The 6 Things Successful Small Businesses Do That Others Don’t

Small businesses make up 99.7% of all the nation’s businesses, are responsible for 64% of new jobs in the United States and bear most of the responsibility for driving economic growth. Sadly, though, 20% of SMBs don’t last beyond the first year, and 70% fail after reaching their 10 year anniversary.  

It’s clear that small enterprises are the backbone of this country. However, it’s also clear that said enterprises need guidance, and quite a bit of it. If you’re the owner of a small business or if you aspire to be one, take the time to study these top six small business growth secrets from successful small enterprises.

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1. Don’t Be Afraid To Collaborate With Other SMBs

Collaboration in the workplace leads to better ideas, increased efficiency and greater productivity, per Okappy. It makes sense, then, that the same benefits arise out of collaboration between your company and another one. Such collaboration also allows you to take advantage of others’ expertise and resources. This sharing of the minds can have impressive and inimitable results.

2. Make Yourself Known

Too many small businesses rely on word-of-mouth, and while one of the most effective marketing tactics, WOM is not enough in today’s competitive landscape. Today’s SMBs need to think beyond the borders of their towns and attract customers on a state, national or even international level. There are dozens of ways you can do this, but a few tactics that typically yield noticeable results include advertising on social media, joining the local chamber of commerce, building an eCommerce site and investing in location-based SEO.

3. Establish an Entity That Works for You

When deciding which entity is best for your business, carefully consider all your options. Many small business owners choose to register as a limited liability company, as this entity offers advantages like pass-through taxation, simplified paperwork and record keeping, and protection from potential legal action. To create an LLC, you can hire an attorney, but a cheaper alternative is to work with a formation service like Zenbusiness Inc.  

4. Open the Right Bank Account

Not all business banking accounts are created equal. The simplest accounts merely serve as a spot in which to hold your money. The right business bank account makes running a business easier on account holders. If you want to open the latter type of account, there are key features to look for:

• Payroll software integration for faster and more seamless payments
• High APYs so you can accrue interest on balances and ensure your money is always working for you
• Free instant deposits, so you never experience cash flow issues
• High monthly transaction limits, so you never find yourself in a bind
• Flexible hours, so you can always reach a representative when you need one

5. Cut Your Costs

Small business owners need to go above and beyond traditional budgeting; they need to cut costs wherever they possibly can. While many CEOs and entrepreneurs believe that cutting back is a sign of instability, smart business owners know that cutting costs is one of the best ways to turn an SMB into a money-making machine. Analyze your cash flow to see where your money is going and identify areas in which you can save. For instance, are you spending too much money on labor? Does the cost of raw materials seem high to you? If you have doubts, you’re probably paying too much.

6. Invest in Your Customers

Just as there are some areas in which you should cut back, there are others in which you should invest. As Groove explains, customer service is one of them. Hire the top talent and offer ongoing training opportunities. Implement several communication methods through which your customers can reach you, dedicate a team strictly to customer service, host in-store events and always look for ways to give back to the community. Also, reward loyal customers and encourage repeat visits through enticing programs.Growing and maintaining a successful small business is not easy, but then again, if it was, everyone would do it. While you have to pave your own path to success, the above tips can help you get started.