It is a very difficult task to crack the riddle of generating and effectively executing a small business idea. However, if one plans well and puts in adequate preparation it is not that difficult to run a small business. One can use the vehicle of small businesses for two purposes a) Supplement the income and b) Be your own boss. It is a matter for fact that making a small business successful is an entirely different ball game. There are many factors which determine whether a small business is successful or not. There are certain things that an entrepreneur should know before venturing into a small business. This write-up outlines certain factors impacting success of business and a few recommendations on how to start and maintain a thriving small business.
At the outset the question must be addressed as to how to measure success of a small business. Each small business owner should create his own metrics for measuring success and persist with these metrics. It is common to measure success in terms of profits. If is often exciting to have quick short-term gains, but many consider long term growth and wealth as their goals. Some deem it more appropriate to consider the ability to solve customer’s problems as being more crucial. In this fast changing world what worked in the past might not ensure success in the forthcoming future. It is urgent to be open to the plethora of new information that is streaming in every moment and think on your feet. Following are two of the tips which a small business owner should heed if he desires to make his venture successful.
1. Delightful experience of the customer – With more and more access to information the expectations of the customers have also sky rocketed. Technology has enabled the customers to share their positive or negative experience amongst themselves. How the small business firm treats its customers is more crucial than the price or the product as customer perception is the determining feature. His impression can determine the success or failure, which in turn is a function of how much care is bestowed on him. Thus, every touch point with the customer is important. It should be the endeavor to thrash out the problems of the customers and create opportunities for giving a great experience to the customer. The focus of the small business should be on the customer. The insights of each and every member of the team about the customer should be considered. Internal friction should be eliminated to the extent possible.
The small business should be empathetic to the perspective of the customer about the product experience. The heat of the internal problems should not be allowed to reach the customer audience. Small businesses should invest adequately in training and supporting the customer service team. If the small firms are able to create a great customer experience, the customers in turn will be more than willing to pay a premium for the same. The aim should be to over deliver on the promises of the customer experience projected to the audience in the first place.
2. The power of a great business idea – The life of some of the oldest companies on the globe is as long as 1400 years. However, many small firms fail to last and go bankrupt in a short span of time. All businesses start small and their genesis is from an idea. The inherent risk in the business ideas varies. A few ideas stay relevant for a short span of time and then lose steam. It is important to zero in on a business idea that can lead to firm success. The small business owner should start with what he knows. One can have prior experience of a job or a hobby, each of which is more complex than it seems and can offer myriad possibilities. The small business owner should delve deep into these prior experiences and try to unearth the joys beneath each of these. This can provide him with an inkling of prospective small business ideas. He should try to get a clear grip on the customer problems that he aims to solve with his business idea. This is very important because if one is able to solve even one real problem of the customers, he has won the battle in terms of being able to launch a successful small business.
Once the idea of the business is framed in the mind of the entrepreneur, he can try to weigh its prospects by test marketing in a way with his own community. He can take the viewpoints and suggestions from his family, friends on any online group, of which he is a member, with regard to the small business proposition he has in mind. This can have twin benefits. Firstly, he can refine his business idea and increase the chances of its success. Secondly he can pinpoint at the beginning itself the likely problems he can face on the road to customer acceptance of his business idea. After the test marketing is over and the idea looks promising the small business owner should conduct sound customer research before embarking on the actual business. He has to come with an idea that is high-quality, unique and useful for the customers. This can be ensured only if in-depth customer research is conducted. The initial business ideas are not written in stone and they evolve and get polished in the course of time. In conclusion this write-up focuses on two basic tips and ideas for small businesses namely generating delightful customer experience and coming up with a powerful business idea than can ensure long term sustenance and growth of the small business.
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SAGE University Bhopal displays great initiative in fostering the small business entrepreneurship in its budding professionals. It uses twin pronged strategy. One leg of the strategy focuses on imparting curricular exposure to the students which will kindle the spirit of entrepreneurship in their evolving minds. When the student reads and hears about small businesses in the class his mind automatically starts to think in that direction which in turn leads to the possibilities of small businesses coming out of the SAGE University Campus. The second leg of the strategy tries to expose the student group through various entrepreneurship related co-curricular activities. This gives a hand on experience to them and hones their small business capabilities. The results of both these strategies are coming out in terms of the vibrant entrepreneurship culture on the campus.
Ashish Tripathi
SAGE University Bhopal
