Small businesses continue to trend up and for a good reason – nothing quite compares to the challenge and feeling of running your own business. According to the Small Business Administration (SBA), small businesses account for the employment of 58.9 million employees in the US which is around half of the workforce (47.5%). Additionally, small business accounts for two out of three new jobs per year. For most startups of small businesses, it allows owners to pursue a passion with an average measure of happiness rating an 8 out of 10. Still, with pros also come cons. Only half of small businesses survive more than five years. This suggests that the viability of small businesses has something more to do with just the market or product. Here are some tips on how to keep your business running and healthy. Hope you enjoy Cathy’s Tuesday Tip! ~Cathy
Have a Business Model
The business model for your business is the roadmap to success. This allows for owners to put a voice to strategy when starting his or her business. This allows for more clarity when dealing with all aspects of your operation such as marketing and finance. A business model is also great for securing talent and financing. Being able to communicate your business model encourages for potential investors and employees to “take hold” of your product and invest/join. A business model should be updated each year as the market and the business changes for optimal performance.
Know Your Niche
Typically, small businesses do not have the resources to be all things to all people. A small business serves itself best when it knows exactly where it “fits in”. Podcasts are a great example of this. Successful podcasts are not successful because a vast majority of people listens to it, but it is successful because it can get the same core of subscribers to faithfully listen to the latest podcast. As a small business, similarly, it will be important you can find what segment of the market plays to your strategy and serve that niche.
Power to the People….and learning
Small businesses that are successful are highlighted by a cohesive and compatible team. To build a great team a great leader needs to be at the forefront. As a manager of a small business, it is essential to know that you are in service to the people you lead. Having a manager in charge that truly values the human capital proponent goes a long way. Success should also stem from getting to know the team and what hats they wear best within the company. While in many cases everyone will have to wear multiple hats as a small operation, this allows for specialization and gives the business information on what work should be kept in-house vs. outsourced. Learning should always be a constant in a small business. As the business expands so should your knowledge.
I hope you enjoyed Cathy’s Tuesday Tip this week. To view more of Cathy’s Tuesday Tips, visit our blog.