Five Essential Principles For Growing Your Small Business - November 2, 2017
When it comes to succeeding in growing a small business, many people view success as luck. Some will succeed and some won't. And it's stories like John Mackey's that inspire us to try. Mackey started a small vegetarian store in Austin, Texas, more than 30 years ago and this year sold his Whole Foods empire to Amazon at a price tag of $13.7 billon.
Business author Faisal Hoque points out in his recent Fast Company article that luck isn't what it takes. Small business success comes from five essential elements, which we'll share in this issue of Promotional Consultant Today.
1. Timing is Everything. The timing of your product or service must be right in the marketplace. There must be a need or a pain point that your product or service solves in order to gain interest and traction. If the market isn't ready, then your business will fail or you will need to wait to launch your product or adjust your product to the market needs. As Hoque points out, smaller businesses have the advantage of being able to make choices and implement changes without the exhaustive process and conflicting points of view that slow down major corporations.
2. Brand, Brand, Brand. You need to create a positive experience for your customers to stay competitive. And, if you want to create a scalable business, you must understand just how crucial it is to build brand equity. The emotional attachment that links customers to your product, as opposed to any other, translates into sustainable growth. Hoque shares these basic rules for brand-building:
Choose your target audience. The surest road to product failure is to try to be all things to all people.
Connect with the public. Your objective is to make your audience feel an emotional attachment to your brand.
Inspire and influence your audience. An inspirational brand message is far more influential than one that just highlights product feature functions.
Reinforce the brand image within your company. Make sure employees at every level of your organization work and behave in a way that reinforces your brand image.
3. Scale Your Sales. You also need repeatable sales processes to create a business that can easily grow. It is one thing to sign up a few customers; it is another thing entirely to identify, design and implement repeatable sales and customer delivery processes. According to Hoque, you know your business is scalable when:
You can add new hires at the same productivity level as yourself or your sales leader.
You can increase the sources of your customer leads on a consistent basis.
Your sales conversion rate and revenue can be consistently forecasted.
Your cost to acquire a new customer is significantly less than the amount you can earn from that customer over time.
Your customers get the right product in the right place at the right time.
4. Embrace Technology. Bottom line, it pays to embrace technology. If a small business can identify a genuine need, technology likely exists to fulfill that need both locally and globally. There are few barriers to entry in an age where anyone with wireless can cheaply and quickly access the enabling technologies needed to execute their business model. Put effort into mapping out a plan that ties technology into your operational and business needs.
5. De-Stress For Success. As Hoque points out, managing the success of a small business can be twice as stressful as maintaining a healthy relationship with a spouse or partner, nearly three times as stressful as raising children, and more than four times as stressful as managing your own personal finances. In fact, a Bank of America survey pointed out that 38 percent of small business owners maintain full or part-time jobs while running their own business.
If you're not happy, healthy and motivated, growing your business will be difficult. You also set the tone for everyone who works with you. So, take care of your mental and physical well-being so that you can provide the best of you to the business.
PCT returns tomorrow with more tips for success.
Source: Faisal Hoque is founder of SHADOKA and other companies. His newest book is "Survive to Thrive — 27 Practices of Resilient Entrepreneurs, Innovators, And Leaders" (Motivational Press, 2015). He is formerly of GE, and other global brands, business author and contributor to Fast Company, Business Insider and the Huffington Post.