People like to say we are living in the golden age of start-ups and small businesses. And truth be told, with so many digital resources, marketing platforms, funding options and global infrastructure, the playing field is as leveled as it could be. So, it’s not that hard to see where these ideas come from.
Still, favorable circumstances always bear heavy competition and the contemporary SMB market is absolutely relentless. According to some estimates 20% of small businesses fail within the first year. More than 50% close their doors before their fifth birthday.
So, we’ve an exciting situation in which all the resources one small organization wishes to prevail are laid out but the ones who want to get to the finish line want to use them strategically. Well, let us see if we can help you out and nudge you in the right direction.
Table of Contents
Set clear objectives and pen down a business plan
A business plan can be seen as a blue-print your company will be built around. It sets goals, lays out the infrastructure, helps you get funding, and serves as a stick you will use to measure just how successful at any given moment. You don’t want to start any venture without this important memo in your back pocket. A regular business plan should cover the following topics:
- Executive summary – Brief elevator pitch of your organization
- Company description – Location, name, business structure, etc.
- Business goals – Long and short-term aspirations broken down into tangible objectives
- Product/service description – This section should include fulfillment and sales strategy
- Market research – Be sure to include the competitor analysis as well
- Financial analysis – The lifeblood of your company including net profit margin, current ratio, and turnover ratio
- Financial projections – How your business will generate enough profit for a positive bottom line
- Employment strategies – These are the defined roles within your organization as well as staff management strategies
Automate and outsource whatever you can
The present-day business world is changing at a hectic pace. So, it might turn out you will need to make on-the-go changes to quickly adapt to these ever-evolving circumstances. This job will be much easier if you keep your resources focused on the activities that are generating revenue and delegating ancillary tasks to third parties.
In other words, instead of performing SEO in-house, you should look to hire professional link building services and so on. Flexible terms and scalable services will allow you to easily readjust and refocus no matter what the market keeps throwing your way.
Leverage cloud resources
Cloud resources are very similar to third-party services and outsourcing. By that, we mean they are easily scalable and largely work on a pay-as-you-go basis. But that’s not all. Cloud infrastructure effectively eliminates the need for physical documents and trims down the required on-site tools, which has a very positive impact on your operating costs.
Last but not least, cloud assets are made available anyplace, anytime meaning you will be able to use flexible work models like telecommuting and hybrid working. These options alone may fill in your ranks with some very prospective talents.
Encourage a culture of sustainability
In other words, your personnel want to be prompted to do as a lot as they can even as using as few sources as possible. Mandating frugality will inspire creative questioning and a sense of camaraderie. In order to do that, you will need to lead by example and, for instance, hire professional handyman services to make sure your premises are well cared for. The other way around is to provide small incentives (e.g. an extra day off) for workers who excel in this area. Setting such a system in place will ensure your workers are trained to achieve more with less and quickly adapt to new circumstances.
Make your customers your number-one priority
This is the point where so many small businesses make mistakes – they are so preoccupied with their bottom lines and their necessities they cut too many corners to make the journey enjoyable for their customers. And the customers are, after all, what keeps your company afloat.
Therefore, be sure to build all assets of your SMB around the tastes and preferences of your target audience. This covers all resources ranging from website design to customer service. Making this extra effort will make your brand more appealing and make the journey down the sales funnel countless times simpler.
Try to encourage repeat purchases
The goal of any aspiring company should be to acquire as many new customers as possible. That being said, in recent research, SMB owners have stated that 61% of their revenue comes from repeat purchases. So, if you want to set foundations for sustainable growth you first need to ensure that your core customers keep coming back for more. One of the simplest ways to do that is to invest in killer customer service business. Furthermore, you can give a higher focus to CE personalization and start some sort of loyalty program. Freebies are optional but make an important part of this story.
Attract young prospective professionals
Your employees are the fuel that keeps your company pushing forward. As your infrastructure grows these people will fill in the higher level positions and become future industry leaders. Be sure then to higher young talents up to this task. You will do that by offering flexible schedules, remote work positions, and tapping into the freelance market.
Also, you should do your best to turn your brand into a learning platform and provide your workers with all the training and learning tools they can imagine. These efforts will also foster a higher sense of loyalty and prevent employee turnover.
Conclusion
Well, we hope these couple of suggestions will give you a better idea about what the building blocks of a successful SMB actually are. Sure, as time goes by, you will need to deal with various challenges and sort out countless responsibilities ranging from marketing to cash flow.
But, these hurdles will be infinitely easier to overcome if your startup is built on solid foundations and that is what this article is all about. Putting enough effort into things that truly matter and leading your company through its growing pains will be smooth sailing.
