Tips for Starting a Successful Small Business
America was built on a desire for freedom and opportunity. Whether you crave the opportunity for an education, to raise a family, or to chase your dreams, we live in a land where we have choices. In 2016, there were 28.8 million small businesses in the United States, according to the U.S. Small Business Administration. These small businesses accounted for 99.7% of all businesses in our country. The opportunity to build our own small businesses not only benefits the businesses’ owners, but also many other citizens of our country by creating employment opportunities.
A small business is defined as having fewer than 500 employees. The U.S. Small Business Administration found over one third of the American working population is employed by a small business. It has been said these businesses are highly responsible for saving the economy after the Great Recession began in 2007. But what drives someone to start their own small business?
Benefits of Owning a Small Business
While there are often financial, emotional and other various struggles of owning a small business, spokesperson for NRMA Business Insurance Craig Wigginton said most business owners believe the benefits outweigh the difficulties.
“The majority of small business owners are enjoying the flexibility and autonomy of managing their own business,” said Wigginton, “With more than 85 percent telling us they would be willing to do it all over again.”
Here are some of the most enjoyed benefits of owning your own business:
- You’re your own boss
Instead of answering to someone day in and day out, you get to make the decisions directly impacting your business. For many, this is a huge benefit because they flourish with independence.
- You get to chase your own dreams
Instead of working towards someone else’s dream, you’re living out your own. For so many people, they’ve known what they’ve wanted since day one. They have an undying passion for something and believe that passion fuels their purpose.
- You’re helping
For 96% of small business owners, helping their clients and/or customers is one of the top rewards. Whether you’re serving someone a cup of carefully crafted coffee, or rescuing helpless animals, the gratifying feeling of helping others is undeniable.
- You can have a more flexible lifestyle
You can determine if you work on holidays or when you take your vacation. You can choose your hours and where you work from.
- You’re an active part of your community
Owning a local business will benefit your community in one way or the other. Whether you’re providing a service or supporting the local workforce, you’re directly impacting the community.
Planning & Tips
While owning a small business has many benefits, it also has a fair amount of challenges. From start-up costs, to hiring the right employees, to maintaining your organization, there’s a lot to consider and plan for. According to the Bureau of Labor Statistics, roughly 50% of all small businesses fail within their first four years of business and the longer the business remains successful, the longer it will survive.
Consider these tips during the planning process and before launching your business:
- Believe in your brand
Believing in your business is necessary for survival. You will, at some point or the other, face challenges and may even feel defeated. Knowing you’re chasing a dream you believe in full- heartedly is the only thing that will push you through difficulties.
- Create a business plan
Before anything else, map out your business plan. Your plan should include an executive summary, your company’s description, financial plans and projections, a full list of services or products, how you plan to organize and manage your business, and your marketing strategy. Make a plan as to how you will make your business stand out. What’s your niche or specialty?
- Embrace your expertise
Stay true to your strong suit. If your business is going to be successful, you must first be an expert at creating or providing your product or service. If what you’re offering your customers is already offered, make sure your product is undeniably superior to the competition.
- Be flexible
It’s important to begin with a plan, but you should also stay flexible. There are certain aspects of your plan that simply won’t work. Determine what areas you’re willing to be flexible with and what you believe cannot be compromised.
- Have patience
Very few businesses are wildly successful from day one. Learn to have patience and enjoy watching your business grow. Build a system for success, but don’t rush it, and take each day at a time.
- Have back-up
Build a reserve of funds and energy for when times are tough. Instead of splurging on unnecessary things, learn to think economically and save what you would otherwise be spending. In the same way, store your energy for the days you are too drained to handle it all. When in doubt, keep sight on why you started in the first place.
Support Small Business
In the land of opportunity, you should never be afraid to chase your dreams. Proper planning and believing in your business are vital components to your success. Studies show half of start-ups survive their first five years, while one-third survive the first 10 years. Holmes Custom has been in business over 60 years and now employs roughly 70 full-time employees.
“I was employee 11 with a tank full of energy and passion!” Croft recalls. “I have made more mistakes than I care to admit, but I’m ok with it because it makes me a better boss, husband and father. I enjoy running a small business and working hard to keep growing it, so we can have alumni in our company who can dream and work with us, or even go start their own small business.”
Above all, Croft is passionate about consistently improving his business. He knows there are 141 people, including his employees and their families, relying on Holmes Custom.
“That keeps us focused on our game within all aspects of our business. It inspires us to take care of and treat every customer with the utmost respect and manufacture quality products for all of them!”
With small businesses employing 56.8 million Americans, they are at the heart of and an essential part of our economic success. Supporting small businesses positively impacts the economy on both a national and local level.