How to Nine Tips for Small Business Success - Brief Article

Training & Development, July, 2001 by Meir Liraz

Are you trying to start or keep afloat a small business in the slowing economy? These tips can help.

1. Stay current. Join an industry association related to your product or offering. Constantly research information about your field; it's easy on the Internet. Subscribe to magazines that cover your business; they're tax deductible.

2. Put together a solid financial plan. If you don't know where you stand financially and have no short- or long-term financial goals, then you're letting fate dictate your outcome. Keep a budget, and institute a measurement process to stay on top of your monthly progress.

3. Perform cash forecasts. Look at your next three months' projected income or revenue, then lay next to it all of the expenditures you need to keep the business running. The difference is your cash flow. You must do this to avoid surprises. Most businesses hit a brick wall because the owners didn't know their cash flow.

4. Get an advisory board or a mentor. This may sound crazy for a small operation, but it's really not. Ask family members or friends whom you trust to be your board of directors. They should review your business plans and results regularly. Having someone to give you an objective opinion is critical.

5. Maintain a balance of work, play, and family. This is crucial for long-term success. We all put in crazy hours on a short-term basis to finish a hot project, but doing that regularly is a dangerous sign that you're losing perspective. You need to be able to step away now and then to recharge your batteries.

6. Network. It's easy to become isolated in a small business. Force yourself to go out and meet people who can provide business support. Contact with others will motivate you and help generate new ideas.

7. Be disciplined, motivated. One of the hardest aspects of running a small business is having the discipline and motivation to work every day. It's easy to become distracted and put off essential tasks. Keep your workplace and hours separate from the rest of your responsibilities. Develop a to-do list every day, setting goals for the week. Review how you're measuring up.

8. Don't rest on laurels. Force change. Look for things to do more efficiently or how to improve your service or product. Constantly evaluate your competitors, and benchmark yourself against them.

9. Do something you love. If you're in a business you hate, then it's a good bet you won't be successful. Identify your true talents and skills, and get into a business that makes the most of them.

The saying, "If you do what you love, the money will follow," is true. Remember: Success is more attitude than aptitude, and failure can be an opportunity to begin again more intelligently.

Meir Liraz is the president of BizMove.com, a free Website for entrepreneurs and small business owners and operators.