Starting a business is no easy feat. From idea generation to launching, execution, marketing and keeping financial records while trying to satisfy your consumers, are challenges entrepreneurs face alone. Entrepreneurs are risk-takers, and problem solvers and they amount to 582 million of the world’s population. Amidst the risks taken, success is not guaranteed.
Entrepreneurs have a huge impact on the Nation’s Economy and the need to celebrate their impact cannot be overemphasized; thanks to the Ewing Marion Kauffman Foundation initiative on Global Entrepreneurship Week. In more than 165 countries, it’s a week in November dedicated to celebrating entrepreneurs in Nigeria and simultaneously empowering budding entrepreneurs with the skill sets and mindset needed to start and scale their businesses. The 2022 Global Entrepreneurship Week is themed “Unleashing Ideas”, an opportunity for entrepreneurs to unveil their business ideas and identify ways to ensure business success.
The U.S Bureau of Labour Statistics (BLS) shows that approximately 20% of new businesses fail during the first two years of being open. On another hand, 45% fail during the first five years, and 65% during the first 10 years. Starting and ensuring a business succeeds requires more than a great idea. New businesses have failed because of diverse reasons – not investing in the right market, bad location, poor marketing, lack of sufficient funding/capital, inadequate management team, and lack of proper planning amongst others.
The question of how can a small business succeed then arises.
In this article, you will find five top tips small businesses need to succeed.
Top 5 Tips for SMEs to build a successful business
- Well-detailed business plan: It is not enough to have an idea for a business. There is a need to document every plan that you want to execute before the start of your business. A business plan will give direction to your business, and how to structure, start, run and grow your business. Your business plan will include the mission statement, your products and services, information about the organizational team, financial details, location etc. Once you have an executive summary of what your business will look like, you are one step to building a successful business.
- Carry out a Feasibility study: Here, the question of how feasible is your plan comes in. A feasibility study is an assessment of the proposed plan to test if the business will be successful upon execution. There is a need to carry out a feasibility study to allow decision-makers to decide whether the business will yield profit in the proposed location or not. Also, it is needed to decide if the product or services are targeted to the right audience and if the capital is enough to start and sustain the business before they start making profits. This is one of the key reasons why many businesses fail. They forget to access their proposed plan before execution. When a proper feasibility study has been carried out, the result will determine whether or not the business will be in existence or if there’s a need to make some adjustments in the proposed plan.
- Carry out a SWOT analysis: A SWOT analysis simply stands for Strengths, Weaknesses, Opportunities and Threats. Carrying out a SWOT analysis is a vital but easily overlooked step needed to ensure a business succeeds. For a startup business or an already established business, a swot analysis will help you have a clearer view of your current position, maximize resources and create an effective marketing strategy to help grow the business. By understanding the strengths and weaknesses of your business, you are able to deal with internal factors that are likely to stop the growth of your business such as your products and services, employees, customer service approach and many others. On the other hand, opportunities and threats are external factors that help you to identify and analyze your competitors, environment, location, etc. By carrying out a SWOT analysis, an entrepreneur will know where to leverage their strengths and areas to tackle the organization’s weaknesses in order to ensure a successful business.
- Understand the risks and rewards: A small business owner takes calculated risks. They ensure they are well knowledgeable about the risks and rewards of their business. Without a proper understanding of the business risks, it can lead to business failure and financial loss. It is however important for entrepreneurs to pay attention to the risks and rewards of their business in order to ensure business success, profit and independence. Every entrepreneur has to understand the business they are about to venture into to avoid unforeseen circumstances.
- Provide great service and ensure consistency: Successful businesses today are customer-centric. They put their plan and products to attract their customers first in order for the organization to yield profit. A consistent business approach is the key to achieving a successful business.
No successful business is built in a day. You will need to be patient, persistent, and consistent and implement new strategies that businesses adopt for your startup business to succeed. As the trends are evolving, your business plan needs to evolve as well. The best time to start building a successful business is now by adopting the five tips listed above. Enrolling in an entrepreneurship class online is also important as you are provided with mentorship opportunities and a step-by-step guide to start and scale your business.