Small Business Success – The Top Keys
For small businesses, having a good business idea alone is not in itself a sure-fire formula for success.
In fact, any venture has a far better chance of achievement if it’s based on accurate business planning, smart marketing, close monitoring of everything, confidence in your product or service and yourself, and determination to make it all happen.
So here are 10 keys why small businesses succeed in their venture. The information they contain might appear to be common sense but it’s always helpful to be reminded of the basics, which are so often lost when our heads are buried in the quagmire that is so often known as a business life.
- Field experience
People establishing their own small business in a field where they have been employed or are associated with people who have these experiences know the field, understand its potential, have been exposed to its failings, lived through the pitfalls and so can plan accordingly.
- Service providers
Small business people who have steered clear of manufacturing and retailing industries which are capital-intensive ventures and require continuing cash support – both of which are tangled with snares. They provide outsourced human resources and services, sometimes those required to launch and sustain the aforementioned enterprises.
- Start-up costs
The overwhelming majority of successes require minimal start-up small businesses
Low capital costs mean greatly reduced stress on cash flow to repay external loans or personal investment in the business and lower the risk in general.
- Running costs
Successful people in small businesses look to maximize profits and keep overheads and expenses to a minimum. They focus their energy on building and developing their business rather than keeping a costly image.
- Market necessity
The market must need what you are offering in a small business. Businesses which fulfil a need in the market have a better chance of succeeding than those that don’t – no amount of marketing will create demand for a product or service which no-one wants.
- Specialised pla
Businesses which fulfil the demands of niche markets are more successful than those that try to be all things to all people. Selective specialisation in an area of high competency provides natural focus and direction for a business and the potential for providing improved service.
- Future demand
Successful small businesses ensure that there is not only a need for their service but also a continuing demand for it which will ensure their continuing viability. They also have contingency plans in place for development of their product or service to accommodate new information, technology and social changes.
- Growth factor
Small Businesses which plan for achievable growth are more successful than those that look for quantum leaps in profitability. They take into account every aspect of their operation and ensure their goals can be met. They also realise that profitability is not the only factor involved in their long-term growth and success.
- Economic factors
Successful small businesses rarely feel the full effects of economic upheaval since they can adapt more readily and are not lumbered with huge capital commitments. Indeed, many of them found a catalyst in the economic recession and the outsourcing engaged in by companies reduced to a lean operating budget.
- Service elements
Successful small businesses are not restrained by red tape, can adapt quickly, adopt new trends and, most importantly, provide close relationships with clients. They are able to provide high levels of service and quality which also favour their success and often leads to new businesses through referral.