Do you remember the movie “How to Succeed in Business Without Really Trying”? Where, armed with a “How to…” manual, an ambitious window washer sought to climb the corporate ladder? Unfortunately, this movie premise does not resemble real life. Shocking, right? A movie that bears no similarities to the real struggles of first-time entrepreneurs. Well, luckily for all you out there who dream of one day owning your own small business, the key to small business success comes from three well-known secrets:
Scene from “How to Succeed in Business…”
SECRET #1: A Solid Plan
Just as in any venture, the most important key is a backbone, or in this case, a business plan. This document would explain both the company’s mission and goals in detail. The plan would also describe products/services the company would offer and a plan on how to market them. Most importantly, a business plan provides projections for short and long term profitability. As an entrepreneur, your business plan will act as your bible when it comes to making decisions for your company. A business plan is also vital when seeking external funding. Outside financial institutions and investors will want to review this document thoroughly before investing anything in the business.
SECRET #2: Adequate Funding
In many cases, a business startup will not immediately turnover profit. It can sometimes take months or even years for business to finally break even. The U.S. Small Business Administration reported that insufficient capital is one of the main reasons small businesses fail. Therefore, perhaps one of the most important tasks in pursuing an entrepreneurial endeavor is to secure adequate funding prior to opening the business. One with vast personal resources may even fund the endeavor themselves. Others may qualify for government grants that are allotted for funding private businesses. Others may get investments from private or corporate investors. Even others may obtain a loan from a financial institution or private lender.
SECRET #3: A Stellar Team
Recruiting and sustaining a stellar team is fundamental to small business success. A team means more than a group of employees – it’s any person involved in moving a product/service from production into the hands of a consumer. This could include anyone from product manufacturers, delivery drivers, tax preparers, etc. When going through the hiring process, checking references is key. This will allow business owners to recruit the best team members they can afford.
What are your secrets to small business success? Let us know by leaving a comment below.
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