by Mark Holmes
http://www.TheLocalBusinessDoctor.co.uk
©
2009
Over 70% of small businesses fail in their first few
years. This is because of a fundamental lack of understanding on the part of the
business owners of how a business should be run.
These core
concepts are essential for small business success:
1. Vision
You
must have a clear goal. What is your business going to ultimately look like? Think
big and bold. Where will you be based? What is your business model? How much do
your want to be paid? How much day-to-day involvement do you want? How many employees
will you have?
Write down you answers.
2.
Strategy
Now you've got your goals. The next part is to
take a frank and honest look at where you are now. If you're just starting...it's
fairly easy to work out. If you've been in business a while, it may take a little
time to make a brutally honest appraisal.
This will give
you your direction for your successful small business.
Given
where you are now, decide how you're going to get to where you want to be.
Have
intermediate goals. Time Lines. Determine what will constitute successfully reaching
your goals.
3. Plan out your strategy
Create
a detailed blueprint of how step-by-step you will achieve you goals.
Critical
details to include:
Marketing
What
front end products will your use to attract new customers? How will you convert
them into customers? What are the exact steps to your marketing funnel?
Fulfillment
Product
development, research, and reporting. Product delivery.
Operations
Customer
Service. Finances...reporting and cash flow. Systems creation. Human resources.
4.
Mindset
Every business will have problems and crises. To
deal with these requires determination for small business success...never give
up.
It is important to have an eye for detail. Little mistakes
compound themselves. Have great systems in place so that your employees simply
follow your systems.
A curiosity and hunger for knowledge
is essential. Always be on the lookout to see what successful companies are doing
in other industries...adapt it to your own. Constantly strive to improve your
skills and business know-how.
5. The role of the successful
small business owner
Provide the vision and the direction
for your business. Then measure the performance. What are you doing right? What
needs to be improved? Seek to make constant improvement in all that your business
does...but none more so that in your metrics.
You must know
the answer to the following questions or it is only a matter of time before disaster
strikes.
How much does it cost you to acquire a new customer?
What is the average lifetime value of one of your customers?
These
two questions tell you how much you can spend to get a new customer. All things
being equal...whoever can spend the most to acquire a new customer becomes dominant
in their niche/market.
6. Productivity... for personal and
business success
Guard your time. Have a ruthless gatekeeper.
Plan everyday, week and month for the next year. Concentrate on the top 3 activities
that produce the most profits for your company.
Automate
as many processes as possible using software and machinery.
Focus
on your role as the business owner and delegate or outsource all non-essential
time consuming tasks.
Hire great talent. Be quick to fire
those that are not producing. And remember to hire slow and fire fast.
If
you haven't already, go back through this list and make notes. Jot down ideas
as they come to you. Then...use them in your business straight away, or block
out a time in your calendar to do it.
