8 Things Every Small Business Owner Should Know.

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Several challenges associated with running a small business involve not doing the little things right. If you want to get to the top, it’s vital to master the fundamentals. Managing a business provides benefits like financial rewards, freedom, and control. But it also presents several risks, including stress, time management, and economic uncertainties. According to Bloomberg, a whopping 8 out of 10 entrepreneurs who start a business fail within 18 months. So, instead of jumping forward and making expensive mistakes, it’s prudent to learn the basics of operating a small business to improve your chances of success. Here are some important things you should know.

  1. Talent recruitment matters

The employees you hire matter significantly for success, and more often than not, you have to look beyond certificates or qualifications. Good character sometimes matters more than a pure skill set. Therefore, develop a strategy to recruit top talents and retain them. Take time to define your company culture, and make sure you consider it in the hiring process. Successful companies make it a point to track talents and develop great programs to retain them. Thankfully, you can use platforms like LinkedIn to track and recruit great talents for your small business.

  1. Delegating IT management to experts is worth it

If you own a small business, you may feel like your in-house IT department can do it all. However, the truth is that to grow your company through technology, you have to give up some control at a point in time. Delegating IT tasks to professionals makes your business more efficient because you have hired experts for the job. Outsourcing IT management will enhance growth, reduce technical challenges, and save time to focus on your core responsibilities. Whether you need fully managed IT support, cybersecurity, or strategic technology advice, trusted tech professionals can help fulfill your business potential through innovation.

  1. A contingency plan is a must

Having a plan B for your small business is important because thunderstorms may come at a time you least expect them. Planning for unforeseeable disasters takes time and resources. That said, whether your business is big or small, neglecting a contingency plan could put your future in danger. One way to prepare for the worst-case scenario is to contemplate various scenarios and come up with answers.

For example, you should develop a plan for what if a recession strikes or a major supplier goes up in flames. Your plan B should cover natural disasters and other possible factors that can disrupt your workflow, such as backup options to compensate for a go-to vendor failing. Remember to come up with a contingency plan that doesn’t waste your time and money, which can happen when you prepare for low-risk situations. Examples of the most pertinent issues to address in your contingency plan are cash flow, inventory, and office management.

  1. Customer service is key

Good customer service goes beyond showing a smiling face. It’s one thing that can directly impact your profitability because most small businesses need repeat buyers to succeed. Business Case Studies report that it costs five times as much to win a new customer as it does to maintain an existing one. If weary complaints characterize your customer service, it’s time to make changes.

Small business owners should weave custom service into every fabric of their corporate culture. This way, they can empower every employee to provide solutions to common customer problems. You can take care of issues promptly if each department provides its own customer service. Arming every team member with the ability to serve clients will help you attract customers for life.

  1. Marketing is crucial

Marketing can overwhelm small businesses that don’t fully understand the concept or lack a budget for the department. However, to grow your small business, you must find ways to consistently generate leads and keep them returning. According to experts, effective marketing strategies hinge on marketing research, knowing your consumers, assessing competition, targeting, and promoting great products or services. To successfully operate a small business, you have to be able to wear different hats and stay up-to-date with the latest trends.

  1. Learning from others is a good thing

As explained before, launching and growing a small business isn’t a walk in the park. About 21% of brands collapse in their first year, and 65% go down the drain within a decade. While the reasons for failure vary from business to business, it all comes down to the owner not learning from the mistakes of others. No entrepreneur possesses all the knowledge to manage every business situation. That’s why you have to consider attending small business events and following online resources like podcasts and chat groups.

One way to gain knowledge from experts is to find a mentor in your industry. Platforms like SCORE.org are a great place to discover a mentor and access resources like webinars and workshops to grow your business. Alternatively, you can use LinkedIn to network with thought leaders and attend local small business meetups. You may be surprised at the number of experts in your circles who can offer incredible business tips.

  1. Passion is king

Small business owners are often lonely, and there are barely enough hours in the day to achieve every important goal. From huge success to big downward spirals, a lack of passion can make entrepreneurship more difficult than necessary. Understand that the journey may not be smooth, and allow your passion to drive you in the face of challenges.

  1. The numbers matter

As a small business owner, you must study the number behind your operations. If you have a solid grip on the key performance indicators, you will know whether your company is doing great or bad and what the future will look like. Important numbers to know regarding your business include start-up costs, cash flow, projected profits, and sales.

You can make crucial decisions based on business economics to foster growth. Search for ways to lower costs as much as possible and use affordable marketing strategies like social media and email marketing to drive awareness, if traditional advertising methods are expensive.

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Like Minds is a global thought leadership platform delivering world class events on business development, knowledge and insight aimed at entrepreneurs and business leaders to engage, stimulate and empower them to become global businesses of the future. We also offer a bespoke service for corporate clients and training programmes under the Like Minds U brand. For more information please email bespoke@wearelikeminds.com