There are about 3 in 5 small businesses shutting down within two years of start up and the statistics in terms of small business failures are frightening. Is there a magic ingredient that the remaining two has? A poor business model, poor products, bad sales staff are what those 3 businesses that closed down may have but every day we hear about small businesses surviving and thriving in the economic downturn. Is it possible there's a secret to success? It may be.
Most successful small businesses have one thing: a passionate owner or owners. These people love what they do, are passionate about it, and they believe in the product and service they produce.
But passion alone is not enough since there are many passionate people who have failed businesses. Small businesses thrive when their owner has a clear sense of direction, a goal that they want to achieve, and a strategy to make them achieve it. With small business owners, they need to know where they're going and how they're going to get there.
Another thing small business owner would need is a sense of how to run a business. Often a small business owner has worked for a company for most of their life. Although they may be passionate about their new venture and know where they are headed - they may not know how to run a business. A business-oriented partner, a good accountant and even a good lawyer can help you keep your small business on track.
If a small business is happy to stay small, then it's often more successful as it doesn't overreach its capabilities or financially over extend itself. You can keep your business going longer if you find a niche market that's lucrative unlike a small business who invested all their capital in more machinery to handle big orders which they couldn't manage to clinch. Slow and steady growth is the key to many small businesses' longevity.
Also helping you is playing to the strengths of a small business. Small businesses should push advantages like the personal service, the investment the owners have in keeping their customers happy and the care they take over quality and there are many larger companies that appreciate the benefits of dealing with small companies.
Tending to stick to their knitting is another factor of successful small businesses. Professionals are what they use to market their business, perform tasks that are need to run the business well, and do their books. Doing it all themselves is what small business owners try to do even if it's not their expertise. This leads to poor performance in areas that are vital to the business - and consequent failure.
Do you know the secret to success? A combination of hard work, common sense, and passion is what most successful small business owners would say.
Most successful small businesses have one thing: a passionate owner or owners. These people love what they do, are passionate about it, and they believe in the product and service they produce.
But passion alone is not enough since there are many passionate people who have failed businesses. Small businesses thrive when their owner has a clear sense of direction, a goal that they want to achieve, and a strategy to make them achieve it. With small business owners, they need to know where they're going and how they're going to get there.
Another thing small business owner would need is a sense of how to run a business. Often a small business owner has worked for a company for most of their life. Although they may be passionate about their new venture and know where they are headed - they may not know how to run a business. A business-oriented partner, a good accountant and even a good lawyer can help you keep your small business on track.
If a small business is happy to stay small, then it's often more successful as it doesn't overreach its capabilities or financially over extend itself. You can keep your business going longer if you find a niche market that's lucrative unlike a small business who invested all their capital in more machinery to handle big orders which they couldn't manage to clinch. Slow and steady growth is the key to many small businesses' longevity.
Also helping you is playing to the strengths of a small business. Small businesses should push advantages like the personal service, the investment the owners have in keeping their customers happy and the care they take over quality and there are many larger companies that appreciate the benefits of dealing with small companies.
Tending to stick to their knitting is another factor of successful small businesses. Professionals are what they use to market their business, perform tasks that are need to run the business well, and do their books. Doing it all themselves is what small business owners try to do even if it's not their expertise. This leads to poor performance in areas that are vital to the business - and consequent failure.
Do you know the secret to success? A combination of hard work, common sense, and passion is what most successful small business owners would say.
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