If you’re planning to have your own business or be self-employed, or if you already own a small business, I highly recommend you learn all aspects of running a business. You won’t be able to rely on your accountant, solicitor or staff for all the expertise you’ll need to run the business successfully. You need to know all the basics of business including how to make money. So keep reading and I’ll tell you how.
Be a Salesman.
Setting up a business is relatively easy however marketing it to potential customers is another story. Many business owners think their great ideas will be enough to keep the business profitable — but there’s more to it than that! You need to be a good salesman too. You must know how to sell sell sell!!!
You need lots of planning including good advice on how to capture your market, create leads, convert them to buyers, and then make them want to come back and buy again. Collect as much contact information as you can (not just from people within your social circle or existing clients), but realise you’ll also need to learn how to talk to strangers and exchange contact details with them.
Build Your Client List. You need to build your list because “no list equals no business”. If you’re not a born salesman, learn how to improve. Otherwise be prepared to hire a good salesman or get a marketing company to help you promote your products and services. I wish I’d known that when I set up my first business because I never had a proper marketing plan.
I thought it would be like having a dress shop where customers would simply be walking by, see the lovely garments in the shop window and pop in to buy my product. What I was thinking back then? For the first month I struggled to get a single customer to walk in to my gym. Thankfully my nephews helped me out by doing house to house flyer drops and my business soon picked up.
Your client list can be the equivalent of ‘going the extra mile’ if you know how to use it properly. You can use Word & Excel mail merges to create free, easy to send customised emails to customers on your client list. Regular promotions, reminders or follow ups to all your clients can result a ripple effect when they refer your products and services to others. Make sure your list or database is working for you and not just sitting idly in your computer.
Keep Costs Low. My business was my new baby. I got excited and pampered the premises with brand spanking new office furniture and appliances – not good! Learn how to skimp on costs when setting up a business especially when you don’t yet have a cash flow.
Learn to source second hand office furniture from recycle shops or go on TradeMe or Ebay. Look for bargains and avoid unnecessary expenses. Start simple and basic, buy only what you need to get your business running. You can buy other stuff later once you’ve got steady cash flow week after week.
Don’t Discount – Add Value. I thought I could attract and retain more customers if I gave them discounts – big mistake! New people only came when we had special promotions offering a range of discounts. We ended up attracting seasonal bargain hunters which was not good for the long term viability of the business. That’s where good sales skills are needed. I was good at talking to people but too soft at asking them to pay the full value for the great service we offered.
Test and Measure. You need to track the results of all promotions so you can repeat the ones that work and dump any unsuccessful ones. For instance why keep advertising in the local newspapers if your email marketing is providing you with the bulk of new customer walk-ins. Look at the trends and respond accordingly.
Be an Entrepreneur. Always keep thinking about new ideas to increase the number of your customers and increase your income. These days it can be quite easy – if you can’t think of anything yourself – simply Google it! You’ll be surprised what ideas you can get.
Learn it first or get a Coach. There are so many things we don’t know when starting a business and it can really clutter your mind trying to figure it out for yourself. Before you set up your business, go on a business course.
You don’t need to do a 4-year university degree – there are block courses lasting from several weeks to several terms available in tech schools or you can look for something online. But if you’re not fussed about learning this yourself, get a coach or business mentor. Sometimes you can get these services free from a government funded group.
Beware of Shafters. When you’re new to the small business industry you’ll be approached by lots of people offering to help your business. Always step back before you sign up for something. Do your research first, ask lots of questions, ask other businesses, ask for references and I’ll say it again – use Google to find out more about the company or service being offered to you!
Been there done that! Yes we have been shafted a few times and it hurts! You can’t always avoid them, they’re always lurking in the background, just waiting for an opportunity. And they will approach when you are vulnerable. So always step back and do your homework – Due Diligence Rules!
If you ask me whether I’d have a business again, my answer would be YES!
But this time I’d be much better prepared because I’ve learned from my mistakes, I know what I need to do and I’m smarter. I found this article called 10 Tips for a Strong Start by Brad Sugars, which is very useful for self-employed small business owners because it’s simple and easy to understand. It’s great advice!
