10 Tips for Entrepreneurial Success (Part 2) by Dr. Anika Goodwin Hilderbrand

6. Be Prepared to Make Tough Decisions

Every entrepreneur must make sacrifices for the sake of the business.  Sometimes that tough decision is to put your ego aside. Pride can kill a business and not every decision you make will align with your opinions or feel good to your ego.  In January, I had to make the difficult decision to pull the brakes on my business for a while.  Rapid growth and a lack of systems and processes had resulted in a lack of excellence in how my business showed up in every way.   Although a small business owner should have deep personal and emotional stakes in the business, these cannot be the guiding force behind every daily choice made. You should recognize when you need help and accept that there are people who may know more than you about certain aspects of the business. It is ok to wave the flag and ask for help.  You must be prepared to check your ego at the door and listen to what others are saying—especially if it’s coming from your consumer. It is not easy to approach a situation humbly and with an open mind, but it is the best way to make a sound business decision.

7. Keep Your Overhead to a Minimum

“Cash is King” is more than just a phrase.  It is a law of business and one of the keys to small business success. Cash liquidity is imperative as the first line of defense against any unforeseen challenge.   Cash reserves ensure a small business’s security, but not all small businesses have the good fortune of operating with a large enough reserve to absorb sudden losses in income or increases in expenses. The larger the cash flow, the more stable the company.  Statistics show that 50 percent of small businesses are operating with fewer than 15 days of operating income in reserve.  Covid made us all rethink our business and personal cash reserves.  Smart, successful business owners took heed and figured out if all of a sudden there is no income, how much cash will it take to cover my business’s overhead costs? 

A good rule of thumb is not to grow the business’s overhead past what the cash reserves can support. It is much easier to expand the company as one increases the cash liquidity, rather than being forced to downsize later because your reserves are inadequate.

8. Know the Operational Needs

You need to know everything about your business, and this knowledge should not be limited to just numbers. It is essential to understand what your business needs to operate effectively. This includes employees, equipment, materials, and all things that are essential to running your enterprise. The intangible aspects also need to be considered. Efficient processes and inventory management can seriously affect customer satisfaction and operational costs. Research best practices, automation tools, and other hacks in your specific industry and test to see what works best before implementing them into your business.  It takes time, but it will make your business that much more profitable and successful in the long run.  Business is a marathon, not a sprint, so train for the long game.

9. Hire the Right People and Treat Them Well

I am not saying that it is easy, but it is imperative to have A+ team players in your business. In a small business, more so than in large corporations, every employee needs to be trusted to manage his or her daily responsibilities with as little oversight as possible. The structure needs to be as lean as possible to keep the overhead costs at a minimum. No small business can afford to waste a position by hiring someone who is not a fit for the role. But the same is true about the opposite scenario. No small business can afford to lose a star employee. Build your team with stars and treat them like you value them. Listen to them and help them grow.  This is a tactic used by the  best business leaders because they know that their team will grow the business in return. Hiring goes beyond knowledge and talent; it is crucial to consider the company culture you aim to achieve. Candidates should be resourceful and capable of wearing multiple hats, especially at the beginning, when the business is taking form. When in doubt, lean toward a person with the soft skills that fit the position and company culture, who is trustworthy and seems capable of learning the technical skills, instead of choosing the one who excels at the technical skills but may cause problems with the team dynamic later down the road.  Your team is the business’s driving force. When you choose a new team member, remember that attitude, personality, and compatibility are key. 

10. Always Look to Improve

Avoid complacency and being blind to innovation. Once things start going well and the business finds its groove, it is time to start looking for ways to expand and improve. Automating a process, adding a new style or offering, creating a unique flavor or scent, or offering extended business hours. Every business has room for improvement. You must keep moving to avoid becoming stagnant.  Your customer’s attention span will not allow it.  innovation is imperative to make you a small business success story. There is no shortlist of large, seemingly stable businesses that suffered severely from being resistant to change.  If you get too complacent and comfortable, the competition will take advantage and find a way to take the lead. 

Talk to your consumers to find pain points of which you may not have been aware. New ways to improve your business will happen naturally by just being observant, open, and by listening to your team and your customers.  Take well-informed risks to expand and grow, but note that you can only make these decisions once a solid foundation has been built. If something goes wrong, at least the business will have a big enough cash safety net to break its fall. 

In summary, to achieve success, you must see business as a competition, a steady-paced marathon, not an all-out sprint. Remember to stay focused, nimble, with good self-care and the goal always in mind.

Learn more about Dr. Anika at www.opulencemdbeauty.com Twitter: @opulentlashlife