Each small business is really an individual with individual differences and methods of operation. Yes, that’s what makes so many people start and grow their own business; I applaud the differences but there are a few basics that need to be followed. This past week I had an opportunity to meet with two small business owners, both, in my opinion, have tremendous potential to grow their business. They both shared their desire to grow and had the necessary enthusiasm and belief in the products and services. ( one provides a service, the other manufactures a product).
In our initial interview, I hear a lot of excuses for the lack of greater profitability. I shared my favorite saying; A small business is like a tree, it it doesn’t grow, it dies. Being satisfied with keeping the “doors” open and making enough money to survive is not growth, I don’t care what the economy is doing.
A few thoughts:
- small business management has to be about managing profitability. Everything that happens in a business is tied into the bottom line; every action has to be looked at from a standpoint of current or future profitability.
- there has to be a system in place that consistently measures and monitors the firm’s operating performance.
- most small business owners are very knowledgeable about their service or products, but lack discipline and process in the business operation.
- there has to be a framework, a structure for the overall decision making process.
It’s a 60 – 40 requirement for success. The 60% is the time and effort that you spend designing and implementing your business plan so that the 40% ( product or service you offer) can produce the revenue needed to sustain and grow the business.
We provide a road map and the accountability necessary for a small business to get to the next level, but you have to take on the hard work and and to provide desire to make it happen.
Don’t get stuck inside your own ego, because it will become a prison in no time flat.
Certified Financial Planner
Business Coach and Mentor
Have a great day!