How To Run A Successful Small Business

The world is full of small business gurus who claim to have all the answers when it comes to learning how to run a successful business, but in my experience most of them are clueless. They know how to sell, which explains their teaching success, but most of them have never even run a real business that provides meaningful goods or services to the public. The truth of the matter is that every situation is a little bit different and what works for one business may not necessarily work for another.

For example, let’s say that you want to learn how to run a successful business in the home improvement industry. Your strategy would be wildly different from somebody who wants to improve the revenue for their restaurant business. They’re two completely different animals, and should be treated as such. I guess that’s why it always hits a nerve with me when I see these guys that try to pitch their business success packages and programs to every single business owner regardless of what kind of business they run.  There's not a single, legitimate one-size-fits-all solution out there that is worth your time - I promise you.

That said, there are a few generalities that almost every kind of business should adhere to if they want to have a viable and thriving business. These notions are not new or groundbreaking, but they are a proven, basic framework from which you can flesh out the rest of your strategy for success. To ignore them is to take a roll of the dice with your company. To embrace these ideas is to take a huge positive step in the right direction for your enterprise.  I'm all for originality and doing things differently, but just trust me that there are some old-school rules that you absolutely must follow.

For one, common sense should tell you that maximizing revenue is job number one. You might be surprised how many people don’t give this enough consideration. There are many ways to marginally improve your revenue every time you sell a service or product. One way is to up-sell whenever possible. For example, if you run a house painting business then try to up-sell other services like trim repair, light installation, and closet enhancements. If you run a small bakery then have several baskets full of small candies and sweets on the counter next to the cash register and ask every customer if they’d like to buy some as they’re checking out. Most people won’t but some will, and these are the kinds of small revenue bumps that can really add up in the long run.

Second, your next most important responsibility is to keep costs down. By lowering your costs you will compound the effect of your revenue-increasing efforts to deliver the best possible profit margins. Like revenue, the little things count. For example, instead of spending obscene amounts of money to have a landscaping crew take care of the exterior areas around your restaurant you could tell the cooks that they need to roll up their sleeves and mow the grass whenever the kitchen is slow. Or you could devote yourself to spending an hour each week to find better deals on product than what you’re currently getting. Make some calls around town and see if that cleaning chemical that you always use can be had for cheaper someplace else. There really are endless ways to cut costs, and you’re limited only by your imagination.

Finally, respect your employees and pay them what they’re worth. This may sound counterintuitive but believe me when I say that when you take care of your people they will take care of you. You might think that by cutting wages you can save a buck or two, and this might be true in the short run. But in the long run all your most valuable and hard-working employees will leave and find another job that pays better. This almost always leads to poor customer experiences which ultimately results in lower earnings for your company.  As an example, if you're in the process of starting a construction business then do all you can to find the best, most skilled tradesmen in the city.  You'll pay them more but you'll recoup the cost in the form of more referrals and greater work volume.  So I would say if there’s one area where you splurge with your money it should be on quality help.

Those are some of the basics for running a stellar small business. Of course there’s much more to it but you could really fill a whole college semester with this topic if you wanted to. Adhere to the general ideas of increasing revenue and decreasing costs, appreciate your helpers, and you should be well on your way to having a very successful business on your hands.