Small businesses make up the backbone of the British economy, dominating the landscape. But entrepreneurs are faced with trying to succeed against a backdrop of doom and gloom statistics, such as 20% failing in year 1 and 60% failing by year 3.
Success results from a combination of activities. As such a list of top tips can ensure you focus your efforts on the areas that contribute to success.
1. Take care of costs and cash flow
29% of businesses fail because they run out of cash. Keep a close eye on costs and manage cash flow. With options such as revenue-based finance, this is becoming increasingly easier.
2. Be savvy with your marketing
Marketing should take up a huge chunk of your budget, but you need to spend it wisely. Hit up social media which is a fantastic way for small businesses to build and connect with an audience.
3. Value skills, including your own
All small businesses are operating in a landscape of skills shortages. Identify and nurture talent to ensure you have the skills you need on board. You will, no doubt, be wearing many hats in your endeavour to grow your business. Focus on your key skills and make sure you don’t lose ground or burn out wasting time and effort or by spreading yourself too thinly.
4. Never underestimate the power of networking
Connect, connect, connect. This opens up opportunities and provides a safety net of knowledge and support.
5. Seek out support
Dig a little below the surface of every successful entrepreneur and you’ll discover that they’ve got someone championing them, supporting them and mentoring them. As a business coach, I help small business leaders succeed.
6. Value flexibility
Small businesses often have flexibility as an advantage over bigger competitors. Use it wisely. Adjust to the current playing field and consider how you need to change to suit your actual customers and clients. Just take care not to cast your net too wide.
7. Build in resilience
As an individual small business owner you need to be resilient and the business needs to be resilient too. In small businesses negative impacts of external events can be felt more keenly. Develop resilience within the business to weather the difficult times.
8. Look after your people
It’s a cliché that every employee matters, but in a small business each individual employee holds greater weight. Build a business culture that reflects your values and choose people that fit in with this. Then look after them so that they stay and are fully engaged.
Small business owners benefit from the exclusive advice, guidance and mentorship of business coaching so that their business is a success story.