Six steps to small business sustainability
For the thousands of small businesses that open every year in Australia, only half will survive an initial five years. The reasons for this are many and varied, some beyond the owners’ control, such as unanticipated competition, changes to the marketplace, economic pressures and other external factors. This is all the more reason for small business owners to embrace the things they can control and give themselves the best possible chance of long-term survival.
Style Communications has stood the test of time, currently celebrating its 25th birthday, and running this business has given me a good appreciation of some of the simple but effective tools that can lead to successful longevity. These six simple but effective tools can be summarised as: commitment; belief; getting back to basics; adapting and evolving; marketing; and location.
1. Commitment:
Running a small business takes an enormous amount of energy and drive. Get involved in your business, know every aspect of it intimately and be as h
ands-on as possible. If you don’t know how to do something, or don’t have the time to do it, hire someone who does (such as a bookkeeper to keep a close eye on cash) – but don’t just leave it in their hands; communicate with them and ask them to explain what they are doing. If possible, consider a bonus system for staff. If they have a vested interest in seeing it succeed, they will go that extra mile for you. Remember, the more you put into it, the more you’ll get out of it.
2. Belief:
Nothing beats genuine passion if you want to see your business soar. If you love what you do and truly believe in your product or service, it isn’t “work” and it isn’t “hard”. But passion is something you can’t fake or force but it gives meaning to the “hard work” and is noticed and has a flow-on effect to other staff and customers. Remember, if you genuinely believe in your product, your customers will notice and they will believe in it too.
3. Getting back to basics:
Good old-fashioned customer service and value for money are age-old assets that are appreciated today more than ever. Creating relationships and building bonds with customers, clients and suppliers can be invaluable in competitive environments. Simple things, like knowing your customers by their first names or understanding their unique business needs, helps create repeat business. And giving those customers good value is just as important. Know what your competitors are charging and, even if you can’t compete financially with bigger companies such as the multinationals, highlight your point of difference – it may be your knowledge, quality, experience or indeed, your superior customer service. Remember, it is sometimes the smaller things that count the most.
4. Adapting and evolving:
Regardless of how well your business is doing, it is important not to get complacent or to rest on your laurels. If you don’t keep up with the times and look for newer and better ways of doing things you risk falling behind. Does your equipment need updating? Are there new suppliers in the marketplace? Are there alternative ways of reaching your customers? Can you look at ways of incorporating new technologies, such as social media, into your business? Remember, being seen as an early adapter gives you a competitive edge and may lead to cost savings in the long run while attracting new customers along the way.
5. Marketing:
A good marketing plan can be invaluable to small companies, where brand awareness is just as important as it is in big business. But unlike some cashed-up corporates, you don’t need to spend a fortune to successfully market your company. Marketing is about brand awareness. You have got to keep in front of people’s faces all the time or they will forget about you when they need your product or service. Simple things like networking, letterbox
drops, local advertising and social media, such as Facebook, Twitter and website blogging, can be effective yet inexpensive marketing tools. Remember, constructive marketing in the short-term can create solid business in the long-term.
6. Location:
It doesn’t matter how good your business is, if people can’t find you or get to you, you’ve got an uphill battle from the start. Take the time to select a location that will work for you and your customers. If people need to visit you to do business, pick a site with high levels of walk-by traffic, ideally set among banks and eateries to catch the lunchtime pedestrians. Is there sufficient parking and good access? Remember, if you are too hard to find or inconvenient to reach, even loyal customers will look for easier alternatives.
So while there is no proven formula for small businesses to ensure sustainability in today’s competitive marketplace, a combination of factors, such as those listed above, will give you the best chance of long-term survival.
Be aware of the amount of time, energy and passion required; know your business, your customers and your competition; value your staff and your customers; make the most of what you have and promote it efficiently; plan for the future; and constantly look for new and improved ways to make your business better and more profitable.
Know there will be good times and bad – such as quiet months, lost contracts and the global financial crisis which affected everyone – but don’t give up on your small business dream because where there is a will there is always a way.
And if you are lucky enough to survive 25 years like the team at Style Communications, take it from me, the rewards will be well worth the ride.
Tips for designing your Christmas Cards.
for designing all stationery and marketing material but also incorporates major tools and features from Illustrator. You will be hard pressed these days to find any good designer not using this. It allows for total control over your text and graphics, uses the CMYK colour system as well as Pantone and gives a clean strong resolution base.
