In an unstable economy with more than 9% unemployment and companies that are hoarding $2 trillion in cash instead of hiring additional labor, many people are choosing to leave the so-called rat race and start their own small businesses.
Through our over 30 years of helping small businesses, start-ups, and private consultants to get their starts, we have learned quite a bit of valuable information. To help readers like you, we wanted to offer three tips that we have learned when starting your business.
1. Focus on What You Do Best
There are two business phrases that are increasingly important in a global, hypercompetitive world: Core competency and unique product (or service) quality. If you are going to compete against the big names as well as every other small-business owner with a dream in your industry, then you need to understand exactly what you do best and what no one else is doing - that is your competitive edge (or edges). And every minute spent on paying a bill or negotiating an office-space lease is a minute that could be spent on the actual work that brings in the revenue. Leave the tedious, administrative tasks to someone you can rely on.
2. Pay Attention to Your Overhead
In business, it is far easier to control what money goes out than what comes in. Until you have developed a steady stream of clients and customers, it will be imperative to watch every dollar. Instead of hiring full-time or even part-time support staff, you can use business-support services for bookkeeping, paralegal needs, and customer support. If you do all of these things yourself, you will never sleep. If you hire a new person for each role you may never turn a profit. Using each item on an as-needed basis is a great way to minimize overhead costs.
3. Use a "Real Workspace"
While it may be tempting to sit in your home office in your pajamas with a beer and "Die Hard" playing in the background, such an atmosphere will not impress potential clients and customers, even if you make your basement or living-room office appear as professional as possible when they come around. Additionally, this type of environment will definitely have a negative impact on your efficiency, no matter what you may think! Instead, it is important that you use a "real workspace" to ensure that your office is meant for work and that y ou have all the necessary tools in place to accomplish the tasks at hand.
Using such an environment will provide a great basis for you to grow your business, even if you spend your remaining time at home watching Bruce Willis!