Guide to Small Business Sense

No one ever said starting a business would be easy, but once you make the decision to start one, it’s all you can think about. The following five simple rules can help you build a solid foundation for success regardless of how big or small your business idea:

RULE #1: DO WHAT YOU LOVE
Most people are experts at what they love, why—because doing what you love makes you feel good. It ignites passion. It makes you feel valued, engaged, motivated, and in the business world, ambitious. There are a lot of ideas that can make you money, but if you’re not doing what you love, you’re headed for a lot of headaches. Loving what you do is the steam that keeps the engine of your idea moving forward even when the greatest disappoint comes your way.  Passion for your business will keep you confident, focused and thorough. In short, love it or leave it.

RULE #2: DO YOUR HOMEWORK
I’ve spoken to people with great ideas but no plan to make their idea successful.  Most entrepreneurs have two problems.

• Great Idea. Poor Execution
• Great Idea. Not enough Money

Because you’re an expert, take the time to do your homework and find out if your idea has bandwidth— is it viable enough to make money? When doing your homework you should always:

• Create a business Plan: This goes back to business 101. If you don’t know to create a business plan, now you know and have no excuse. A good business plan can help you develop a clear vision for your business, outline your earning potential, help you plan for potential pitfalls and in a lot of cases help you obtain funding. There are several great business plan templates and examples on the web to help get you started. A variety of business plan software is also available to walk you through each step of creation. I recommend Palo Alto Business Plan Pro, or for those of you who simply don't have time, PlanYourIdea.com offers an affordable, professional business plan writing service.
• Research the market: Are people already paying someone for the product or service you are offering? If so, how can you make sure that what you’re offering helps you stand out ? What’s your competitive edge?
• Find out what your competitors are doing—Know who your competitors are. To beat the competition you need to become the competition. Always stay one step ahead and offer something that your competitors are not. This can be a better price for your product or service or an improved way to deliver more efficient service. Whatever you decide, do the research and arm yourself with knowledge to help you compete and stay on the cutting edge.
• Establish a Realistic Price:  If you’re charging $75.00 for a hamburger, you better be able to sell the value of that hamburger and be prepared to back it up with presentation, statistics, and credibility.  Always remember to put yourself in the shoes of your potential client. If you were that client, how much would you  pay for your product or service? When establishing price, be fair, competitive, and sensible. Always take overhead and production costs into consideration and include that in your decision making process to help ensure you make a profit.

RULE #3: CREATE YOUR IMAGE
What do you want potential clients to say about your company? Your image is one of your most important assets and should not be taken lightly. It’s a fact that we live in a first impression society, and  potential clients will form lasting opinions about your company. Your business  brand will define your product or service, and in many cases, determine whether or not a client will be prompted to call or visit your web site.

• Create a Logo: You can get a well-designed logo for very little money these days. It’s the most important investment you will ever make, so you want it to be credible and say something loud and clear about your company. Not only will it help to differentiate you among your competitors, it will go a long way in helping you establish a solid brand.
• Create Informational Material: Have professional information ready to distribute about your company. This can be as simple as having an informational web site or a simple one-page flyer or brochure. If you’re not a writer, be sure to seek professional assistance with putting together your materials; nothing says, “I don’t want your business,” like bad grammar and spelling mistakes.
• Update Your Look: This doesn’t necessarily apply to everyone, but if you find that your current company image isn’t working for you, it may be time to give your business an extreme makeover. Take time to re-evaluate how you want your company to be seen by potential customers and create a fresh new look or tag line to attract new business.

RULE #4: PLAN YOUR STRATEGY
Just because you think your product or service is great, you’re not the one you need to convince. It is imperative that you plan a detailed strategy to roll out your product or service to potential customers and/or investors. Well-planned execution is key.

• Your business plan is going to play a key role in helping you outline the details behind your business. Your business plan will help you clearly organize and define your overall business goals and will provide detailed insight into how you plan to achieve those goals.
• Your Marketing Plan should include advertising channels that fit your budget, help you gain exposure at the local level, and expand your reach to your primary target audience. Local PR can be a great way to generate buzz about your company and aside from the cost of paying a PR firm, is generally free; In addition, you may also want to join local chambers of commerce, leads groups and/or business organizations to develop strong business relationships for qualified leads and referrals. Business directories can also provide affordable exposure on the web. BiznessDoor.com offers a free, local, basic directory listing and is a good resource for business information. A new marketing trend is the use of widgets that can be posted to blogs or web sites this can go a long way when trying to establish brand awareness on the web. I recommend widgetbox.com if you want to know more. Ideally your marketing plan will include a good mix of several channels; however always refer to rule #2 when developing your marketing plan.
• Your Business Processes keep your business streamlined and help you avoid potential pitfalls. Clients appreciate efficiency and ease of use, so be sure to have processes in place for every aspect of your business.

RULE #5: STAY POSITIVE
Owning a business will test your every emotion and you need to know that not everything is going to run smoothly, but if you’re not careful, you’ll talk yourself out of a lot! Think positive and don’t let doubt or fear interfere with your goals. Keep your eyes open and know that you’ll never have all the right answers, but with careful planning, and a well thought out business strategy, you can build a strong foundation for success.