Small Business Matters: Stay on top of your game!
By Vernalee
OhioMBE – April 15, 2014
Being a President / CEO of any sized company is an all-encompassing responsibility. The company’s success or failure rest on your shoulders and just like the fictional Atlas, you carry the weighty company’s issues with you wherever you go. Size determines resources, or lack thereof. Thus, presidents of small businesses lack the extensive line up of organizational layers of executive and middle managers. Often, small business presidents occupy the roles of many of these positions themselves. Business failure can be lurking around the corner if careful steps are not taken.
To increase your business success rate, there are a number of tools at your disposal. Let’s examine several that should be components of your operational portfolio.
1. Establish a Board of Directors. This process will provide small businesses the built in experience of expert opinions and authorities on matters essential for growth. Legal, human resources, accounting; successful practitioners in your trade and corporate / small business executives should be included to your selection pool. Their resumes bring substantial value.
2. Establish relationships with a Banker. Don’t wait for a financial disaster to occur before you have a chat with your banker. Get to know them. Build relationships with them. Invite them out to your shop. Just as the money they represent, they are “worth their weight in gold.”
3. Retain a good accountant and attorney. Sound financial guidance and solid legal advice strengthen your decision making. Accountants and attorneys are essential. Follow the slightly altered American Express slogan, “Never go into business without them.”
4. Hire smart. A competent team is a critical ingredient that will help you establish / maintain operational efficiencies. The right team can take you to the next level. Continuing education and training are equally important.
5. The system is the solution. Establish comprehensive management, human resources, marketing, financial and operational reporting systems, practices, and procedures. They will identify issues and enhance your levels of operational proficiencies. Your goal is to increase your odds of staying in business, alongside becoming and remaining profitable.
6. MBE Certifications. If you qualify, become certified. Register your product / services to receive bid notifications, pertinent information, and other forms of assistance.
The secret is to not become a statistics. Many small businesses have failed not because of an absence of expertise or hard work. Quite the contrary. Being undercapitalized by insufficient cash flow, a lack of solid business practices, and incompetent staffing – lead the list.
According to the SBA, small businesses – defined as independent businesses having fewer than 500 employees – make up 99.7% of U. S. employer firms; account for 64% of net new private sector jobs and 49.2% of private sector employment. However, the failure ratios for small businesses tell a different story. The same SBA documents reveal that only half of all new establishments survive five years or more with 10 – 12 % closing their doors each year. The formula of success lies with variable critical factors.
Among them are: Buy low, sell high; think like an owner, not a worker; subscribe to the cliché that the client is always right; market incessantly; respectfully treat your employees; make quality customer service a priority; and deliver a superb product / service. Adherence to these simple tenets won’t eliminate problems, but it will make survival easier as you managerially stay on top of your game!
Vernalee is a respected entrepreneur in Cleveland and Columbus, Ohio. As President of Lee Enterprises Ltd., she helps her clients achieve success in the areas of human resources, supplier diversity, marketing, business development, and communications. Lee is also a freelance writer for a number of publications. Soon to be released are her books, “I’m Doing Me” and “Stuff we talk about.” Follow Vernalee at www.stuffwetalkabout.com and www.vernalee.com. She can be reached at verna@vernalee.com.
