While getting a business off of the ground is half the battle, you certainly haven’t won the war. Small businesses are faced with the reality that many fail and to succeed they must continue to grow. Working capital and small business financing are important, but must be used properly for continued success. Here are five small business lessons for success collected from top entrepreneurs.
Cut Costs, Increase Revenue
Lean small businesses that understand how to both control their costs and generate revenue are the ones that succeed in the long-run. While spending some of that venture capital cash on fancy furniture and billboards may be tempting, it’s probably not the wisest choice.
Follow Leads, Ignore Trends
Another strong temptation is to pile onto the hottest trends in the marketplace. While this may provide a quick revenue boost, it will never be sustainable. A more diversified business model might be a better plan, which allows small businesses to have several different revenue streams as well as the ability to test the waters in new markets.
Small businesses should understand that solving problems doesn’t always mean throwing money at them. In fact, when profit margins are tight, this is the best time to find out-of-the-box solutions that will save the company both time and money.
Follow a Vision
Small business owners ought to avoid the trap of going through the motions of “doing business” each day without having a vision for the evolution of their business. Small businesses should know where they want to be at the end of each quarter, each year, and beyond with goals and action plans for achievement.
Identify Problems, Then Solutions
Before investing too much energy into a product or service, small businesses should be certain that there is actually a need in the marketplace that their efforts will fill. This should be the first step or the resources and financing expended on the business will be wasted.
Starting and running small businesses is challenging under the best of circumstances. Without a clear vision, proper management, and the right financial structure it becomes almost impossible. Fortunately, there are financial solutions for small businesses to help as well as some sage business advice for business owners.
Express Capital Financing offers loans to small businesses for a wide variety of needs. Contact us with any questions, or to learn more about our programs and our competitive rates.