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Advice for Small Business

Guest post by: Jim Stovall

Article Overview: I have been recognized by the President’s Committee on Equal Employment Opportunity as the National Entrepreneur of the Year. The U.S. Chamber of Commerce has awarded me their top honor, the Blue Chip Enterprise Award. Steve Forbes included me, along with Donald Trump and Tom Monaghan, as one of the Twelve Great American Business Successes in his 2000 book. This certainly does not mean I have all the answers, but I have identified a few of the questions.

Advice for Small Business

I have been recognized by the President’s Committee on Equal Employment Opportunity as the National Entrepreneur of the Year. The U.S. Chamber of Commerce has awarded me their top honor, the Blue Chip Enterprise Award. Steve Forbes included me, along with Donald Trump and Tom Monaghan, as one of the Twelve Great American Business Successes in his 2000 book. This certainly does not mean I have all the answers, but I have identified a few of the questions.

The majority of Americans make their living working for a company that has fewer than 50 employees. Government projections tell us that the percentage of new jobs being created is growing fastest in the small business sector. This is a vital part of our economy, and the principles it takes to succeed as a small business are much different than those of a Fortune 500 corporation.

A Fortune 500 corporation is much like a huge 747 cruising along at 30,000 feet. A small business is much like a tiny ultralight aircraft skimming the tops of the trees. Both are flying and both are effective modes of transportation; however, they have their own unique demands.

1. Focus. To succeed as a small business, you must have total focus. This is most critical in he startup phase. Later on, you may be able to diversify, but in the beginning, intense concentration on one thing is vital. It’s like having small children in that it is desirable not to have more than one at a time in the diaper stage. Once you have one aspect of your company up and running, then you can consider branching out. Until then, focus.

2. Find a flexible team. A team concept is much more important in a small business than a large one. There is much less margin for error when you are drifting a few feet above the tree tops as opposed to flying at 30,000 feet. In a large corporation, roles and job descriptions are very well defined. In a small company, everyone has to do a little bit of everything, and they have to do it well. Being the president of your own small business doesn’t mean that you don’t lick
envelopes, carry boxes, and take out the trash.

3. Have a war chest. Most small businesses that fail do so because they are undercapitalized. They only plan for the best-case scenario. Everything takes more time and costs more than you think it will, particularly in a startup small business. Working capital serves as altitude for our ultralight aircraft small business. The higher you are, the more time you have to correct errors and successfully fly your airplane.

4. Don’t overlook the foundation. Many startup ventures try to cut corners when establishing a proper legal and accounting foundation. While these things seem expensive now, they can be overwhelming later if you let them get out of hand. If you don’t have time to do it right, when are you going to have time to correct it and do it over?

Look at small businesses that have succeeded, and follow in their footsteps. You will find their leaders to be very helpful to you if you will simply ask them. A small business represents the most exciting, vital, and creative part of our free enterprise system. Just make sure you have gone through your preflight checklist before you launch.

Today’s the day!

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Article Tags: business successes, donald trump, entrepreneur, Jim Stovall, small business advice



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