3 Ways to Put Your Small Business on Track for Success
Let’s start with this: you’re never too young to start and run a business. Of course, this doesn’t mean you should necessarily fulfil your fantasy of telling your evil boss exactly what you think of him or her (or it), and launching a start-up tomorrow morning. But it does mean that, unlike the old days, you don’t have to be well into your 20s, 30s or 40s before joining the ranks of business ownership — and maybe taking your place among the business elite.
Still not convinced or inspired? Behold this list of entrepreneurs who made over $1 million before age 20: Ashley Qualls (founder of WhateverLife.com), John Koon (founder of Extreme Performance Motorsports), Tyler Dickman (founder of Cooltronics), and of course: Facebook CEO Mark Zuckerberg, whose net worth right now is estimated $66.7 billion dollars. I don’t know about you, but I’m safely guessing that there’s a lot in life to LIKE when you’re worth $66.7 billion dollars.
So yes, you may not generate Zuckerbergian-like wealth in the near future (but then again, you might!). But you can certainly launch a business, or take your existing business to the next level. Here are three ways to get and stay on track for success:
- Develop an Outstanding Business Plan
There are business plans — and then there are outstanding business plans. What’s the difference? The former are superficial and lightweight and are essentially useless (or maybe even counterproductive). The latter are robust, detailed and complete. They take longer to put together and you’ll probably need support and input, but it’s definitely worth the time. As the old saying goes, a failure to plan is a plan to fail.
- Have Enough Working Capital
Going into debt to launch or elevate your small business is fine — provided that you do your homework, and ensure that your total cost of borrowing and repayment terms are reasonable and sustainable. If banks aren’t returning your emails and phone calls — which isn’t unusual since they’ve severely dialled down small business lending in the last few years — head into the alternative lending marketplace. There are several established, credible and reputable firms that will be happy to see if they can help, such as National Business Capital.
- Be Very (Very!) Careful with Partnerships
The idea of running a business with your BFF or a family member might sound great — and ideally, it will be. But ensure that you choose partners who are going to add value, resources and other assets to the enterprise. Otherwise, it’s just a matter of time before tensions mount, tempers flare, and soon-to-be-ex partners are looking for ways to disengage. In some cases, things get so acrimonious and confrontational that it makes a divorce seem like a proverbial walk in the park.
The Bottom Line
If your dream is to run your own business — or take put your current business into overdrive — then go for it! Just make sure that while you reach for the sky, that you keep your feet on the ground. The tips above will help you do both, and before you know it, you could be hanging out with Mark Zuckerberg (bring your own hoodie!).
*This is a collaborative post.
Very useful tips for anyone starting their own business or considering business partnership, I like the saying you used – a failure to plan is a plan to fail. 🙂
Thanks for the tips. These are very handy tips and helpful.
Whatever business that we may have, always put agreements in writing. You can’t trust verbal agreement even its your own verbal thoughts.
These are definitely essential tips to keeping a small business afloat! I am amazed at how many small business owners don’t have goals and objectives written down, and reviewed frequently. It’s such a crucial step to success.
Very helpful and smart tips. I completely agree with you about being careful of partnerships (learned from experience on that one!).
I did try to do business with my really close friend because I thought it would be easier to talk freely with her, but it turned out really wrong because this business is totally different from our friendship. NEVER gonna do that again..
Oh no not good – I hope your friendship is still OK 🙂
These are awesome tips!! I am always so very nervous and hesitant when it comes to potential partnerships. I think that is my biggest fear in growing my small business.
Really great tips especially the partnership one! Have to study really well with whom will you create your company!
Great tips. Staying organized and having a great business plan can really help get things going.
These are great tips. It is important to make sure you have enough working capital. That is the reason most businesses don’t succeed.
I totally agree, you should be very careful going into a partnership. I personally would never do a partnership. I prefer to work alone!
I agree that you are never too young to start and run a business. You are also never too old, so even those of us over 30 should still dream big lol!
#3 is a definite must! No matter how close you are to someone, things can still go wrong. I wrote a children’s book a few years back and had a friend make some artwork. We didn’t talk about commissions until it was complete. She wanted 50% of every sale. After taking into considerations the cost of printing the book, that would be negative. Luckily, she was not part of the business and we didn’t have a formal contract so I was able to get out. But, that cost us our friendship. Haven’t talked to her since.
Oh no it is hard isn’t it 🙁 I am so sorry it cost you your friendship.
such a simple post, but filled with lots of truth. Thanks for sharing
These are great tips. Especially for bloggers. I mean, I view my blog as a business.
One needs to check a lot of things before going into a partnership.
I have heard some bad and good ones
YES – saving for later reading and re-reading <3 Thank you for sharing
Good advice to keep in mind but also some good motivation! I agree that you have to be SO careful with partners because more often than not it does not end well.
I think you are absolutely correct with being careful with partnering up with family. Some families have family businesses and can do it. For me, I can’t work with family. We are too stubborn and all want to be the Alpha. I think partnering with friends or family can definitely damage relationships.
I have a degree in Business Management. The one thing I have always learned, have things in writing and make sure you stick to a firm plan. Have your finances in one place away from your normal income and make sure ALL money is accounted for each month. The last thing you want, is the Tax man sending a nasty bill through the mail and not be able to cover that bill.