5 Tips for Success in Starting a Small Business
Updated: May 17
Starting a small business is a massive but rewarding undertaking. Part of starting a small business is doing things in a way that makes the most sense to you, but a little guidance can help as well. Consider these tips for starting your own company and incorporate them as needed:
1. Recognize your strengths and weaknesses
Every small business owner has certain skills, abilities, knowledge and experience that give them an edge when it comes time to build up a business and start operating it. However, no small business owner is so adept that they can be an expert in every single process related to developing a new company.
While you’ll have to wear a lot of different hats, especially during the business’s earliest stages, don’t place too much of a burden on yourself for too long or expect yourself to dive into a highly complicated task with no prior training. Develop a strong understanding of your skills and weaknesses so you know where to best focus your attention.
Don’t be afraid to learn how to handle new responsibilities and workloads – it’s essentially a requirement for growing small businesses. You also shouldn’t shy away from working with business partners, family members, employees, independent contractors and others to address major needs and make sure important concerns are handled successfully.
2. Start with a simple business plan and grow it as needed
One of the first things you should do as a small business owner is develop a business plan. It’s vital that you develop this essential document to steer future work and hold yourself accountable, but it’s also important to not go too in-depth during the early stages of developing your concept. ABC News contributor Tory Johnson said a simple business plan is often the best approach when in the beginning stages of developing your organization.
A shorter plan, about one page or 500-600 words, can give you direction without requiring you to answer questions that won’t have solutions presented until later on in the process. Johnson suggested focusing on your products or services, target market and customers, basic prices and costs and the work needed to turn the concept into a reality.
As work progresses and your idea moves closer to actual operations, you can expand your business plan. Over time, include more accurate estimates, actual costs, longer-reaching projections, mission statement, company summary and other elements commonly seen in fully developed documents.
3. Focus on something you have a passion for
Having a passion for something doesn’t necessarily mean it’s your all-time favorite activity or type of business. It does mean that you won’t quickly grow tired of running that type of business, that parts of it appeal to you and, ideally, you can use some combination of existing knowledge or skills related to parts or all of the operation to your advantage.
Finding an existing need and targeting it is a major element of starting a successful small business, whether it’s providing accounting services to other companies or setting up a bakery. Pairing that need with something that excites, interests and motivates you can lead to substantial development and returns.
This piece of advice is relatively basic and most useful when deciding what type of business to start as opposed to getting a specific concept off the ground. Focus on your passion early on and pair it with a strong business plan to give yourself the best chance of crafting an enduring and popular organization.
4. Understand your target customers and existing market
It’s possible to develop an excellent business concept and deploy it in the wrong area. That’s why it’s important to understand the area in which you want to start your small business as well as your target customers. An idea that could work out very well in a large, densely populated area simply may not get the amount of foot traffic or number of customers it needs in an area with fewer residents.
Assessing the market for your products or services, seeking out the presence of potential competitors and conducting an assessment of how your business will hypothetically perform can all move your idea in the right direction.
You can also look to competitors and similar businesses for ideas and guidance, although indirectly. Visiting their stores, looking at their websites and marketing materials and other intelligence-gathering initiatives can help you fill in pieces of the puzzle.
5. Don’t be afraid to ask for help
Even when a business is on the right track, unexpected issues and chances for growth and improvement can quickly pop up. Addressing these problems and opportunities is critical for long-term stability and prosperity. As a small business owner, you shouldn’t be afraid to seek out alternative business financing in the form of a small business loan from Monarch BA. Our fast and easy application process can give your business a quick decision and the funds you need in just days.