Business IQ: 8 Things Every Business Owner Should Know
With over 31 million small businesses out there, it’s safe to say that the small business owner is one of the types of people who make America so great. If you’re becoming a new small business owner — congratulations.
However, you’re not going to make it very far without understanding the most key pieces of business advice. With understanding some key business concepts, even the best idea in the world won’t succeed.
This article will walk you through some business tips that every small business owner in 2020 needs to know.
1. Quality Over Quantity
Tons of new businesses fail because they make the mistake of caring about the bottom line too quickly. Early on in your business, it’s far better to make sure you focus on satisfying your customers than making a ton of money. Big numbers, in the beginning, can impress, but shooting stars fall fast — positive customer interactions will build you the foundation you need to succeed in the future.
2. Repetition Over Progression
While it’s important to stay updated on the business trends of the times, plenty of businesses tank because they focus on decking out their businesses with gadgets and gizmos rather than what really matters.
What really matters is providing consistent customer service.
That’s right folks, it’s not enough to provide good customer service and reliable product — you have to do so every time. People prefer a business that’s reliable over one that’s constantly changing.
3. Word of Mouth is King
People spend tons of money on advertising when, in the end, the biggest form of advertising out there is free — word of mouth. The 21st century has brought back the feeling of a small town.
Since the COVID 19 pandemic, everyone is online. This means that more people than ever are sharing their experiences with certain businesses on social media. These posts — if they are positive — can bring tons of people into your business, that you can impress with your quality and consistency.
However, negative experiences online can be just as destructive as positive ones are constructive, so make sure you make every interaction perfect.
4. Find Your Niche
In the 21st century, trying to appeal to everyone is no good. There are so many communities, subcommunities, discussion forums, and identities online that more people than ever are begging for custom content.
Rather than trying to be the company that tries to please everyone with your product/service, find a group of the population that you care about and try to please them.
(This doesn’t mean you should shirk customer service. Give everyone who walks through your door the best experience possible. It just means you shouldn’t care about getting everyone into your doors in the first place.)
Make sure you pick a group of people that you actually care about. People are better than ever at sniffing out phonies. You do not want to be caught as insensible in the 21st century.
5. Learn How to Manage Risk
Risk is one of the most important concepts to have a grasp on if you want to succeed in business. It encompasses the concept of understanding the things that can potentially harm your business.
Business can come in many forms — it can mean a chance you’re taking that can improve your companies revenue but have dire consequences if it fails. It can also mean understanding an unstable economy or mitigating cybersecurity risks.
Risk is a tough and thorough concept that we can’t go into complete depth on here. Check out this complete guide for more information.
6. Focus On Your Company’s Culture
Most small business owners don’t understand the concept of company culture. They simply see their employees interacting and view it as a natural thing. However, human beings always respond to the environments that they’re put in.
With the right mind frame and skillset, you can influence the way your company’s culture develops. Setting your own business rules, dress code, and planning events for your company are all things you can do to create a positive work environment. Workers are far more likely to work hard for an employer that they feel treats them right.
7. Hire the Right People
Quinten Tarantino once said that the job of the director is to develop a vision and hire the right people to execute said vision. It’s impossible to make it in the business world alone — the best business owners aren’t jacks of all trades, they’re specialists who know how to hire other specialists.
Make sure you understand the areas you need help in and hire out. It’s not easy to hire the right people for your company’s culture and specifications. Interview a wide number of people, and always pick the person who’s right for your company rather than the person who seems like the “best worker”.
8. Make Friends
One of the biggest lessons you can learn in the world of business is to make friends, not contacts. No one likes someone who is networking. Though this concept is touted by business gurus, networking is an extremely shallow way to interact; it tells people that you only care about them for how they can benefit you.
Instead, make friends. Don’t limit those friends to business owners.
Talk to your customers and become a warm and friendly person. Friends are people who are willing to do favors for you. People from all walks of life — artists, musicians, architects, scientists, politicians, and yes, other businesspeople — all of these types of people can help you out when the time is right.
Every Business Owner Should Understand These Concepts
The concepts above are crucial for any business owner to learn if they want to do well in the 21st century. But here’s the biggest secret — while it’s easy to read these tips, it’s harder to live them and understand them.
The only way to make sure that you have drilled these concepts into your head is to try them out in the world.
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