You’ve been to business school and learned it all, right? Not so fast. Sometimes, the most important lessons come to us via mistakes we’ve made. Here are the top five keys to small business success that you never learned in school. 1. Don’t Be Such a Control Freak. One of the hardest things any small business owner has to do is learn when to delegate. Of course you want to do it all yourself because that’s the only way it’s going to be done right. But that only results in burnout and a bunch of employees who never learn anything. You’re only doing yourself and your business a favor when you learn to relinquish some control. The more hands you have helping you out, the more successful you will be. 2. Baby Steps. You might be of the mind that your business should be everything you’ve dreamed it would be right out of the gate. But consider the “baby steps” approach. Start out small. Spend as little as possible at the very beginning. Score some successes early on and then build on them. Get rid of the stuff that doesn’t work immediately. If you follow the “baby steps” approach, you have less to lose if you start off down the wrong path or have to scrap your whole plan and start over. Plus, it gives you a chance to research along the way by getting customer feedback as you go. 3. End Your Day Thinking About Your Business. Once you’ve left the office and finally spent some time with the family, your business is the last thing you want to think about. But spend just one more minute, right before you go to bed, thinking about one problem you’re facing in your business. The beauty of our brains is that our subconscious minds work while we sleep. If you spend a few minutes thinking about a problem right before you go to sleep, you’re essentially enlisting the aid of your subconscious to help you solve the problem. It’s the easiest work you’ll ever do. 4. Respect Your Computer Systems. Most small businesses take their computer systems for granted. They don’t back up their data, they don’t maintain their computers regularly, and they don’t enlist the aid of professionals to care for their computers. In fact, we don’t pay any attention to our computers until something goes wrong and we find ourselves in a crisis. If we treated our computer systems like factories treat their equipment, by regularly shutting down the whole works to perform routine maintenance, we’d get better performance and fewer problems from them. 5. Study the Numbers. It is a rare small business owner who actually likes to look at financial statements, at least when the business is just starting. Why? Because the numbers can be depressing. No one wants to look at the numbers when all they bring is bad news. But the truth is that you can’t improve those numbers until you have the courage to look at them and analyze them. Looking at bad numbers can bring about feelings of failure or despondence. So try this trick: Once every week, pretend you’re the accountant for your business. You have no emotional ties to the company. You’re only job is to crunch the numbers. When you separate yourself emotionally from the message that the numbers give you, you’re more likely to look at them objectively, without becoming despondent over or depressed about the news they bring. You’ll find that looking at the numbers is actually a very liberating experience. It can help you eliminate activities that don’t add value to your business and focus on the activities that help you profit. Use these five keys to help you find success in your small business. You’ll be glad you did!
Posts Tagged ‘Small Business Owner’
5 Keys To Small Business Success
December 31st, 2009Now is a Great Time to be a Woman Small Business Owner
December 29th, 2009In the last 20 years, where women work, how women work, and what kinds of jobs women are seeking have changed. As more and more corporations have re-organized and downsized, as more children of Baby Boomer mothers are leaving home, and as more traditionally employed women are waking up to the fact that they want more out of life than just simply getting a paycheck, the world of small business ownership is exploding.
As a whole, the United States is becoming more entrepreneurial. More than 1/3 of all people involved in entrepreneurial activity are women. According to an April 2005 report by the U. S. Small Business Administration, Office of Advocacy and Business Times, there are an estimated 10 million privately held businesses in the United States that are owned by women.
More people own small businesses in the United States than ever before. According to the U. S. Small Business Administration’s report dated June, 2006, it is estimated that there are 25. 8 million small businesses (including self-employed and sole proprietors) in the United States.
According to the same report, over the last decade small businesses have generated 60 to 80 percent of new jobs, and they employ 50. 6 percent of the country’s private sector workforce.
In addition to starting new businesses, there are also an increasing number of entrepreneurial Americans who are buying existing small businesses, instead of starting their own. According to a report by Wachovia, small business acquisitions are growing in popularity. On any given day in the United States, 1. 7 million businesses are for sale.
Why Women are Starting Businesses
Women are starting businesses for two main reasons: lifestyle and money. Many run their businesses from home so they can be there for their children, instead of being dependent on daycare and other non-family support care.
Other mid-Baby Boomer women (those in their 40s) have achieved a level of success in the traditional workplace and are striking out on their own, eager to call their own shots and take charge of their financial futures.
Older Baby Boomer women are retiring early to start new businesses. According to AARP, entrepreneurship is growing in those 50 years and older. In addition, they predict that people who take early retirement or whose jobs just disappear will drive solo business formation in the future.
Two Greatest Challenges to Women
The greatest challenges for women starting up businesses are access to capital and general lack of know-how. However, these challenges are not stopping women from starting up. Today, women have the same access to money as men do. In fact, many start-up fund sources are specifically targeting women through grants and new venture capital. Women can be as creative in their approach to money as they want to be, making use of incubators, partnerships, or more traditional methods of funding such as home equity lines of credit, angel funding, or commercial loans.
Women are also realizing that, just because they don’t have a business degree, it doesn’t mean they won’t be successful at running a business. Accounting needs can be outsourced. Teleseminars can be taken. Books can be read. Questions can be asked. Experience can be gained. Women know that they don’t have to do it all by themselves!
In addition, women are finding that their life and work experiences count for something when starting up a business. They recognize the treasure-trove of applicable, relevant experience that they have amassed over the years and are tapping into these storehouses for their start-ups. Moreover, they know that whatever they don’t have right now, they can learn as they go.
If you are a woman considering small business ownership, this is a perfect time for you. Don’t let lack of money or expertise stand in your way. Have confidence in your valuable life experience, and draw from it when starting your business. Then get creative about funding. Never before have banks and other creative lending sources been more supportive of women-owned small business start-ups.
Unsecured Start Up Loans for Small Business – is it a Good Idea?
December 28th, 2009First-time small business owners usually are chary of unsecured start up loans. This is because the time frame for making a profit is not definite whether or not there is a properly thought out and lucrative business plan in place for the future business.
When profits or revenues do not materialize per plans, as in most cases, there is danger of default on loan repayment. When this happens credit rating of the person involved gets degraded as unsecured loans are granted on the basis of credit and borrowing history of the business owner.
And if there is bad credit history behind, he/she can very well forget that small business loan. Letâs discuss some more aspects of unsecured small business start up loans. Some Facts
If the credit history of âto beâ small business owner is good, unsecured start-up business loans are easier to avail as compared to other business loans. But it is better to go for secured loans against property or equipment affiliated with the business.
Secured loan not only keeps personal credit rating intact but poses lesser risks for the business owners, because they can use the hypothecated equipment to generate a profit for the business. As a result the loan can be paid back on time. Not just that, secured loans are for longer tenure and come with lesser interest rate burden, thereby lowering the cost of loan.
But if you have decided to apply for unsecured small business start-up loans, you should be careful about the requested amount. Remember, the more you owe on the loan (including interest), the more will be the money which you have to repay.
If you are not exactly sure how well the business will do in the first year and want to keep your credit rating good, it is best to request a small amount for your unsecured start-up business loan. This will make sure that repayment installments are small and if you are punctual in repaying, you can always ask for more, which will be gladly given. Some Advice
Before you apply for an unsecured business start-up loan, there are several things that you should keep in mind.
First of all, you will need to convince the lender that it is a good decision to issue the loan to you. Since unsecured loans are based on your credit and repayment history, you will have to convince lenders that you can handle your personal finances in an organized fashion. Good credit record will put lenders at ease since they will be able to see your repayment history on your credit report.
Since lenders will be looking at your credit report, you should maintain a positive report as far as possible. If you know that you owe certain lenders, you should try to settle these debts or set up a payment plan with your creditors. This will be visible on your report.
Before you make any final decisions about unsecured start-up loans for business, be sure to speak to an accountant or a representative from your local bank. This will make sure that you are applying for the right loans which would help your business to develop quickly and steadily. You must not take a decision unless you are convinced.
