5 Important Things to Keep in Mind When Starting a Small Business

Starting a small business takes a business owner on an exciting yet arduous journey. A small business can be defined in terms of size, revenue, or a mix of both. A company is classified under the small and midsize business (SMB) category if it has fewer than 1,500 employees. In terms of revenue, a business falls under the SMB category when its maximum income does not exceed $38.5 million yearly. 

Small businesses make up 99.7 percent of all companies in the US. SMB’s may be small in size, but the income they generate altogether exceeds those of their multinational counterparts. When starting a small business, you have to consider a couple of things to make your small business a big success. 

Determine What Type of Business You Want 

Businesses are more likely to succeed when they are backed with passion. Before venturing into any small business, make sure you have a clear idea of what you want. More importantly, it would be best to define what you want your business to achieve in the long run. 

Some business owners fail to realize that this is the most crucial step in planning a successful business. The financial gains are a great reward in a successful business venture, but the hype soon dies down if you don’t have your heart in the game. Some profitable small business ideas include: 

  • Foodservice 
  • Auto repairs
  • Vacation rentals 
  • IT support 
  • Graphic design 
  • Electronics repair 
  • Professional services 

Know Your Numbers 

Business ventures are risky and will involve a considerable amount of capital. Before making an initial investment, take account of all your assets and liabilities. Do you have enough liquid assets to cover capital investments? Do you need to take out a loan? Knowing your numbers and where you are financially can help you make better decisions.

It is also wise to take out a line of credit early on to have funds for when you have significant business expenditures. By considering how much you actually have versus how much you will need, you will know what steps to take to meet your financial goals. 

Hire The Right People 

It goes without saying that employees are the company’s best assets. Hiring the right people for the job means that you can rest easy knowing that they will take care of the business for you. 

With the right staff, you don’t have to micromanage your business. You can focus on what matters to you as a business owner- growing your business. Just like you take steps to know your customer, you also have to be thorough in knowing your staff. 

To ensure that you have the best people on your team, you can ask your hiring team to conduct a series of tests and interviews to determine whether an applicant is fit for the job. Doing an interview yourself can also help you get to know your employees better and will be a good measure to see if the position they are applying for is suited for their personality and qualifications. 

Also Read: The Best HR Software for Small Businesses

KYC: Know Your Customer 

A good business knows how to connect with its customers on a personal level. To leverage the consumer market to grow your business, you need to invest time and effort to know your customer. 

Banks and financial institutions use the KYC metrics to determine a client’s financial profile and risk tolerance. As a small business owner, you can employ a similar approach in getting to know your customer. 

Knowing what your customers need and determining what you can do to meet that need is crucial for business growth. You can get to know your customer by employing the following methods: 

  • Ask. Be proactive in managing your business and taking steps to meet customer needs. When your customers know that you are personally involved in the process, they are more likely to trust you and your business. 
  • Surveys. If you don’t have the time to engage your customers personally, you can ask your team to conduct a random survey on customer experience and what additional services they need. 
  • Customer reviews. Getting genuine reviews from customers gives you a better understanding of their personal customer experience. 
  • Use tools and professional services. For an additional cost, you can hire a third-party vendor to draft an analyst report. This is an in-depth report based on actual customer data. 

Have a Mentor 

A mentor is someone who has more experience than you in the field of business. Mentoring can be informal- through friends or family, or it can be a formal business relationship with someone who offers professional mentoring services. 

Having a mentor guide you can make the process easier to follow and can give you the moral support that you need. A mentor can impart to you knowledge that only a veteran with years of experience can provide. 

Mentors are also a great way to build your network, which is crucial for developing a small business.

With the proper planning and implementation, you can make your small business thrive and flourish in the sea of competition. Starting a small business is no small feat, and with these useful tips to keep in mind, you can be confident in starting your business venture. 

Susan Ranford is an expert on career coaching. business advice. and workplace rights. She has written for New York Jobs. IAmWire. and ZipJob. In her blogging and writing. she seeks to shed light on issues related to employment. business. and finance to help others understand different industries and find the right job fit for them – Strategics360.com/

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