Did you know that there are 23 million small businesses in America today, and these businesses account for about 55 percent of all sales in the US? Owning and running a business can be rewarding, but daunting at the same time, especially for those new to it. There are several steps you can take, however, in order to ensure that your business not only stays around, but remains profitable. Here are our three top tips for small business owners.
1. Know basic finance
This sounds obvious, right? Surprisingly, however, the biggest source of failure among small businesses is financial incompetence, accounting for 46 percent of all tanking businesses. This includes entrepreneurs who embark on running a business without paying taxes, price by emotion rather than market value, live too high, and do not practice good record keeping. How can you solve this issue? Our small business tips would be to take basic finance courses, be practical with your spending, and hire a tax assistant.
2. Your products will not sell themselves
Have you ever heard the phrase Build It, and They Will Come? I advise striking this adage from any part of your tips for small business owners right away. To an extent, yes, your products and services should advertise themselves by their quality. However, it is a very misleading quote in the sense that a business plan that will get you through many years involves constant communication with your potential consumers, usually in the form of ads. Marketing tips for small business owners mean investing in social media marketing, emailing, and special deals to get people in the door. If you operate online, which in this day and age you should, this means using SEO and PPC advertising to increase your visibility.
3. Be ready to adjust
Although it is hard to identify any one factor as being the source of success for small business owners, adaptability is always going to be a huge asset in this field. Be ready to scrap what felt like your best idea, if, when push comes to shove, consumers do not respond to it. Small business tips and advice mean being willing to retool your approach and business strategy. Take advice from experts, but be wary of the words of those who are not your consumers. One of the top three management mistakes for starting businesses is taking advice from family and friends. We are all guilty of this from time to time, but as a business plan tip, keep in mind that at the end of the day, you depend on your business for livelihood, and they do not.