Robert
July 5th, 2001, 20:56
Small Business Murder
By Gorban Tristan
Most new small businesses fail in their first year of
business.
Why?
Actually, there is no reason why they should. There
are scores of resource
and support networks that can help guarantee any good
entrepeneur a solid
chance at success with their new small business. So
why the high failure
rate?
Modesty.
The people who are destined to fail are the same
people that actually knew
how not to fail. But for their own reasons(s) (mostly
pride) they refused
to follow tried and true wisdom. So be it. But if you
really want to
succeed in a new small business venture, beware the
following warnings.
They have been around for half a century, and they
still hold true today.
Take some free advice; otherwise, it will cost you in
the end.
1. Be polite. Simply put, more businesses are pushed
out of business by
the mere act of rudeness. The proof? If you live in a
big city, go to a
small town and visit any merchant. You will be shocked
at how polite and
helpful they are. It's because they have a small
population base to work
from. They mean to keep their customers happy. But
make no mistake. They
will travel many miles to the next town to be treated
fairly and politely.
Same with big cities. Treat a customer badly and they
will gladly go
elsewhere. They have many options, and they will not
even tell you they
have been treated badly. Be polite. It's easy, and it
will make you money.
2. Under-financed. Small businesses that fail quickly
are apt to be under
financed. Put in laymen's terms, if you open your
doors with just enough
money to operate, then you're asking for trouble. You
need operating
capital plus money to get you out of a tough spot.
Make sure your project
is funded properly.
3. Advertising waste. I've seen a lot of people lose
their shirt because
they spent so much money on advertising that cost them
an arm and a leg
and didn't produce zilch. Nobody says you're required
to advertise. Do so
if and when you have to. And if you do, make sure you
advertise your
targeted customers. In otherwards, if you own a pizza
shop, don't
advertise in a major daily newspaper. Use local co-op
mailers or flyer
distribution.
4. Know your competition. MAJOR mistake by newbies.
Know your customers
and know your competition. If you and your competition
are serving the
same fare, you need to change. You need to have an
edge, no matter how
small. If your comp has chili cheese fries, then you
need to have chili
cheese fries with a free peppermint mint on the side.
It's the little
things that drive people back.
5. Correct the bad. If someone complains, address it
quickly and honestly.
If you screwed up, admit it and apologize. If you
didn't, tell the person
you're sorry they perceived the situation that way and
apologize. I've
seen a lot of con artists, but con or not: be polite,
apologize and move
on. Bad word of mouth will destroy your business.
6. Be generous. Do your civic duty. Donate your time
and/or products when
appropriate. The business and advertising you will
receive in return will
reward you tenfold.
7. More is better. If you can afford to open a second
location, do it.
Common sense will tell you that it costs the same to
advertise one
location as it does several. This is why franchises
make so much money.
8. Educate thyself. Keep up with trade news, new
technology and
networking. Join groups, take classes, etc. When you
stay on top of new
changes, your business will prosper on the basis that
you are a leader in
your field. People tend to seek out those who keep up
with new
improvements.
9. Don't waste. There will be countless salespeople
out there trying to
sell you something for your business. Be thrifty.
Resist the urge to buy
personalized t-shirts, pens, etc. because they look
cool with your
business name on them. Money adds up. Again, I stress
to you. Be polite
and helpful above all else. Look at all the immigrants
who run small shops
and speak little English. They prosper because they
are cheerful, helpful
AND polite. We Americans could learn a lesson from
this.
10. The most important lesson? Don't re-invent the
wheel. Read and learn
from other's mistakes. Forget your pride. It will cost
you in the end.
Many people have made big mistakes and paid dearly for
it. Let them guide
you to fast success.
There you have it. Simple enough, right? But let me
add one extra.
Passion.
If you don't have passion for your dream, you will
never succeed. Period.
It's been proven over and over again. So take some
good advice.
Take the free advice and prosper!
By Gorban Tristan
Most new small businesses fail in their first year of
business.
Why?
Actually, there is no reason why they should. There
are scores of resource
and support networks that can help guarantee any good
entrepeneur a solid
chance at success with their new small business. So
why the high failure
rate?
Modesty.
The people who are destined to fail are the same
people that actually knew
how not to fail. But for their own reasons(s) (mostly
pride) they refused
to follow tried and true wisdom. So be it. But if you
really want to
succeed in a new small business venture, beware the
following warnings.
They have been around for half a century, and they
still hold true today.
Take some free advice; otherwise, it will cost you in
the end.
1. Be polite. Simply put, more businesses are pushed
out of business by
the mere act of rudeness. The proof? If you live in a
big city, go to a
small town and visit any merchant. You will be shocked
at how polite and
helpful they are. It's because they have a small
population base to work
from. They mean to keep their customers happy. But
make no mistake. They
will travel many miles to the next town to be treated
fairly and politely.
Same with big cities. Treat a customer badly and they
will gladly go
elsewhere. They have many options, and they will not
even tell you they
have been treated badly. Be polite. It's easy, and it
will make you money.
2. Under-financed. Small businesses that fail quickly
are apt to be under
financed. Put in laymen's terms, if you open your
doors with just enough
money to operate, then you're asking for trouble. You
need operating
capital plus money to get you out of a tough spot.
Make sure your project
is funded properly.
3. Advertising waste. I've seen a lot of people lose
their shirt because
they spent so much money on advertising that cost them
an arm and a leg
and didn't produce zilch. Nobody says you're required
to advertise. Do so
if and when you have to. And if you do, make sure you
advertise your
targeted customers. In otherwards, if you own a pizza
shop, don't
advertise in a major daily newspaper. Use local co-op
mailers or flyer
distribution.
4. Know your competition. MAJOR mistake by newbies.
Know your customers
and know your competition. If you and your competition
are serving the
same fare, you need to change. You need to have an
edge, no matter how
small. If your comp has chili cheese fries, then you
need to have chili
cheese fries with a free peppermint mint on the side.
It's the little
things that drive people back.
5. Correct the bad. If someone complains, address it
quickly and honestly.
If you screwed up, admit it and apologize. If you
didn't, tell the person
you're sorry they perceived the situation that way and
apologize. I've
seen a lot of con artists, but con or not: be polite,
apologize and move
on. Bad word of mouth will destroy your business.
6. Be generous. Do your civic duty. Donate your time
and/or products when
appropriate. The business and advertising you will
receive in return will
reward you tenfold.
7. More is better. If you can afford to open a second
location, do it.
Common sense will tell you that it costs the same to
advertise one
location as it does several. This is why franchises
make so much money.
8. Educate thyself. Keep up with trade news, new
technology and
networking. Join groups, take classes, etc. When you
stay on top of new
changes, your business will prosper on the basis that
you are a leader in
your field. People tend to seek out those who keep up
with new
improvements.
9. Don't waste. There will be countless salespeople
out there trying to
sell you something for your business. Be thrifty.
Resist the urge to buy
personalized t-shirts, pens, etc. because they look
cool with your
business name on them. Money adds up. Again, I stress
to you. Be polite
and helpful above all else. Look at all the immigrants
who run small shops
and speak little English. They prosper because they
are cheerful, helpful
AND polite. We Americans could learn a lesson from
this.
10. The most important lesson? Don't re-invent the
wheel. Read and learn
from other's mistakes. Forget your pride. It will cost
you in the end.
Many people have made big mistakes and paid dearly for
it. Let them guide
you to fast success.
There you have it. Simple enough, right? But let me
add one extra.
Passion.
If you don't have passion for your dream, you will
never succeed. Period.
It's been proven over and over again. So take some
good advice.
Take the free advice and prosper!