Two Strategies To Be A Stronger Small Business
Small Business. A term for the concept that overlaps startups, self-employment and entrepreneurship.
There are numerous business and economic research on how to compete, grow and succeed as such, but there are two very foundational strategies to bring success to these entities.
And they are built into the term for theses companies.
Small. And Business.
Let’s dissect these two platforms.
Small Business. An opportunity to create a successful and disruptive company by being a savvy operator who plans and promotes a profitable company that acts small and nimbly innovative but sets big goals for success.Tweet
The word “small” has its positive connotations. In a sense, it can mean the ability to be agile, nimble, and change very quickly. By not being a corporate monolith that could tend to move slowly, SMB (small businesses) can react and be proactive to market forces more easily in most cases. It’s a solid advantage to leverage.
Also, small can mean overlooked. When the bigger companies are worried about the market leaders, smaller companies can carve a niche and gain attention, not to mention market share. A great example of this was the small computer business that ran out of two young men’s garage that introduced one of the first PC’s, putting pressure on industry leader IBM to get their PC into the marketplace (which they did 4 years later). What Apple did as a SMB has them now atop as one of the most valued companies in the world over 4 years later.
Another strategy regarding the word “small” is it’s antithesis and probably the most important. If a SMB thinks of themselves as “small” chances are they will stay that way. But by transforming the company’s (and owners’) thinking to “Big” will create a mindset that will unlock more potential of what could happen rather than the smaller mindset that often results in maintaining or growing modestly.
Small can be beneficial in many ways, but to think “Big” and to set goals that are larger than your company will help you to become a more successful endeavor.
According to Wikipedia, here is the definition of “business”:
Business is the activity of making one’s living or making money by producing or buying and selling products (such as goods and services).https://en.wikipedia.org/wiki/Business Simply put, it is “any activity or enterprise entered into for profit.
While an amazing 80% of SMB survive year one, roughly 45-51% of them are still around after 5 years.
For most of the reasons that they fail (not enough capital, growing too fast, poor market planning, and so on), probably the common denominator is that it wasn’t run like a “business”.
Here is a short list of common actions SMB owners fall into that aren’t good “business”:
- Tie personal and company finances together
- Spend all cash flow, setting nothing in reserve
- Not re-investing in their company in the early years
- Not marketing, or poorly
- Not having a plan for the next month, year, years
- No goal setting
- Being emotionally tied and letting pride interfere with objectivity
- Not finding a mentor
All great business owners and leaders make sure they keep separate books, build a margin and plow their funds back into their business in those first few formidable years, plan and set goals, and ask for advice and seek help and input.
From retail establishments to photographers, pub owners to website developers, and building and trades industries, the SMB owners that truly see and treat their fledgling company as a true “business” will adopt the behaviors that will make them more successful and grow as a solid owner and entrepreneur.
Smaller companies can carve a niche and gain attention, not to mention market shareTweet
Small Business. An opportunity to create a successful and disruptive company by being a savvy operator who plans and promotes a profitable company that acts small and nimbly innovative but sets big goals for success.
By adopting these two mindset strategies you will create and environment to achieve better goals than you think.