Small Business Tips for Long-Term Success

Building relationships with customers results in security.

The failure rate for small businesses is incredibly high. Many small businesses rely on "good products," "good ideas" or "good services," rather than on proper preparation, business structure, funding and marketing  strategy. While having a sound product and/or service is also a must, a business with a great product or service that is not supported by strong, fundamental business concepts will not be successful in the long run.

• Plan for the worst. Businesses that are prepared for financial and public relations crises can handle them in a proactive, rather than retroactive, fashion, which will be beneficial in the long run.

• Know your strengths and weaknesses. When businesses are aware of their strengths, they can capitalize on them and sell the company better to customers and clients. Additionally, knowing weaknesses is equally important so improvements can be made.

• Build a relationship with your customers or clients. Establishing a relationship with customers and clients is essential. Especially during times of economic hardship, loyal customers help keep businesses afloat.

• Don't try to grow/expand too fast. Growing too fast can also be detrimental for a small businesses. Prior to running a huge advertising campaign (or other marketing tactic), businesses must ensure that they have the man power to support the company's efforts if there is a surge in demand.

• Know your competition. Keeping an eye on competitors is beneficial because businesses can not only see what other businesses are doing successfully, but also what tactics other businesses have tried that have been unsuccessful, so they can avoid going down the same path.

Poll Shows Small Business Owners Weary of Government Regulations

According to a recent Gallup poll, complying with government regulations is the biggest obstacle small businesses are facing in the current economy. The poll asked small business owners throughout the country, "What do you think is the most important problem facing small-business owner like you today?" Respondents were not given options to select for the open-ended question. The results are as follows:

• Complying with government regulations - 22%
• Consumer confidence - 15%
• Lack of consumer demand - 12%
• Lack of credit availability - 10%
• Poor leadership, government, president - 9%
• Cash flow - 7%
• New healthcare policy - 5%
• Competition from big business and overseas - 4%
• Lack of jobs - 4%

While little immediate action can be taken to rectify some concerns listed by small business owners, such as poor leadership and new healthcare policy, there is action small businesses can take in other areas. 

Complying with Government Regulations

Small business owners who have won government contracts or those who have attempted to understand the immense amount of red tape involved in the process of contracting with the government. For small business owners who have not yet taken this step, understanding and complying with other regulations regarding taxation, employees, health and safety, and conducting business in general can be a daunting task.

Consumer Confidence/Lack of Consumer Demand

In addition to being tough on small businesses, the poor economic climate has likely negatively impacted the clients and customers of the small businesses that depend on them for survival. Many consumers lack confidence in the economy, which means they are hesitant to spend money. Small businesses can overcome this problem by continuing their marketing efforts during this time. Although marketing does take time and does require money (sometimes), the payoff is well worth it. It is much more cost effective to keep loyal customers than it is to gain new ones. Clear, consistent communication builds lasting relationships.

SBA Women-Owned Small Businesses Contractor Program

If your business has 51 percent female ownership, you could be eligible for new government contracts. On February 4, 2011, the U.S. Small Business Administration (SBA) announced a new contracting program for women-owned small businesses (WOSB). The first contracts that will be awarded under the SBA program are expected to be awarded by the fourth quarter of fiscal year 2011, according to the SBA. Find out if you qualify and learn how to apply. Some economically disadvantaged women-owned small businesses (EDWOSB) also qualify for the program.

Preparing Your SBA Loan Application

If you need a business plan to jump start your company's funding initiative, contact Writings by Design today!