Most business owners will tell you that beginning a business is both one of the most rewarding and most challenging ways to earn a living. Being a successful business owner demand a large amount of dedication and hard work, but also normally depends on personal qualities and business practices that are basic features of successful entrepreneurs. These features lie as much in a business’s founding principles as in its day-to-day operations and precept each decision the entrepreneur makes. By adopting these guidelines, you will have the higher chances to find a successful business or getting your current business back on track.
Finding the Right Mindset
Do what you know. That is, you should begin a business that concentrates on what you have experience in. That experience can be either previous work experience or a personal hobby that you want to turn into a career. Even if a business idea appears highly beneficial in theory, don’t begin that business until your heart is not in it.
For e.g., assume you have experience in making coffee as a barista or waiter and want to turn your experience into a small business. You would already know about the industry and be able to apply not only your knowledge, but also your passion to your work.
Start with a clear purpose. While the financial advantages of business ownership can be high, most successful business owners don’t begin with money in mind. To get your business off the ground, you’ll require a clear purpose. This purpose should be something more intangible as compared to money, like giving back to your community by generating jobs, solving an issue that you see in your day to day life, or continuing a passion. This doesn’t mean that you shouldn’t also aim for profitability, just that your basic objective should be the accomplishment of a greater purpose.
- For our coffee shop example, your purpose would be serving the perfect cup of coffee to each customer. Rather, it could be to build a community in your coffee shop where people can meet and spend time with their friends.
Find a primary step instead of a destination. You should always begin with a business model that can be up and running fast on a low budget. Some small businesses start with ambitious goals that will need a large amount of money and investors. Still, successful businesses will have a model that can be employed on a smaller scale. This convinces the potential investors that your idea is a valid way of earning money, and increases your chances of ever getting investment money.
- For example, assume that, you want to start a huge operation that sources, imports, roasts, and packages its own coffee beans that are then either served or sold to customers in its coffee shops. Instead of, looking for huge contributions from investors to buy all of this equipment, you should begin with a small coffee shop first, then maybe try sourcing and importing beans, and work up from there to make a brand.
Create a supportive network. One of the most significant parts of successful business ownership is getting over your own ego and looking for help. Your important sources of advice are your group of business associates and other professionals that share your goals. Keep educated and successful people around you and feed off of their ideas and enthusiasm.
- Also look for basic small business tips online; the web is an information goldmine. Just be confident your information is from a trustworthy source.
Find a mentor. Here, a good mentor is someone who has already run or is running a successful business of their own. Mentor can be a family member or a family friend that has been successful in business. This mentor can support you with anything from knowing how to handle your employees to correctly file your taxes. Because they have a direct experience, they’re capable to help you more personally as compared to any other source could.
- While your mentor doesn’t have founded the same kind of business you are beginning, it would help. For instance, another coffee shop founder would be the best information source in our coffee shop, but a restaurateur could also be of meaningful help.
Running Your Business Efficiently
Concentrate only on your primary things at first. If any business opportunity comes in your way, avoid being caught up in. It’s better to be perfect at one thing as compared to mediocre at five. Concentrating on one thing will permit you to commit all of your resources there and be more effective in that endeavor.
Keep detailed records. To be successful, you should have a habit of recording each and every revenue and expense that your company has. If you know exactly from where your money is coming in and where it’s going, you can recognize the financial difficulties before they come into being. Additionally, doing this will provide you a good idea of where exactly you can decrease your expenses or increases to revenues.
Control expenses as much as possible. While this may appear obvious, just try to give a thought of those areas where you could produce the same effect by spending less money. Consider employing old equipment, finding cheaper forms of advertising (for instance, fliers instead of newspaper ads), or negotiating better payment terms with customers or suppliers to save a few dollars here and there. Try to keep very low spending habits and only spent money when and where it is necessary.
Consider supply chain efficiency. Your costs, and thus your profits, rely on a successful supply chain organization. By making good relationships with your suppliers, organizing deliveries, and usually supplying customers with timely service, you can enhance your reputation and profitability. Successful supply chain management can also support you remove any part of your business with wasted resources i.e. raw materials or labor.
Finding strategic partners. Much like a good mentor, a strategic partner can give you the better ideas you require to grow your business. Foster strategic partnerships by reaching out to businesses you think could help yours, whether they are technology providers, suppliers or complementary businesses. A good relationship with another company can give you both free advertising, reduce your costs of doing business, or permit you to extend to new markets, based on the partners you select.
Be responsible when it comes to debt. It’s very significant that you genuinely assess your ability to pay back any debt that you take on. While beginning and running a business is always risky, try to decrease your liabilities by only taking out as much as you really need. And when you take debt, be clear to structure your cash flows such that you are paying it off as fast as possible. Prioritize debt repayment before doing anything else.
Developing Your Business
Perfect your business pitch. Have a minimum 30-second speech ready that describes your business as efficiently and briefly as possible, having information about your aim, your products/service, and your goals. Having a practiced pitch that you can go to anyone can help you in situations where you’re going to sell something to a customer as well as it can when you’re attempting to bring an investor on board. If you can’t define your business in this short time period, your business plan needs refining.
- For your coffee shop, you’d want to define what you do (sell coffee), your services (the drinks you provide), what is your specialty (whether the coffee you serve is rare or locally-roasted), and what you plan to do next (expand your business to another location, new products, etc.).
Be reputed for good service. If you earn positive reputation, it is like free advertising; your customers will tell about your business to friends and come back again and again. Treat each and every sale as a success or your business failure depends on it. This also means that you should be consistent with each action your business takes and each interaction with customers.
Watch your competitor ideas closely. You should always aware about your competitor’s ideas, particularly when you’re opening a new business. Chances are, they’re doing something right. If you can know what that is, you can use it in your own business.
When you’re starting out, one of the best ways to do this is to look for your competitors’ pricing approaches. In our coffee shop example, it would be right to price your coffee similar to competitors instead of to do experiment with different prices on your own.
Always look for growth opportunities. Once your business is established, you should always think about the places where you can expand. Whether it is moving to a larger storefront, opening a new location or increasing manufacturing space will depend on your business and goals.
Diversify your income streams. Another way to increase your business value is by looking at other areas where you can earn money. Considering you’ve already set up your primary business, look around and see where you could provide a different product or service. Maybe your customers usually visit your store for one item and then at the same time go to another store for another item. Find out what that other item is and provide it.
- Some easy diversification options for your coffee shop would be providing sandwiches, pastries, or books for purchase.
- You can suffer loss if you have individually invested in your company.