The Problem With Small Business
Tuesday, 2. March 2010
As the economy and job market fluctuate, many companies have embraced a leaner approach to business, laying off or dismissing thousands of employees. Or, maybe you find yourself on the wrong end of a divorce, inventorying your resources and coming up short. Whatever the cause, this juncture is where many people make the decision to go from employee to small business owner. For the purpose of this narrative, we’ll call these people “impulse owners.”
The problem with small business is that for most small business owners, the creation of their business enterprise was more of an afterthought than intelligent design. They are unhappy with their current salary/finances/situation, and use these feelings as justification for leaping head first into business ownership. Although they might have the talent/ability to successfully manage a business, these impulse owners have not done the research necessary to give the venture a fighting chance.
Many employees confuse expertise in their field for sound business know-how. However, if we compare the ideal business owner to the impulse owner, the differences between the two become glaringly obvious. For example, the ideal owner has a plan for his business. Not an official, SBA-approved business plan perhaps, but an idea of his goals for the enterprise. He has a good concept of his business model, knows what type of capital he needs, and has some form of marketing strategy. Now, compare this to the impulse owner. He created his business because he needed a source of income and he has not allotted much time to research or conceptualize the fundamentals of his business. He has no awareness of his market, has no idea which type of business entity to create, and no real understanding of what he wants to do with his business. In short, he has all the ingredients for failure. The fact that most owners don’t grasp is that they are not failing because of a poor business concept necessarily, but because of poor execution.
In order to create a successful small business, an owner needs to understand their plans for the business’ future. Think of making a cross-country road trip without a map—if you drive long enough, you’ll end up somewhere, but it might not be where you had intended (or desired!). Unfortunately, this is how many small business owners start. However, what many fail to realize is that you don’t have to attempt this undertaking alone–there are numerous resources at your disposal.
Business coaches/consultants are one example. A business coach provides 1-on-1 interaction in order to identify the weakest points of your business. They’ll discuss your plans for the business and what you’re looking to get out of ownership. Is this a passion or merely a source of income? How much time and effort are you looking to invest in its operation? Once you have identified your goals, a business coach can devise an action plan for shoring up those weaknesses that are most detrimental to your business. Most importantly, a coach can hold you accountable! By establishing priorities and specific goals, you can take drastic steps to improve the quality of your business. Business coaches provide very direct, specific coaching and can usually be retained on both a project and monthly basis.
Another resource lies with the Service Corps of Retired Executives (SCORE). SCORE is a volunteer organization that has access to literally thousands of former business owners and corporate executives. While the advice/mentorship they provide is significantly more generic than what a business coach/consultant can provide, their assistance can still have a positive effect on your business. They can help you answer questions concerning a variety of topics, like how to file taxes, how to secure financing, and how to plan out the stages of your business. Although they will not actually walk you through how to implement their suggestions, they are a good resource nonetheless.
Finally, there are also numerous articles pertaining to the creation and operation of a small business. Many of these articles can be found on SCORE’s website and on the Small Business Administration’s website (www.sba.gov). There is a wealth of knowledge contained within these libraries, and even if you decide to employ a coach or mentor, every small business owner should take a glance. Although this method is time-consuming and would best be served as a supplement to a coaching agreement, the information contained in these online libraries is invaluable.
While most small business owners might have started out with very little actual knowledge about how to run a business, there’s no reason to remain uninformed. There is a wealth of resources available that can help transform a struggling enterprise into a successful venture. But please, don’t wait until the situation has turned desperate or impossible before you begin looking for help. Remember, just because you’re new to business, doesn’t mean you have to go it alone.
Article written by James Sly, Business Coach TG Harris Consulting. A full service coaching and consulting firm. For more information regarding products and services visit www.tgharris.com or call 619-272-9337.
