Things To Consider Today    By Leland Pulley

The Ups And Downs Of A Small Business  

Imagine sailing a boat for the first time in a large lake or even the ocean. It’s a thrill to learn you can really do it. Once you learn a few basics it seems you have everything under control. You’re in charge and enjoying every moment of your new experience. However, what happens if the weather changes so winds get stronger and waves get bigger? Are you still in control? Will you head to shore quickly for safety, or merely presume you can handle the situation until the storm passes? Smart amateur sailors will acknowledge the limits of their experience and head for shore.

Starting a small business and running it can be similar to sailing. It can fill you with joy or cause you to have problems. Just as a boat goes up and down with the waves, a business has its ups and downs too. This is especially true if this is your first business or your first attempt to run this particular type of business.

I have played the employee role in one type of business, and now work for myself in a completely different type of business. I also am helping a family member start a small business successfully. Although each of these businesses is different, the underlying principles for success are similar if not identical for each of them.

Pick a business that you really want to do and not merely one that can make some money. You have an interest in it and will enjoy doing it. These things are critical. They will help to sustain you through all the headaches of working for yourself. The business should utilize your natural aptitudes, and the skills you’ve developed. Doing what you want and are good at is what makes the small business route so appealing to many people.

Study the marketplace for the type of business you want to do. Is it crowded? Know your competitors and what they are doing right. How are they attracting and keeping customers? What can you offer that they don’t? What will you offer that will be unique or cheaper or better than competitors so you can develop customers?

Once you decide to get involved, seek all the information you can about the business before getting started. This avoids unnecessary mistakes, and saves both time and money. Junior colleges offer courses relating to small business. Contact the Small Business Administration for information. There is a lot of information on the Internet. One important suggestion is to gain experience in the type of work you will do by working for another company in that same business before starting your own company.

Make sure you check out all the legalities and get the paperwork right. This will save you trouble and legal problems later. Taxes are tied to this too.

Being your own boss feels good, but remember you have no guarantee of income while starting your business. For this reason it’s good to have some savings or another income in the family to pay basic bills. Remember, many small businesses takes months and even up to three years to become profitable.

As a small business owner, you are never done. There are no set hours, so you can easily work more than forty hours a week. There is always something that needs to be done or could be done to improve or expand the business. If you seek limited hours or the easy life, especially when starting a business, maybe you shouldn’t start it.

Because of the demands a business places on you, it’s best to start one at a younger age when you have lots of energy, enthusiasm, and good health.

Pick your partners and employees carefully, if you have them. Get partners who are trustworthy and will make a real contribution to complement your contribution. Hire employees who have a good work ethic and are team players. They’re dependable and will do quality work.

For businesses with a store front, location can be important. Consult with knowledgeable persons about his before establishing an office or locating your business at a specific address. Think about convenience of customers reaching your location, as well as parking spaces. The area of town is a significant factor too.

Have good outlets for all supplies and basic materials needed for your production. Periodically check for prices and delivery options among suppliers to keep your production costs under control.

Establish a good and detail accounting system for tracking all funds. This will help you to do budget forecasts, track actual costs, pay taxes, do payroll, etc.

When you start out, you may be a one person operation. In this case you’ll need to know a lot of different things, unless you can hire others to do some things for you. As your company grows and other people are brought in, you can divide responsibilities with them. This allows you to manage more and keep everything under control. You may choose to do some specific functions yourself because you like to do them or you’re the best qualified person to do them.

Network with other business people in your local area to share contacts and ideas and learn from them. Join organizations that support your type of business. Attend appropriate conventions or trade shows.

At times it’s wise to pool resources with other businesses in your industry in order to seek a common goal. A lobby or group voice is more powerful than the voice of only one business.

As you operate your business, don’t become complacent. Keep up with what is going on inside your company. Be aware of the latest trends and techniques in your industry. Don’t let competitors get ahead of you.

Don’t overexpand or expand your business too fast. You can spread yourself and your resources too thin and the quality of your products and services will show this. During expansion watch your funding so you have the necessary funds or capital to keep up with current expenses, as well as expand the business.   

Let’s return to sailing a boat. There is nothing like seeing your company grow. Your company is getting orders and making money. Your products and services are helping people. There is a lot of personal satisfaction and excitement in this, just as much as that first sailing trip in the ocean. Remember, however, to be on the lookout for bad weather and other potential problems. You may have to cut your sailing trip short or wait until a better day. This is similar to cutting back on business operations or not expanding now until business conditions are better for you. Otherwise you will lose money. Yes, if you do run into problems sailing, come into shore or get out of the storms and seek safety. Do this in business too. Being prudent is always a good thing.

Many people who start a small business fail because they don’t do their homework and put forth the proper effort to make it succeed. The guidelines above will help you to avoid failure.

For those of you with the desire, I challenge you to start a small business. You’ll learn so much and grow as an individual. Good luck in your new adventure !

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Copyright  2007     Leland Pulley