Entrepreneurship is the leading career choice today. As a matter of fact, the freedom of starting your own business is one of the trendiest ways to make money. While growing a small business sounds like a great idea, there are basic business principles that every small business owner will need to know to grow a small business successfully.
Here’s the thing! The likelihood of a small business actually thriving in today’s market is decreasing each year a business is in operation. According to Entreprenuer.com, 50% of businesses will fail within the first 5 years. Only 30% of businesses will survive to see the 10 year mark.
Before you get discouraged, hear me out! What if I told you that scaling your small business to 6-figures is actually easy? We can help you grow your business with our virtual workshops and coaching. Growing your business to 7-figures is not all that scary. It is actually just a few more zero’s. There are basic business principles that are necessary for a business to survive, thrive and scale. If you optimize the following principles right away, you will set your business up for great success.
Six Steps To Launch and Grow Your Small Business! Listen to the episode here.
Leadership Principles Necessary to Grow a Small Business
Amateur business owners often think their idea, product or service will sell itself. It is not until they hit the market with a great idea that they quickly realize their business needs a plan. Every business should have a clear mission, vision and core values. Most entrepreneurs will skip this part, but it may be the one step that clearly communicates to your buyers why they need to buy from you. With that said, it is worth the time to develop a clear mission and vision statement for your business. Do you need help getting your business on a mission and operating on purpose with purpose? Writing an effective executive business summary sounds boring but may be the most critical piece of content you create for your business.
What is a mission statement? A mission statement clearly identifies what you do, how you do it and what the value or transformation your customers will experience from through your product or service. This statement is concise and to the point, Everyone in your organization should be able to memorize and repeat this statement. Your company’s vision statement should clearly communicate how your business will make an impact in the long run.
Also, be sure to identify your core values so you can have a set of morals and standards which you filter your business through. Core values allow a business to stay true to their mission and vision. They also empower growth in the people of the organization as well as the company as a whole.
Marketing Matters Most
Marketing is the process for communicating a value for a product or service to potential buyers. It is the process that is used to gain interest in your company’s products or services. It is impossible to scale a business without marketing and yet, so many businesses fail to make the time to implement marketing strategies.
The truth is, marketing is very time consuming and requires a special set of skills. Never mind the fact that marketing trends are constantly evolving and the average business owner struggles to find time to keep up with the latest trends in marketing. But, marketing is non-negotiable. According to Grant Cardone, Author of the 10x Rule, “Marketing is the holy grail of business.”
I couldn’t agree more. When a business fails to implement modern marketing strategies they spin their wheels trying to figure out how to make money. They literally step over dollars while chasing pennies. There are many different marketing strategies that exist.
This list is not exhaustive, however, at the bare minimum, every business should be using these marketing platforms to effectively reach their audience. If you are not sure where to start with your marketing plan, we hope to simplify the process for you with our Marketing and Sales Bootcamp!
Sales Strategy – The Art of the Ask
So you have a great product or service but you hate to sell. To sell your product or service you have to ask for money. Most people hate asking for money. If you own a small business, or if you are thinking about starting a business, you are now a sales person and a marketing specialist. You do not have to be good at sales to own a business. You do need to offer a product or a service that solves your customers problems. When you make your customers’ lives better with your product or services, asking for the sale becomes that much easier.
Ultimately, having a system to close the sale is the only way a business can stay open. Every entrepreneur will need the tools to create a sales process that works and closes the deal. It is important to remember that the customer has a need and your service or product is the solution they are looking for. If you do not clearly ask for the sale and make it easy for consumers to pay you, you risk losing the sale. This includes online. Make sure your website has a “Buy NOW” button or a direct call to action, so your customers can do business with you and to give you their money. Be sure to check out this FREE online sales script tool created by Business Made Simple. Using this tool will take the pain out of selling and asking for money will become fun.
Do you hate selling? Take the course, The Customer is the Hero, and start converting your shoppers into buyers.
Making Sense of Overhead and Operations to Grow a Small Business
Every business, large or small, for profit or non-profit will have overhead expenses that the business will need to pay in order to keep the business running smoothly. It is important to keep your overhead and operational expenses effective and light. Here is a list of operational expenses that most businesses will incur and should consider in their budget:
- Office Rental
- Equipment
- Office and Operational Supplies
- Marketing and Advertising
- Payroll
- Insurance: Business or Health
- Taxes
As a business grows, the expenses will also increase. Businesses should always watch their expenses and keep overhead costs low. It is a fine balance between lowering overhead and operational costs without sacrificing the quality of the customer experience, product or services.
Creating a Profitable Product or Service
Your product or service must be profitable and in-demand. Whether you have a product or a service based offer, you have overhead and operational costs associated that could be costing you money rather than creating profitability. Simply said, not every great product is a profitable product. We recommend completing an audit of your products and services by answer the following questions:
- Describe the product or service?
- How much revenue have you generated on this product or service this year?
- How much did it cost you to create this product or service? Include payroll costs.
- What kind of resources or supplies are required to maintain this product or service?
After you answer these questions about your product or service, decide if the product or service is profitable. If not, you may need to reevaluate whether or not this is a product or service you should continue selling. Business owners offering a product or service that is in high demand and not profitable should look for ways to innovate and reduce overhead costs, or increase the price of the products or services to meet the demands of production.
Cash Flow is the Fuel to Running a Successful Small Business
As a small business grows, managing the finances can become complicated. Your cash flow is the fuel your business requires to run. Without fuel you cannot run a business successfully. Sadly this is the most neglected area of small businesses. It also one of the main reasons businesses fail. They simply run out of cash. We are raving fans of Profit First by Mike Michalowicz as well as the Cash Flow System by Donald Miller, Owner of Business Made Simple. If you run a small business you need to know how to make sure you never run out of cash.
How is your business doing? When you take the FREE business assessment here, you will be encouraged to observe the areas of your business that are going really well. You will also discover some areas of your small business that need improvement. At Business Builders we offer leadership training, courses and business coaching to help you grow your small business. Your business should not be a burden. From your leadership, marketing, sales, overhead, operations, product/service development, and cash flow analysis, we will help you grow a business that brings you peace.
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