Being in the business world is not easy. Large capital, high level of competition, innovation, creativity and service are things that must be considered carefully before opening a business. Not a few businessmen who eventually went out of business due to lack of planning.
However, there are not a few businessmen who initially run small businesses, but now they have become big. This happens because business people have the key to small business success. Before discussing the tips, let’s discuss one of the following examples of business success stories, come on!
Tips for Growing a Small Business to Big
Success in doing business does not materialize overnight, let alone as easy as turning your palm. Even so, don’t be discouraged. There are tips for successful small capital businesses that can be applied on business trips. Anything?
Thinking of Business Ideas
First, think about the business idea you want to run. Of course it’s not easy, because of the many ideas that are going through your head, you have to choose the one that is most suitable. That’s why, starting from the simplest idea first, the capital is in accordance with the budget.
For example, a market snack business or open a breakfast shop. Just think about what food to serve every day, while making sure the food is delicious. Thus, sales sell quickly and capital rotates quickly.
You can also turn your hobby into a business idea. Hobbies are things that are liked, so you are happy when you do them. For example, for those who like traveling , you can open an open trip business . Destinations that have been traveled can be used as tourist destinations for tour participants . Your job is to work together with destination providers and tour crews so that the business runs smoothly.
Doing Market Research
Small capital success business can be realized as long as you are willing to do market research. Research helps you create a strategy to run your business. This includes where to start, the intended market share, the products created, and the decision to open an offline or online store .
Market research helps you find new opportunities in the business world. With research, you know what the market is in demand. So, the existence of competitors is not a scary thing for you.
You can start research by finding out the trends that exist in society. Then, find out consumer shopping styles, how much money is spent, and so on. Thus, you know what products to offer to consumers.
The point of being unique here is that the product being sold has characteristics that will set it apart from other products. Like Stussy, whose logo seems simple, but the graffiti style plus two dots above the letter “U” is unique in itself. This uniqueness makes it remembered by consumers.
For the culinary business, for example, you can put its uniqueness on the packaging. The lunch box for packaging can be engraved with your business name. Everyone who sees the lunch box will remember the food brand.
Capital is no less crucial in running a business. The amount of capital depends on the type of business and its scale. With a capital of 5,000,000, you can open a breakfast shop or a capital of 1,000,000 for a market snack business.
Capital requirements will increase as the business grows. So, every profit earned must be stored as well as possible. If the amount has been collected, you can expand your business or add products you want to sell.
Allocate Capital Appropriately
There are two ways that can be used to allocate capital in business. First, capital expense to purchase raw materials, equipment and business equipment. Second, operational expenses to finance operational costs, such as transportation, employee salaries, electricity, water and internet.
Determine how much capital for each. Allocate capital using an estimation method at the start of running a business. After knowing the exact amount for a month, you can make a new budget the following month so that the allocation of funds is correct
Looking for Suppliers
Most business capital is spent on buying raw materials. In this case, you need to find a supplier who can provide the raw materials needed every day for production. Of course, at an affordable price and qualified quality.
Build good relationships with raw material suppliers to become customers. Thus, you can get cheaper raw material prices than other suppliers. Make sure the supplier’s location is not far from your residence or business location to save on transportation costs.
Choose the Right Location
It’s called doing business, location is an important thing to think about. The success or failure of a business cannot be separated from the influence of a strategic location. In the sense that it is easy to access, close to residential areas, office buildings, and often passed by many people.
A strategic location allows it to be crowded with visitors, and ultimately makes the business grow faster. Indeed, the cost of renting in strategic locations is quite expensive. However, there are strategic places that are cheap. Your job is to find the place so that the business can run smoothly as expected. You don’t have to rent a special location for doing business, because you can use existing vacant land.
For example, a home garage or front yard to open a culinary business. Utilizing empty space is good for reducing budgets in doing business. So, the existing budget can be allocated for other things that are no less important, such as for promotions or buying additional chairs and tables so that buyers can eat on the spot.
Take Advantage of Existing Equipment
Opening a new business does not mean having to buy new equipment either. As is known, the price of equipment is quite expensive, especially heavy equipment. Instead of buying new, it’s better to use existing equipment to minimize expenses.
If your business is growing, you can think about buying new, adequate equipment. You can use some of the profits earned for business needs. So, the burden of opening a business for the first time is not too burdensome.
Perform Periodic Innovations
The way to open a small but successful business is to innovate regularly. Innovation is the latest invention that will differentiate your business from competitors. Innovation is a unique and different thing that characterizes a product.
Use Quality Raw Materials
Whether it’s a culinary, clothing, or furniture business, try to use quality raw materials. This is because quality products are preferred by the market because they have a long economic life. Quality determines whether a product is durable or not.
Look for raw material suppliers who can provide quality raw materials for business needs. Look for a price that is competitive with other suppliers in order to reduce the selling price of the product. Information about suppliers can be found on the internet, then all that remains is to negotiate when meeting to reach a price agreement.
Share Your Time Well
Entrepreneurs do have flexible time, but you have to be able to share it well. Between the time to develop the business and the time for the family, the two must be able to go hand in hand so they don’t clash with each other. Because, you can’t run both at the same time, right?
If the time is for business, then focus on business. Avoid the habit of being lazy let alone delaying work. Remember, there are many things that still need to be done if you want your business to grow as expected.
Take advantage of Social Media
Social media has an important role in the modern world, such as Instagram, Twitter, Facebook and blogs. Utilization of social media as a promotional medium is considered more effective and efficient considering the number of social media users is increasing over time. In addition, the cost of promotion is also cheaper than promotion in print and other electronic media.
Now is the time to create social media accounts for your business. Don’t forget to include your brand name , products sold, and a contact number in your profile bio. The social media feed can be filled with customer testimonials, the condition of the selling area, and the types of food menus being sold for information for the public out there.
Social media can reach a wider market, both at home and abroad. Your job now is to upload photos regularly, then include a complete product description. Give certain promos or prizes as an attraction to increase buyer consumption.
Take advantage of Relationships
Extensive relationships can speed up business travel, you know! Relationships are word of mouth promotional media that are believed to be powerful enough to grow a business. You can give food samples to the people closest to you, then ask for feedback from them about taste, packaging, and so on.
Feedback can be used as evaluation material before finally selling products to the wider community. If everything is okay, you can ask a relationship to promote your business to their office colleagues. And so on until finally the business becomes big.
Engage Tough Guys
You need tough people for business, especially those who are just starting out. Look for employees who are hardworking, honest, and tenacious at work. Because employees like this are the ones who will help you achieve the business goals set at the start.
Don’t forget to pay accordingly. Also appreciate employee achievements. When an employee feels valued, he will be loyal to you.
Looking for Business Partners
Doing business is not only alone, because you can do it with a partner. He is a person who has the same vision and mission, and can certainly be trusted in running a business. A partner is your friend exchanging ideas, including friends in matters of business capital.
Finding a business partner is not easy, so make the best selection possible. Make black and white agreements to avoid deviant behavior. This agreement should also contain the distribution of results, duties and responsibilities of each.
Continue to Innovate
The last way to open a small but successful business is to continue to innovate. Not only in terms of products, but also services, promotional styles, and packaging. All aspects need innovation to increase the selling value of your business in the eyes of consumers.
Take the time to find references related to the innovation you want to do. Make sure this innovation has gone through the analysis stage and a number of considerations before being realized. The goal is to minimize errors that have the potential to cause losses.