Launching a business is easy but running it profitably is hard.
There are 80 new companies created every hour so the competition is getting tougher with every passing day.
Moreover, two out of ten startups fail in the first year of their business making it extremely crucial for small businesses to take the necessary steps to make it profitable.
Here are the top five things your small business needs to be successful:
1- A Powerful Business Plan
A perfectly written business plan is the first requirement for success. It is crucial for a small business to have an executive summary of your business.
There should be a document in place that lists your business goals and how you plan to achieve them. KPIs should be a part of your business plan because they will help you to measure success.
It is recommended to keep an open-ended business plan because your business plan needs to be updated depending on the competitors, market stability and customer willingness to purchase a product or service.
2- Better Communication with Customers
Powerful communication is one of the ingredients of a successful business strategy.
All companies must know how to communicate effectively with the customers. It’s no wonder that customers always prefer companies who listen to their queries and respond to them on time.
You certainly need some tools to communicate effectively with your customers.
A VoIP phone system is your best investment because it lets you create a virtual receptionist that can assist your customers 24X7. Please refer to the Ooma’s guide to VoIP phone systems that will assist you in selecting the best VoIP system for your small business.
3- Top Class Marketing
Marketing is the lifeline of your small business. You need a constant flow of leads to grow your business revenue.
As small businesses have a limited budget, you need to carefully spend your funding on marketing.
You can leverage the power of marketing channels like SEO, PPC, social media and affiliate marketing. SEO is helpful in improving the overall branding of your business. There are three things to focus on to improve your business presence in Google. Pay attention to copywriting, target long tail keywords, and optimize your website for Google local.
Classifieds on newspapers or distributing flyers are also good options to spread the word about your business.
It is recommended to study the demographics of the channel before you finalize it to promote your products or services.
4- Good Recruitment Habits
I have seen several companies getting out of business due to poor recruiting habits.
Good recruitment habits are a must if you want your business to succeed in the long run.
Successful recruiters follow the below habits to hire the best candidate for their business.
- Plan your daily schedule that fits your personality. Aim to hire candidates at a time when you are most productive like in the morning or in the afternoon.
- Take your time to understand the candidate and their skills. Do not look at the CV to make your decision. Give them tasks to perform and judge them on the basis of the assigned tasks.
- Be patient and avoid making a decision hastily.
- Adopt a modern approach and scan the social profiles of the candidates to understand them better.
- Be professional in your approach and leverage the power of referrals.
Remember, your employees can make or break your business. Take your time to choose the perfect candidate that fits your business needs.
5- Effective Cash Management
Cash management is important to maintain liquidity which is necessary to manage your business smoothly.
Perform a financial ratio analysis to measure your liquidity. The quick ratio should remain positive or else you need to find a way to add cash to your business.
Prepare a monthly cash budget because this will help you in identifying as well as monitoring the channels that brings in cash or takes the cash out. If the quick ratio is negative, you should review the cash budget register to minimize the expenses.
As an entrepreneur, you definitely want your business to be successful. Managing your expenses intelligently and maintaining your inflow of cash is crucial to keep your business running. Follow the five things discussed in this article to take your small business to the next level.