Starting a small business is one of the trendiest ways to make money. As a matter of fact, entrepreneurship is the leading career choice today. Many people are searching for the freedom and flexibility that comes with business ownership. However, launching and growing a small business comes with many unexpected challenges as well. While growing a small business is a great career choice, there are basic business principles that every small business owner will need to know to experience the success desired.
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 growing your small business to 6-figures is totally possible? You do not have time or money to throw away. You need a proven path to a business that works so your business can survive, thrive and scale. If you optimize the following principles right away, you will set your business up for long term growth and 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. These statements provide direction for your business. The mission, vision and CORE values are like a filter for every business decision you will make. With that said, it is worth the time to develop an executive summary 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 offer. This statement is concise and to the point, Everyone in your organization should know and live out this statement through their position.
What Is a Vision Statement?
A vision statement expresses your company’s aspirations, strategic goals and plans for the future; communicating how you will impact your customers life through your products and services. With the future in mind, a vision communicates what the desired outcome for the business or customers is.
What Are CORE Values?
CORE values are set of morals and standards which you live by in your business. The values lived out through a business ultimately reflect the mission and vision of the company. They also empower growth in the leaders and professionals of the company.
Marketing Matters Most
Marketing is the process of educating, informing and communicating about your products, services and industry to current and potential buyers. Small business owners often feel intimidated by marketing practices. 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. 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 channels you can leverage, but here are a few basic channels every small business owner should be to attract their ideal buyers:
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
You have a great product or service that solves a problem but the act of selling, or asking for money is not your thing. To sell your product or service you have to ask 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. When you transform lives with your product or services, asking for the sale becomes that much easier.
Ultimately, having a sales strategy is the only way a business can stay open. Small business owners should be up to date on the latest sales trends and have a process for attracting buyers and closing sales. Keep in mind, 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 the online sales process. Make sure your website has a “Buy NOW” button or a direct call to action, so your customers can easily buy from you. 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.
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. Completing an audit of your products and services to determine whether or not your offer is profitable:
- 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 to cut the product or service from your offer. 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 experiences growth new challenges arise. Managing the finances can become complicated. Cash flow is the fuel that runs a small business but is also the most neglected department, making it the number one reason small businesses fail. They simply run out of cash. If you run a small business you need to know how to make sure you never run out of cash. We are raving fans of Profit First by Mike Michalowicz as well as the Cash Flow Made Simple by Donald Miller, Owner of Business Made Simple.
Are you ready to launch your small business? Maybe you have been struggling to get your small business off the ground. At Jump Start Business Builders we are passionate about helping you achieve your first $100,000 in revenue and dispelling the myth that you are 2-3 years away from getting a paycheck. We are giving you a proven path to growing your six figure business in just 12 weeks!
Start the Business Builders 12-Week Coaching Series with Certified Business Made Simple Coach, Deanna Cotten or download the “6-Steps to Your 6-Figure Business“ and pave the way to your first $100,000 and beyond.
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