Whether you are starting your first business or a seasoned entrepreneur, questions never end.
Looking at it, asking questions is actually a good thing.
It helps you not be content with the face value of things and situations, which means you are sharp between the ears.
See, to start and run a successful business, you must cultivate the culture of digging into the roots of things.
And while everyone else is getting satisfied, you are going a mile deep.
As they say, there is no traffic at that extra mile, and that is where the goldmine lies.
To help satisfy your curiosity, we scoured the internet for answers to questions about small businesses.
What is the difference between large business vs. small business?
You must have heard about small businesses and these other big corporations, what makes them different?
Well, besides the size of assets, small businesses and large businesses have different financing as well as legal structures.
This is what it means;
Even though both types of business may be targeting the same market, thus offering the same services, one or the other has more resources to cover vast areas fast.
For example;
Small businesses produce fewer goods as compared to large businesses, thus requiring fewer resources.
This means that a small business needs less capital to start and run as compared to a large business.
Additionally, a small business can either be a sole proprietorship or an LLC.
As such, the owner is responsible for business liabilities to some extent.
On the flip side, a large business can be a limited company.
This means that the company operates as a separate entity from its owners.
For this reason, in the case of a lawsuit, you cannot follow the assets of the owners, which is not the case in a small business.
What makes a small business successful?
This another of the most asked question about starting and running a small business.
Here is the answer;
Whether small or big, a business is deemed successful if it satisfies or solves a need in the market.
It is as simple as that.
If you wish to start a successful business, you need to assess the existing need within a target market.
And then create a product that adequately solves that need.
To do that, you first need to understand your target market.
Who are they?
What do they do?
What are their pain points?
With these insights, you can now move onto the product development stage.
It doesn’t end there.
You need to gather insights into how your solution is doing in the market, and whether the is actually doing what it is supposed to.
After delivering your product to the market, that’s not the end.
You need to always be in touch with your customers to get feedback.
To make a small business successful, you need to always be improving and learning from mistakes.
What are the most successful small businesses?
Probably one of the most searched questions about small business.
Why?
The majority of people have learned that to make money fast, you need to make fewer mistakes.
For that to happen, you don’t need to reinvent the wheel.
With that said, here are some of the most successful small businesses you can start today;
- Food truck operation
- Dental practices
- Landscaping and gardening
- Waste removal and haulage
- Phone or gadget repairs
- Tutoring services
- Web design
- Personal training
- Cleaning services
- Courier services
- Blogging
- Affiliate marketing
- Social media services
- Virtual assistant
Another most successful small business can be found online.
In fact, starting an online business is the fastest way to financial freedom.
All you have to do is;
- Pick an idea/niche/industry
- Create a website (learn how you can get a free website plus a domain).
- Start producing content (articles or videos)
- Monetize your site through ads or selling products
- Be consistent.
Better part?
An online business doesn’t require much capital.
In fact, some online businesses like affiliate marketing can be started with zero dollars.
For example;
You can join our affiliate program now and start earning a 20% commission every time you refer someone to use our services.
What causes small businesses to fail?
We have looked at what makes a small business successful.
You may wonder, what brings it down?
From what you already know about what you should do to have a successful business, it is safe to assume that if you fail to do that, your business is more likely to fail.
For example;
If you fail to listen to your customers, they will run away, and you are left with no one to buy your products.
Additionally, the fate of any business is sealed the day you pick the idea.
See, if you just rush in and let the emotions run high about the business idea, you are setting yourself up for failure.
Instead, after getting an idea, your next step should be to validate if the need actually exists.
And then look at its feasibility.
Failure to do this puts you at risk of losing your invested time and resources.
Other things that can cause business failure include;
- Mismanagement of cashflow
- Inadequate sales and marketing strategies
- Weak business model, etc.
What is the correct way to manage a small business?
Having talked about what makes a business fail, the question is; how can you manage a small business?
Your management style can make or break your business.
Why?
It is because of your leadership style, decision-making structures, and systems you have put in place to aid in delivering your promise.
Management is what keeps all these moving parts together, thus empowering you to achieve your goals.
With that in mind, here are some tips to develop an effective management style;
- Always manage your finances and business accounts well. This is the engine that keeps the business going.
- Have a detailed business plan. By doing so, you are setting up your business for growth
- Reduce all small business expenses. Only engage in things you need and that can help move you closer to your goals.
- You don’t have to do everything by yourself. As such, consider delegating tasks that take up too much of your time. Places like Upwork and Fiverr can help.
- Improve quality by investing in your employees through training
- Set up reward systems for your team to cultivate motivation and quality output.
- Make sure you are operating within the law.
- If possible, rent instead of buying.
- Always study the market in order to pick up gaps your competition is missing.
- Think of ways to always improve your customer service.
Do small business owners work fewer hours?
Here is a rephrase to this question;
How many hours do most small business owners work?
This is a question most people contemplating jumping on the bandwagon ask.
Why?
Because if you look online or anywhere, everyone is boasting on how they are now free after starting their own business.
Go to YouTube and you won’t miss seeing someone selling you the idea of starting a small business to be free.
Is this true?
Well, according to research by The Alternative Board, 80% of small business owners work over 40 hours per week.
In fact, some report working at least 52 hours per week.
Why is it so?
As a small business owner, the success of your venture is wholly upon you.
This means that if you wish to see results fast, you must put in more hours.
And this is why running a business can be more hectic than a 9-5 job.
But there is a catch.
Having a small business means you are in control of your working schedule.
You work when you feel like anywhere you want and earn as much as you want.
That is the ‘freedom’ they always talk about.
How do I start a small business?
We saved the best for last.
Most people wish to start a business but do not have an idea how.
Lucky for you, we have an answer;
- Conduct market research. You should never skip this step. After the idea is born, you should assess whether there is a real demand for the product/service. And also whether it is profitable to satisfy that demand
- Draw your business plan. By doing so, you are simply visualizing where you want to be in say 5 years, and the steps you need to take to reach there.
- Source for funds. While not all businesses require starting capital, having funds helps speed up the process. Consider reaching to family and friends or angel investors.
- Pick a strategic business location.
- Decide on a business structure. Should it be an LLC or Limited? Your choice will affect the taxes and personal liability.
- Pick a business name and claim a domain name.
- Register your business to get all necessary licenses.
- Get federal and state tax IDs.
Follow these steps to start a small business.
Final thoughts on questions about small business
Having the right answers empowers you to make the right decisions at all times.
If you are looking for a free business website, check out this guide.