small business experts

small business experts

Strategies and Best Practices for Small Business Success

1. Introduction to Small Business Landscape

Small business contributes to the economic recovery, including through new employment that targets the long-term unemployed. Graduates of the self-development programs become more confident in their strengths and are better prepared to succeed personally and professionally. There are established support services and programs that help business owners along their journeys. While many small business owners possess strong skills in their fields, they do not necessarily have training in all the areas that small business requires. This document fills gaps by providing information and facilitating education that enables greater success in small business. Business mentoring is considered integral to entrepreneurship training and development.

Problems within small businesses increase as the business grows in size. Graduates of the self-development programs become more confident in their strengths and are better prepared to succeed personally and professionally. Three main empowerment tools used in the US are the Self-Employment Assistance program, Adult Education, and informal learning gleaned from strategies suggested by entrepreneurship training programs. Small business owner empowerment can be made more effective with additional successful business launch strategies. Businesses in the top quartile of financial literacy are more profitable and more volatile. Business education in ownership, management, and operation can be enhanced through business scholars researching creative recruitment strategies to entice potential business owners to return to institutions of higher learning to gain additional knowledge and collaboration.

2. Key Components of a Successful Small Business

There are several key components that must be in place before a small business can truly get “in the game.” These components include a solid business plan, knowledge of one’s target market, specific operational and financial strategies and best practices, a competitive advantage (including technology), marketplace differentiation, and a competent and capable business team. The business plan should be flexible and practical to implement; should be reviewed frequently and adjusted to current conditions; and, accompanied by hard work and a degree of good luck, will ultimately guide the small enterprise to success.

The following recommended best practices and strategies are provided directly from small business managers in the field. They provide insights and real-life experiences small business managers have learned in running their own businesses over the years. These best practice strategies can be a smart way to start and/or improve business operations, and increase the satisfaction rate of small business managers. Best practice strategies also offer industry benchmarks, which the small business manager can use to compare his/her business to other businesses in the industry. Finally, specific recommendations from these small firms are included which can be acted upon by the small business manager as his/her company progresses along the critical path of growth to extraordinary success.

3. Effective Marketing and Branding Strategies

In the APQC study, the lesson most often learned by small businesses is that marketing never stops – it is a mission that is constant, continuing, and ultimately pervasive. These business leaders understand that marketing is not simply a department or function; it is the creation of an image, ideally a strong brand image, in the minds of all the participants in the small business arena – the customers, suppliers, employees, stakeholders, and the community. Frequently, the people who work for small companies are untrained in marketing skills. These small business leaders believe that everyone who works for the company becomes a salesperson when they are “out there”. They must, therefore, strive toward consistency in image and integrity in both words and actions. Best practices for marketing a small business include the following:

– Extending the company’s brand and sales performance by consistently communicating its brand image. Doing this builds a high level of customer understanding, trust, and loyalty.

– Putting the customer first. Every company, win or lose, depends upon its customers.

– Being professional on all levels in items such as letterhead, packaging, clothing, phone calls, proposals, reports, and marketing materials.

– Ensuring that every business card, brochure, or other promotional piece used by the employees is professional and has the company’s brand image.

– Using the Internet web pages to promote the company brand, merchandising items, and allowing ordering capabilities, and being mindful of the additional support that is required.

– Making charitable donations of time, products, services, or cash to local charitable organizations and events that could benefit from the company’s efforts and who, in return, develop awareness and positive attitudes about the company brand.

The study also suggests looking carefully at the company’s website, at the way they use email, and at corporate support for charitable activities. Respondents feel that web communication should be easy to access and informative, and that newsletter content should be entertaining, building a favorable image. Online promotional efforts should be tasteful and courteous. Although donations should be charitable, employees should receive recognition for their charitable efforts, thereby helping promote the company.

4. Financial Management and Budgeting Tips

1. Review trends over time, checking the month, quarter, early budget, and year-to-date figures. This will prevent you from waiting too long to make necessary corrections. Start your budgeting process by listing all known items and consider using an Excel worksheet. There are many examples on the web. You should be able to identify the major issues and where you can make the biggest impact with less effort and time than using the seat of the pants method. After listing all known items, your budgeting is more like math than anything else. Use known future events and estimated assumptions. Use the recent past to estimate amounts for the estimates if possible. If not, split the difference. Very seldom will your budget or the past events be a perfect match. If possible, break down the budget into short and long-term categories. This will help to keep your month budgeting from cluttering your longer-term focus. Small business success is easier because there is a closer small business focus.

2. Budget your receivables and payables by the month whenever possible. For another small business focus, try to match your payables to the expected time of receipt of your receivables by the month. And as a financial management tip, consider having smaller prizes for shorter-term results to keep your associates on board. If your small business must carry inventory, you can lessen your inventory hold by forwarding the delivery date to match the expected ship and delivery to your customers. Avoid delivering the same week your product is received if possible. The strategy and best focus is to avoid a double carried value in inventory. I have previously discussed financial tips and consider them small business proteins. You have to use them consistently to get them to work for you. Like muscle, these tips and financial management techniques need to be worked to be effective. If you don’t build them, you won’t have them. Not to put too fine a point on it, they will prove to be a small business headache.

5. Innovative Technologies for Small Business Growth

If a business administrator wishes to grow through sales expansion, new market products, innovation, and operational efficiency, the strategic use of technology is essential. In recent years, a surge of companies has been established to meet the varied technology needs of the small business owner. In both their strategies and operations, small business owner-operators are using these technologies to create, exchange, and retain customer value. Reputable technology companies or advisors that know how to incorporate technology to achieve business strategy are best equipped to guide the business owner. It is important to recognize and address user-centric design, technology roadmaps, and requirements gathering among small businesses. In the digital age, it is no secret that incorporating innovative technologies into the daily practices of a small business will greatly benefit both business efficiency and the production of goods and services, making them more competitive.

The first issue for small business owners is deciding what digital technologies to use in their business. They can use online newsletters, websites, wikis for defining ideas, and other means of communication. With customer relationship software, they can keep customer records, and they can automate electronic bill payment. Social media has grown and small businesses can expand by taking advantage of leading-edge web-based ecosystems. Facebook can be used in combination with a unique website to continue the dialogue started when a new customer joins the business online, contains its best customers, and follows up with a personal email. Delivery times are faster with online inventory technology. The small business can also use wireless networks, allowing it to use technology wirelessly with notebooks or future smartphones. To save time and keep away from the frustration of mixing print-based and online inventory on different platforms, cloud software is used by small businesses. Customer relationship management, marketing tools, telephony, and payment systems should also be included.