Strategy for Small Business: Reconnect With the Visionary

Medium and large corporations spend a lot on outside resources to help them define or refine their organization's vision. But if you are a small business owner, you may see "vision" as one of those slick "corporate" things senior managers do at nice retreat locations. Maybe you have been at those kinds of retreats at an earlier time in your career. Great plans are formulated and lots of enthusiasm is generated, but after the retreat, not much changes. It happens this way at many, if not most, planning sessions. As a small business owner you don't have to go that route. One of your great competitive advantages is not having a large bureaucracy that is seemingly change resistant. You can define or reinvent your business vision, and then go about the work of bringing it into reality, step by step. Many small business owners start with a vision. But the realities of survival and growth, and just getting work done, take over. The original inspiration can get lost. The passion and sheer joy, (along with the terror!) of starting your own business, can become diminished or even get lost, and with it the first vision that got you airborne.

I'd like to suggest that we as small business owners always need a vision of where our enterprise is headed. It is one of the most practical and powerful things you can do as a small business owner. If your vision is alive and well...and absolutely real to you, day-to-day, please take this as encouragement to keep going. But if that does not describe you, and if you are open to consider the role of vision, we hope this short series will be of help. We are talking about vision and its role for small business owners, to include the "What?", "Why?", and "How?" of vision. We'll start with the "What?" of vision next time, but for now may I offer this challenge if you are in the frame of mind to take a second look at the Vision issue. Do a reality check on the current status of your business vision. Take just a little time to reflect on these questions: • First, what is your vision of the business as you look out several years? • How has the vision changed since you started the business? • Do you need to refresh or rethink the "Vision" question? • Is the "Visionary" who started your business (you) still going strong, or is it time to re-energize?

Common obstacles when running a small business

Running a small business can be highly rewarding and yet still challenging. Many small business owners are unprepared for the vast amount of challenges and obstacles that they incur while not only establishing their small business but also while running it. However, the good news is that if you are a small business owner you can educate yourself about these challenges and obstacles and formulate solutions before you even have to deal with that particular problem. Once you have formulated a solution you can simply implement it and continue on with the process of growing your small business. Here is what you need to know about the common obstacles you may find when running a small business-

•Obtaining financing-Lenders typically look at small businesses as high risk when it comes to offering business loans. However, if you are willing to do the work you can present yourself to a potential lender in such a way that will minimize their reluctance to lend you money. You will need to work hard and present your lender with a well written business plan and financial documentation that shows you can repay the loan in full and on time. Finally, do not overlook the need to show your lender that you have the experience and expertise (as do all the management in your small business), to make your small business a success.
•Hiring the right people-Many small business owners find that they have a hard time finding the right people to work for them. The main obstacle often seems to be that small businesses cannot afford to pay the same type of salary and benefits that are comparable with their larger competitors. However, savvy small business owners know that they can often make up this difference by offering potential employees other types of non monetary benefits. Keep in mind that many people want the opportunity for advancement that a small business can offer. However, it is imperative that you are honest about what you can and cannot offer potential employees. The bottom line is that with some time spent on the hiring process you can find the right people who will be willing to commit to the success of your small business for a long time to come.
•Lack of sales-Many small businesses often face the challenge of having lower sales then they expected. This quickly becomes a problem since most small businesses do not have the cash reserves to weather the storm long term. However, there are steps that you can take to improve your sales figures. First of all, do not give into the urge to cut marketing. Reducing what you spend on marketing is not the answer. Rather then reducing marketing you need to take the time to determine where your marketing dollars are working for you and where they aren’t. You want to make sure that every dollar that you are spending on marketing is bringing you the highest possible return on sales. If you are spending money on marketing that is not being effective then stop that marketing method immediately. Once you move your marketing to be more effective you should see a corresponding increase in sales.
•Low employee morale-Because many times employees in small businesses work in close contact with each other it can often lead to low employee morale. Perhaps there is an interpersonal conflict between employees or an employee is bringing their personal problems to work. Whatever the problem it is important that you use your management skills to help your employees get over the slump when it comes to employee morale. This can often be done by the attitude and example that you set but it can also be helpful to make sure that your employees are being well trained so that they know what is expected of them.

All about small business finance

Every small business owner needs to be aware that how well he or she manages the finances of their business will have a direct effect on whether or not their small business is successful. Studies have shown that the majority of small businesses that fail do so because of a lack of management when it comes to the finances of the business. Keep in mind that this is true even for small businesses that were not having any problem making sales. Often times small business owners will not be focusing on the finances of their business and allow themselves to get taken off course by the day to day demands of running their business. This can be fatal for the health of your small business if you allow this to happen. Careful and concise management of your small business finances is crucial for its long term success. Here is all about small business finance.
•Have a written budget-It is surprising to learn that many small businesses don’t have a budget. This is serious mistake. Every small business owner should take the time to put together a business budget. You should not allow yourself to think that you don’t have time or that it doesn’t matter because your business is small. Your business budget is a critical tool for helping you manage the finances of your business. You will use your business budget to determine where you are spending money, how much you are spending, and how much income you are generating. Your business budget will also serve as the basis for your financial planning. Every small business owner needs to make sure that they have a written budget, that it is in a highly visible spot, and it is reviewed often.
•Always be looking for way to cut costs-One of the most common problems that can get out of control quickly is the spending that your small business will do. If you are a small business owner you need to always be keeping an eye on exactly what is being spent inside your company. You should constantly be reviewing every expense to make sure that it is something that contributes to the bottom line. If you are spending money on something that doesn’t contribute to the profitability of your company then you should eliminate that expense. You should never allow the excitement of running your own business to prompt you to spend money on something that you don’t really need. Savvy small business owners who are looking to cut costs know that there are many things that they can lease, purchase secondhand, or even barter for that will keep costs down, as well. Finally, you should always be looking for a better deal. Make sure that you are shopping the necessary costs of your small business around. This way you can make sure that you are not overpaying for anything that you need to run your small business.
•Ask for help if you need it-Many small business owners feel overwhelming pressure when it comes to managing the finances of their small business. However, it is important to know that you don’t have to know everything about business finances. There are many different people that you can consult to help guide you in this management tasks. Consult with your tax preparer, attorney, or other financial professional if you are unsure about any aspect of your small business finances. However, if you are facing a problem with your small business finances it will pay off to consult someone while the problem is smaller rather then waiting for it to get out of hand.

Delegate in your small business

If you are the owner of a small business it is crucial that you learn how to delegate to others. Many small business owners begin the process of starting and running their business themselves and believe that they have all the skills and energy that they need to be successful. This is rarely true. Even before you reach a point where you will need to hire employees you most likely will find that you need to delegate certain tasks. Your ability to delegate will not only determine how well certain tasks are done but it will help to keep you from burning out. Here is what you need to know about how to delegate in your small business.

•Start with the small things-Almost all small business owners tend to have one thing in common-they like to be in control of all aspects of their company. However, this is not a practical or an efficient way to run things. Once you realize that you need to begin delegating some tasks it can be good to start with some small tasks. This way you can still keep control over the major tasks involved in running your small business while not having to give up to much. You may find that after you delegate some smaller tasks that you not only feel less stressed but it frees you up to focus on the big picture needs of your small business.
•Use delegation to test employees-It can be a practical test of your employee’s abilities to delegate certain tasks and see how well they are completed. When you find that you are having to delegate tasks choose employees that you think will have real potential with your small business and assign the task to them. It is important to choose employees that you feel are capable and you trust them to complete the work. This way you can get a close look at how well they handle certain tasks and situations, and then you can determine if they will be a long term asset to your small business.
•Have written job descriptions-This is one of the most valuable tools that you can use for work allocation. You should start with yourself and write down everything that you feel falls under your job description. Then as you hire employees you should do the same for them. Make sure that you list the required responsibilities for every new job. One of the benefits of doing this is that it allows you to see what employees could be taking on more responsibility and which employees are excelling in their job description. Finally, don’t forget about considering yourself in the equation of work allocation. Savvy small business owners know when they have to handle something themselves and when someone else can take it on.
•Consider your own needs-Since you are the both the foundation and the leader of your small business you need to carefully consider where and how you are spending your time. By carefully considering what you are doing everyday you will be able to determine what tasks you need to be delegating. By asking yourself certain questions you will be able to decide if you are really spending your time where you need to be. Some of the questions that you should ask yourself are-
1.How much of your day are spending on routine tasks that could be done by almost anyone else?
2.How much time are you spending on tasks that should be completed quicker and more efficiently?
3.How much time are you spending on tasks that are not directly contributing to the bottom line of your small business?