Small businesses have a very dynamic existence for many reasons and as such it doesn’t take much for one to fail. That said I want to touch on a few basics that can help minimize the chance of failure and hopefully lead to further success. The following list is not exhaustive but it does touch on three principles that are essential for success.
1.What business is
Business is the exchange of a good or service for compensation. Compensation is often monetary but does not have to be. For a small business it can often times be more “profitable” to trade ones services for another. An example of this would be building a website in exchange for a bathroom remodel. If a budding young web designer happens to know a budding young construction worker an arrangement may be made that can be more beneficial for both parties. Small businesses by nature do not have much finance behind them so offering a service as compensation can often times be a great option.
Business is relational. This is no more obvious than with the push of social media. Businesses want to establish a dialog with their customer base in order to facilitate relationship. Believe it or not these relationships translate into dollar bills. A quick caveat, relationships must be genuine. Entrepreneurs that are only building relationships for the sake of monetary gain will quickly find that ulterior motives will be recognized. If you are doing what you love don’t push relationships, build quality ones that will last. A burn and turn approach will do more harm than good.
3. Win Win
As an entrepreneur you should be on the lookout for win win situations. All of your business transactions should be a win win. If any party leaves the table at a loss the transaction was not a success. Individuals that push to profit at the loss of another will not foster long term growth.