details and case studies in strategic vision and planning by successful firms. It can be downloaded at no charge from the second, vertical, Box Net "References" cube at the link below.

Small Business Resources

The Key Elements For Success Of A Small Business In Overseas Markets

Here's a few things to ensure are addressed if you are intending to expose your Small Business to overseas markets .....



Make sure you are versed in their customs and know the costs of start up. You should already have a business plan but if you don't I strongly suggest getting one. How will you fund the expansion into the new market? What type of entity will you operate as (LLC, Incorporation, Corp, S-corp etc). Find out the international tax rules. What will your sales forecasts be? What about initial costs and operating costs? Who will represent you over seas? All this boils down to is there are market for your business in the Asian markets. When will you be profitable? Who are your competitors? What is your marketing strategy? The answers to these questions and many more will allow you come up with your key strategies as well as contingency planning. Having a great accountant who specializes in international accounting will help tremendously as well. You may seek some legal services as well.



Spearheading a campaign into an overseas market requires an incredible amount of detail and cultural/custom/legal specific knowledge. It would also be highly beneficial to transfer someone from your management team directly ahead of your startup - that way you have a source you can rely on to negotiate on your behalf and ensure everything is prepared smoothly before you invest further ahead. They can also be responsible for sourcing local talent for succession management with an excellent background in your industry.