Owning a small business can feel like a daunting and difficult task, especially when you look at the industry giants. It can be hard to know how you can even compare let alone survive beside them. And I won’t lie to you, it won’t be all rainbows and sunshine.
Keeping a small business afloat, particularly during these uncertain times can be chaotic and challenging. But with that being said, a small business is by no means doomed from the get-go. Not at all.
In fact, many small businesses are currently booming with success. However, to ensure success, there are certain things that you’ll need to do.
Most of the small businesses that you see doing well will all have a few things in common. Simple yet effective tips and tricks that keep them popular and profitable.
In this article, I’ll be detailing the 8 most important key factors to consider or implement to ensure that your small business can survive.
7 Things That Will Ensure Your Small Business Survives
1. Reviewing Your Budget
One of the biggest mistakes you’ll see small businesses making is not creating and strictly sticking to an appropriate budget.
Knowing all of your outgoings is incredibly important, to pretty much any business, but especially to small businesses. One wrong decision can send your business under so sticking within your means is imperative.
You’ll want to create a critical breakdown list of all of your goals and objectives for your business for the upcoming year. From there you can determine exactly what you’ll need to meet those goals and set aside a budget accordingly.
For smaller businesses, you want to try and research ways to keep your resources and spendings down as little as possible.
There are many ways to cut down costs or even do things completely free. For example, if you want to boost your social media presence, you don’t necessarily need to spend tons of money on an expensive marketing campaign as there are many ways to do so yourself that will only cost you your time and effort.
2. Staying Social
Sticking with the theme of social media, being social, and having a social presence is so important for smaller businesses.
Think of it this way, people are already well aware of larger businesses like Walmart or Target, but how do you get people to know about your brand? Through social media. That’s how.
You want to interact and engage with your target audience and followers and try and build relationships with them.
What kind of service or product can you deliver that bigger brands cannot? What more personal interactions can you provide?
Think local too. Try to target local Facebook groups in your specific area and consider doing things for the community to raise awareness for your brand.
You could sponsor a local sports team, do a knit-and-natter type event, or host a book club. Anything that promotes your brand to the community.
3. Know Your Customers
Understanding your niche customers is imperative for a small business. When you look at your business from the eyes of your customers you will implement better marketing ideas, better promotions and deals, and better content in general.
You’ll want to try and reach new customers while also keeping your pre-existing customers happy too. Your loyal customers will be your lifeline, especially during more uncertain times, so it's important to show your loyalty to them too.
It is good practice to have them either ranked by attribute or analyze your products by popularity. Sending out surveys for feedback to ensure you are keeping them happy can be effective, as can marketing emails such as birthday messages and abandoned cart emails.
4. Always Adapt
Life is fast-paced and ever-changing, and as a small business, you need to find ways to keep up. You need to move with the trends and always be adaptable.
For example, you may slowly find yourself moving into different areas than your initial start-up as certain products prove to be more popular. There’s no point sticking with products that aren’t being purchased, you must adapt.
The same goes for social media marketing, and pretty much every other aspect of business. You have to follow where the money is. You have to follow what is making your customers happy.
And sometimes, you may have to adapt your budget, plans, strategies, or even business models according to your current situation and circumstances.
It is always a good idea to have a small nest egg of fallback money for worst-case scenarios where you have to adapt purely to survive.
Always keep pushing forward, and always think of new and innovative ideas to try and keep your business afloat.
5. Try Subscription Models
You should never turn your nose up at a subscription model. Regardless of whether or not you offer services or products, this model can be a real lifeline for many small businesses. And in fact, many of the most successful online businesses use this type of model.
The best thing about a subscription model is that it ensures a contracted steady inflow of profit that you are sure will appear each month. It’s a way to generate more regular income rather than depending solely on spur-of-the-moment spending decisions.
Plus, you tend to find that customers love them too. It’s a great way to consistently receive the goods you want without having to repeatedly go through the shopping and billing process.
6. Always Look To Improve
If you are stagnant you’re sinking. While it may be tempting to take a step back and take a break during slower times, it can actually be the nail in the coffin for smaller businesses. It is during this time that you should be brainstorming as many new survival strategies as possible.
You want to take a look at your business and analyze how you can make it more accessible for your customers, how can you improve your services and products, and what steps can you take to stand out from the competition.
You can even ask your customers these questions themselves and create plans based on your findings.
But nothing is ever perfect, and the work is never finished, there is always something that can be improved.
7. Protect Your Assets
One of the most important things to do is ensure that you protect your assets from any damages. Now, many small businesses thrive and survive, even in today's climate, but there is always a risk.
I would love to tell you that there are certain steps you can take to ensure that nothing can stop your business, but I won’t lie to you. And anyone who tells you it can never happen is lying.
There are two many variables that can be completely out of our control to ensure there will never be an issue. You could do everything right and then an earthquake could hit and destroy your store. Someone could break into your store. The economy could crash.
They’re not sure to happen, they’re probably not even likely to happen. But they are possible. And as a small business, you won’t have spare assets so protecting yourself against this possibility is imperative.
Always speak to a financial advisor before beginning your venture to find the best ways to mitigate any risks that could cause significant financial issues.
Final Thoughts
It can feel pretty scary starting up a small business, but remember, every business had to start somewhere.
And if you have the dedication, discipline, and passion to ensure that your business does well, then you really could have a viable and successful business on your hands. And as long as you follow these tips and tricks, you are sure to find those sales pouring in!
Good Luck!