Success is the key factor that makes small business exciting.
The Unsuccessful Small Business
Few situations could be worse than persisting with an unsuccessful small business. You don’t know where your next meal is coming from. Worse, how you are going to feed your children and give them the education they deserve.
Your wife begins to lose interest in you. You see ridicule everywhere (even where it might not exist). Friends avoid you (unless you have borrowed money from them).
You’d be lucky if you don’t hit the bottle (or do something worse).
How You Succeed in Small Business
While success is not easy, it is not impossible. You start the success process at the very beginning – by looking at yourself and selecting a business that is right for you.
Looking at yourself involve checking that you have the bare minimum of essential success habits. Like planning your course before starting out. Like initiating things without waiting for somebody’s orders. Like persisting against adversities long enough. Like combining the persistence with sensible observation. [Blind persistence with a wrong approach only makes things worse. You must observe realities and learn from your successes and mistakes.]
The best business to select is a niche business with little competition (like a grocery store in a suburb with no existing grocery stores). Or a business in the right location (like a jewelry shop in the crowded jewelry shopping center of the city).
The first choice above is far better for small businesspersons. The second one would most likely mean spending money as if you are hosing water.
Right business is also a business that involves doing things you like. If you prefer the outdoors and adventure, you might not find sitting in a suburban grocery store all that pleasant.
If the things that you have to do day after day are things you do not like, even success might not motivate you to continue. On the other hand, if you are fascinated by the things you do in your business, you might find it easy to work long and hard, and put up with all the frustrations and disappointments.
Keys to Business Success
Don’t think, however, that you can make a successful business of all the things that you like. If you collect theater tickets, that alone might not make a business of selling used theater tickets a worthwhile proposition in your suburb (but online, with the whole world as your market, you might, just might, find enough customers).
The key questions are two:
- Can you make acceptable quality deliveries at a cost that would provide a gross margin?
- Can you sell enough numbers to accumulate sufficient gross margins to meet your establishment costs and generate a surplus big enough for a comfortable life?
If the answer is a realistic yes, then work at at it (long and hard). Learn (and apply) quality assurance, marketing, delivery, after sales support and all the other key business functions.
And focus on that one business, instead of spreading out your time and money on multiple businesses (and messing up all of them).
Just in Case…
And it might be better to keep something in reseve – like a part time job, a working spouse, or some safe, income-yielding investment – just in case things don’t work out…
Now that you know the “secrets”, your next business might work out!