10 Signs You will Succeed as Small Business Owner

July 31, 2011


Many people jump into small business without giving much thought to what is required to succeed. There are number of myths out there about small business that influence their decision about getting into small business.
However, not everyone has what it takes to be small business owner. We think there are special personality traits that you need to have to succeed as small business owner. While some people consider joining MBA to gain business knowledge from this resource about online colleges it also helps to have these personality traits for success as small business owner. We are on the lookout for signs that point to success as small business owner. Watch for these signs in to see if you will be successful.
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How to Grow your Business without Spending a Fortune

July 27, 2011


The great recession of the last 2-3 years has made many small business owners skittish about spending money even if it can help them improve sales in the future. Many of the small business owners are hunkering down to survive till the sky is cleared. They are happy with maintaining current sales and making reasonable profit. While we agree that these are difficult times for all small business owners, you should not have to sacrifice long-term benefits at the expense of short-term survival.
We believe, there are ways to satisfy both the needs of conserving cash and growing your business at the same time. The key is to utilize low-cost marketing techniques to improve sales combined with flexible operations to control cost. We have covered several of these techniques in previous posts. Below we summarize them for your convenience.
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Small Business Lessons from $100,000 Salt and Pepper Shaker

July 24, 2011


I am reading this fascinating book “The Last Lecture” by Randy Pausch, who used to be a professor in Computer Science at Carnegie Mellon University. The book is a compilation of his thoughts and experiences he delivered as a last lecture to the students after he found out that he had a terminal pancreatic cancer with only few months to live. It describes many of his experiences in life – from childhood to the end. I highly recommend this book for summer reading.
One of the interesting incidents he describes occurred during their family visit to Disney World when he was a 12 year old. In that he and his sister buy a salt and pepper shaker for $10 for their father with all of their pocket money. However, before they can give it to him he drops it on the ground and breaks it. Very disappointed, they go back to the store with little or no hope of getting a replacement. To their amazement and disbelief, however, the store employee happily gives them the replacement without any charge even though he explains that it was all his fault and Disney had nothing to do with it.
When his father hears the story he becomes a devoted fan of Disney. He continues to take not only his kids, but people from his volunteer group to Disneyland for many years, spending approximately $100,000 according to his estimate.
There are two important lessons to be learned for small business owners from this incident. First has to do with customer service and the other with employees.
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Are you too old to start small business?

July 13, 2011


When hearing the term entrepreneur most people think of a 20-something, smart looking kid who has just completed high-school or college and is eager to change the world. The images of Mark Zuckerberg or Google founders come to mind. While it is true that many of the famous companies were started by folks when they were in their prime, there is certainly an argument to be made for starting small business by people who are in their 40’s and 50’s.
Popular belief is that many of the people in that age group like to settle down and enjoy their steady lives. But there are number of “old” people who want to try their hands at entrepreneurship and small business ownership. We like to call them “experienced” as opposed to “old”.
So why do we think it is perfectly alright to start small business in 40’s and 50’s? There are number of reasons and they all have to do with what you have collected along the way.
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5 Additional Personality Traits Small Business Owners Need

July 10, 2011


In the previous post we discussed 5 personality traits small business owners must have to succeed in small business. To recap, they are – risk taker, decision maker, organized, delegator and responsible. Those who do not have these qualities should think long and hard about getting into small business or at least find a way to mitigate them.
We think there are 5 additional qualities small business owners need to become successful. In the following we describe what those qualities are and why they are important.
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5 Must Have Personality Traits for Small Business Owners

June 29, 2011


Small business ownership is not for everyone. It takes a special human being to own a small business and be successful at it. However, many people jump into small business without giving much thought to what is required to succeed. Their decision is based on the myths that exist out there about owning a small business.
Before you start down the path of small business ownership you need to think long and hard to see if you have what it takes to be a small business owner. While Some people consider online MBA programs to gain business knowledge it also helps to have these personality traits for success as small business owner. We regularly talk to number of colleagues and clients who themselves are small business owners to understand what personal traits make a successful small business owner. Based on this as well as our own experience as small business owners we have come up with 5 traits every successful small business owner needs. Here they are:
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What do Running a Marathon and Small Business have in Common?

June 12, 2011


I am raising funds for Leukemia and Lymphoma Society (LLS) by running the Chicago Marathon on October 9, 2011. The money raised will help with the research and support for Leukemia patients. You can find my fund raising page here, where you can also contribute money for Leukemia patients.
My conversations with the running coach and fellow runners have made me think about the similarities between running a marathon and operating a small business. Based on my past experience with owning and operating multi-unit franchise, I can see that there are number of things in common between the two. Both require significant up-front planning, both need persistence along the way and both need support group to cheer you to the finish line.
Let’s look at each of these similarities in detail.
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7 Steps to a Great Customer Service

May 22, 2011


A business cannot sustain competitive advantage for long time based on product and price alone. Competition eventually will find a way to beat you on that game. Competitive advantage built on customer service, however, cannot easily be copied. For proof look no further than Zappos.com. Here is an E-commerce company that sells shoes, of all the items, on the Internet. However, with a laser like focus on customer service it is selling a billion dollar worth of them annually!
After consulting with number of small business owners over past several years we have come up with a 7-step process that companies need to adopt to achieve the success enjoyed by Zappos. It will not be easy to follow these principles all the time and success will not come overnight. However, when you do master them you will have a lasting success that your competitors will find difficult to beat.
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Lendio helps small business owners find lenders

May 18, 2011

We have discussed in the past how challenging the last 2 years have been for small business owners who want to borrow money to start or expand their business. The Great Recession of the century has made banks jittery about taking on risk and lending money to small businesses. We have also mentioned some creative ways you can use to start business with little money.
Recently we came across a new startup that aims to help small business owners find lenders who are willing to give them money. The startup is called Lendio The goal of this web start up is to “help small business owners find right business loans in a matter of minutes.” According to their web site they can do this with a simple 3-step process – 1) Business owners answer simple questions about themselves and their business. 2) Lendio looks for a match between your loan needs and over 3,000 banks and other lenders. 3) Business owners apply to multiple lenders on the web site and get status updates.
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How do you overcome Buyer FUDs when selling your business

May 12, 2011

In the previous post we discussed two biggest fears your potential buyers have when they are considering purchase of your business. We showed how you can help buyers overcome these fears and make the sale of your small business go through quickly and smoothly.
In addition to the two fears related to business finances, there are other operational FUD (Fear, Uncertainty, Doubt) factors that buyers, particularly those who have not owned small business before, are likely to have. With proper planning you can help alleviate these FUDs and make the selling process go faster. After all, it is in your best interest to shorten the sale process as much as possible. The longer it takes for sale to complete the more chances of something going wrong and the sales falling through.
Based on our experience with both buying and selling business, we have come up with several questions that are likely to surface in buyer’s head when he is going through due diligence. The sections below document those questions along with our advice on how you can deal with them.
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