What are the primary secrets of small business success?
I am sure those who start off with a business are planning to ask this question at some forum or the other.
While some would say small business success can only be achieved through the owner’s discipline or observing financial prudence, there are many others who believe that the secrets are most time hidden in the nature of the business and the overall business model that you follow.
Well, here I am sharing some broad ranging options that I think can help you achieve the same level of success and fulfillment from your business.
However, at the end of this article I am explaining that success is not what you think most of the time.
As a small business owner or as a person who is intending to start a small business, you most probably think that if your business makes some profit, then it is successful.
Although I agree that a business success has a direct relationship with the profit and the money it makes, still you can’t call it successful even if it is profitable.
Therefore, first please read the success factors and secrets of the small businesses, and then learn when you can call a business fully successful.
This is so important if you like to be successful in long term.
There are some important secrets that you have to know before spending any time and money on running a small business:
- Give Wings to Your Passion & Enjoy
- Managing Time
- Decide & Prioritize
- Sharing with the Community
- Invest Wisely
- Handling Expansion & Growth
- Keep a Close Watch on Resources
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Give Wings to Your Passion & Enjoy
After all, one of the greatest small business success secrets is enjoying your job and the long hours involved can often lead to burning out.
That is exactly why you must follow the basic principles of business that is crucial for your success. This includes:
- Separating family from work
- There can’t be any set hour for the job
- Never let the professional failings touch your family life
This ensures that the business challenges never touch upon your family life and you never let the passion for your business leave your side.
Above all, another important secret is that you have to make sure that you love the business you are starting, otherwise it will be a non-stop struggle and torture.
One of the most important factors that make you love your business even more, is the profitability and success.
You have to take one success step every day, week, month or year, otherwise you will hate your small business.
Therefore, make sure that the small business you are starting has such a capacity and you are able to have a new success every now and then.
As the old saying goes, ‘time is money’ and managing your time efficiently is one of the greatest secrets of small business success.
Managing the time is about being able to focus on important issues and looking at not so urgent matters at a relatively later date.
Most popular journals and books will tell you that small business must follow the 3,000/500 rule for effective time management.
You must ensure that you should not spend more than 3,000 hours every year and spend 500 hours every year for participating in community activities and the like.
Even if you have a part-time business, you must follow the 1,000/750 rule.
This is extremely important as this exercise helps you to
- Set aside time for planning activities on each day
- Focus only on the most important matters
- Better delegation of responsibilities to juniors
- Develop more astute focus
Make sure the small business you are running will not be a non-stop rat race.
Or even if it is, it returns the time and money you spend on it, otherwise it is stupid to start such a business, be it large or small.
This is one of the important success secrets of your small business.
Any business, has to return a good profit based on the time and money you spend on.
That is not all. Its profit should be increased steadily for the same amount of time and money you spend on, otherwise I know it as a struggling business, not a successful one.
I will explain on this matter more in this article.
Decide & Prioritize
Time management leads to paving a more definitive path towards your goal, and that is one of the greatest secrets of small business success.
This is important and helps you in deciding and setting your goal.
This is how you can look at significantly increasing sales and thus, increasing your profit.
Ability to set up these specific and well timed targets ensures that you are not just able to attain them but also get rewarded in the process.
Often we have seen writing down these goals can become effective means of achieving them in a more distinct fashion.
Does your small business give you enough freedom to manage your time and have more brilliant goals for different time periods?
If your business has chained and imprisoned you and you can’t do anything more than some regular daily tasks that result in having a constant income, then you are wasting your time because you will have to close the business sooner than later.
Such a business can’t survive for a long time: Do Not Start a Business that Is Not Scalable
Scalability is one of the most important success secrets of your small business if you intend to make money and enjoy your life in long-term.
Sharing with the Community
Business is not just about profits.
Sharing the gains is one of the greatest secrets of small business success.
This is exactly why it becomes important to contribute to your local community.
It does not just make you feel satisfied as an individual, but at the same time, it also harbors strong public relations.
It, no doubt, also creates a very strong rapport amongst the existing clients and the potential customers.
Think about the kind of impact that Bill Gates has on society through his charitable work.
It sure goes a long way in sealing their entrepreneurial success.
According to Robert Kiyosaki, you have to be able to divide your income into 3 parts.
One for saving, one for investment and one for charity.
You have to be concerned, If your business doesn’t make enough money to do this.
If there is any room to expand the business and make more money, then do it.
If not, then you have to think about switching to another business.
The secret is not in giving some money away.
It is in making enough money that give you enough freedom to save, invest and share some money every year.
Among the many secrets of small business success, investment is a cardinal factor.
Do not just look at the basic or the initial investment that you will have to make.
Think about the amount of money you would have to rustle up on a daily basis and the overall impact that would have on your resources.
It is always necessary to account for unscheduled expenses and capital requirements.
As a rule of thumb, it is never wise to buy a business for a sum that’s exceeding the previous year’s sales number.
Another thing that you must be careful about is to not just invest on the basis of good will.
Always ensure that you do your due diligence and is very convinced about the financial prospects of the business.
As I explained above, investment is one of the things that your small business has to enable you to.
You can’t make a fortune through a constant amount of income every year. You have to use some other ways to increase your wealth otherwise you will be in trouble.
Business and economy are not going to do well all the time. Therefore, you have to have some backup for the rainy day.
Just take a look at my Excel compound interest formula calculator and see how a small investment can turn into a huge wealth after a while.
Don’t underestimate the importance of investment.
If your business doesn’t give you enough financial freedom to do some investments once in a while, then you have to make the necessary changes.
The key secret is whether your small business is expendable to make more money to enable you to invest, or not.
Handling Expansion & Growth
When you assess the growth chart of any business, you would notice that while the initial expense and rolling out of business can be achieved somehow, what absolutely takes a lot more strain is handling the growth or expansion.
There are possibilities where it can either go completely awry or can become the catalyst for the downfall of a business.
Therefore, one of the biggest secrets of small business success is managing growth effectively.
While on the one hand growth is always positive, it is very important to handle the transitional aspect of it.
For example, the dynamics of performance and pressure change drastically when you are 10-man company to a time when you become a 1000-personnel company.
One of the simplest ways to deal with it would be to keep the focus on the bigger picture and continue on the path of growth with unrelenting enthusiasm.
Some cardinal principles that you can put to use include:
- Avoid micro-managing
- Start delegating core responsibilities to management staff
- Let your managers and employees make a few mistake to be better poised for growth and take your business to a new level
- Accountability can often be the core catalyst for great performance.
Expansion and growth, or something that we call it scalability is the most important thing in the success of a small or large business.
If a business is not scalable, then you will be in trouble even if it is making money now.
The reason is that if you can’t expand the business and make more money every year, then a new competitor who is better and stronger than you, will appear and your income vanishes in matter of a few months.
You can keep the business up and running only when your income increases every month.
It becomes harder to compete with you when you have such a business.
But a struggling business that makes some small profit every month, is doomed, whether you like it or not.
Now, if you already have a small business, just do a self-assessment and see whether it can be expanded or not.
Some small businesses are not scalable at all.
Keep a Close Watch on Resources
Well, we already explained how unplanned growth can be a major reason for businesses failing.
What you need to understand and is a key factor in any business’ forward movement is the owner’s approach.
At a time when the business is doing good, keep a hawk eye on your resources.
Remember it is never wise to indulge in acts that satisfy your ego like gambling or buying a race car.
While you have full right to enjoy the fruits of your labor, it is never a good idea to let your expenses go out of hand.
Spend only that much which is desirable and does not make you stretch yourself unnecessarily.
This is one more of the small business success secrets.
Do your best to become self-sufficient and independent in most of the resources you have to spend your money on.
Find cheaper resources with a higher quality or the same quality.
Spending less money on the resources may not look like a big deal now.
However, it returns a lot of money and profit in long-term.
Spending less money on the resources and making money through increasing the products and services and having more customers is a very import success secret in any small business.
You would notice that most successful small businesses are not just about the type of business but more importantly the approach in the entire execution of business.
It is crucial that the owners observe absolute discipline in both resource allocation and man management.
Most importantly at no point of time, should they lose focus of the bigger picture and work tirelessly towards that goal.
That perhaps remains one of the biggest secrets of small business success.
However, first let me ask you what do you mean by “success”?
Does it mean making some profit every month?
If your small business makes some profit every month, then will you know it successful?
I don’t know if you already have a small business or you are thinking about starting one.
This is good that you are searching for the success secrets of the small businesses.
At the beginning of this article, I promised to explain about “success”.
Maybe what you think as success is not the real success.
Most small business owners think that having a fixed amount of profit equals success.
When they see the business covers the expenses and leaves some profit, they become happy and think that they have a successful business.
The question is for how long this process can be continued?
Are you going to have the same amount of income every month?
If you keep doing what you have been doing so far, then your business will fail sooner than later
The reason is that it can’t compete with the new business that start working in the same niche.
Your new competitors are more equipped and skillful in using the advanced systems like the Internet.
The world has changed a lot and one day you can’t make money through most of the ways that people have been used to make money for centuries.
Many of the jobs are already dead and there are so many other jobs and businesses that will die very soon.
Therefore, if you are thinking about starting a small business, or you already have one and you are thinking about making it better through following the secrets that can make a small business successful, then you have to think about the facts I explained above.
Start a business that
- It is scalable and its income can be increased every month and year.
- It gives you money and financial freedom that can you can easily have some investments every year and enjoy your life more.
- Also it gives you time freedom, so that you can spend some time for yourself and your family.
- It also gives you even location freedom, so that you can manage the business from anywhere you want.
Is it really possible to start such a business because of the power of the internet. Learn more: