It seems everyone has an idea for their own business these days. Sadly, generating those perfect small business ideas is only part of the battle. In addition to an idea, you need an understanding of the field you’re getting into, enough money to invest in your company long-term, and much, much more. In this post, we’ll reveal four valuable tips which could make or break your small business’ success.
Research, Research, Research!
To put it simply, know what you’re getting into. Understand your competitive set and what they’re producing. Is your product valuable enough to the target customer to merit a switch? Is your approach or end-result revolutionary? Is your point-of-difference compelling and clearly articulated? Bear in mind, name recognition carries significant weight, and other companies in your field may already have that. You won’t have the luxury of an “Apple” badge, or whoever the big shot is in your area.
Your product needs to be viewed as valuable. To be worth it, you need to know what else is out there so you’ll have a fair comparison. Above all else, be honest with yourself about your product’s desirability vs. your competitor’s products; it could save you significant stress and heartache!
Ensure You Are Properly Funded
You can give your business a significant boost by ensuring you have plenty of startup cash. Some companies, such as Uber, were well-funded from the get-go. They raised nearly $1.5M in capital before beta testing. After beta testing, they raised an additional $44.5M. After launching in a handful of cities, they raised another $1.2B. Today, the company is worth an estimated $62.5B.
In short, the more money you can raise, the less headaches you’ll have building your small business.
Monitor Your Business Expenses!
According to the Corporation for Enterprise Development, almost 37 percent of experienced business owners report falling short of the cash required to meet their business expenses. Sometimes, they don’t have the cash flow to meet building expenses or employee payroll.
You’d do well to keep an eye on exactly how much money you’re spending, and also consider less obvious costs. For instance, that beautiful, modern, 5-story glass building looks sharp — but costs a ton of money to build/buy, and is less energy efficient than most other types of architecture (leading to higher electric bills). You can view more examples of hidden start-up costs here. Additionally, choose employees who are well-trained in their current field, and who are able and willing to learn new skills. That sort of versatility across a team may enable you to avoid hiring additional employees, thereby slashing payroll costs.
Choose Your Partner(s) Wisely
We sometimes observe two partners with very different skill sets clashing over vision. Dueling business partners serve only to drive a wedge into the company. Perhaps they’re feuding about goals, or strategy, or finances — it could be any number of reasons. It is critical to address this conflict immediately and forge complete alignment for strategy and objectives. Choose a partner who is intelligent and driven, but also open-minded and visionary.
Time Magazine recommends the following 5 steps to choosing your partner:
- Discuss your goals thoroughly
- Do your due diligence on your partner
- Do you trust your partner the way you would a spouse?
- Do you genuinely like your partner?
- Can you handle conflicts successfully?:
So, there you have it: 4 valuable tips to make your small business ideas successful. We know how to help small businesses scale up to hyper growth, if you’d like a free consultation please let us know! You can visit our website to learn more about our process and our services.