When developing their strategic plan for their firm, small business owners need to look beyond their own practices. Although they may have a good sense of what their business needs in order to grow and take on more of the marketplace, thinking they have all the answers can cause them to miss out on realistic ways to improve their operations.
All companies start small. But not all of them take the same approach to building success. By looking at a company that operates in the same industry and has been able to develop into a large corporation, small business owners can identify helpful practices and strategies they can implement when crafting their business plan.
Below are three lessons small business owners can learn from already successful larger corporations.
Plan to earn revenue
Sounds simple, right? And while it is a simple concept, it's one that some business owners fail to keep in mind when they're getting their companies off the ground. Leaders need to prepare their businesses as if they will be the next Apple. Revenue is the life of a small business, this much is obvious. But how to generate revenue is a completely different beast. Many of the world's most successful businesses have reached the top of the food chain by developing forward-thinking revenue-generating strategies. Although each business' strategic plan will differ in some way, SMBs may be able to identify an overlapping component in another company's plan and incorporate that within their own operations. What is it that they say? Imitation is the best form of flattery.
For example, seeing how another company's budget aligns with its revenue-generating strategies could be helpful when a small business owner sits down to craft his or her own financial plan. Of course not every line item will match up, but more general ideas could prove helpful: What type of budgeting software do they use? What does it allow them to do? What specific items do they include in their plans?
Find your niche
Every business has something they do best, and it is vital that small businesses stick to their go-to product in their infancy. A few examples of businesses that have started by offering one service then expanding when experiencing success are Google and Facebook. Google focused on its search engine first and foremost before launching its numerous other services, such as Gmail and Google +. Facebook, which has become so popular it's now a noun and an unofficial verb, launched as a way for people to connect with old friends. Now, it's multi-billion dollar company that connects people and businesses across the globe.
These two tech companies have both achieved substantial success, and they both began by specializing in one thing. Keeping this in mind, small business owners need to create their strategic plan with this same mindset. They should know what they do best and use that as a way to earn revenue. But their long-term objectives should never be too far out of sight, either.
Have a strong hierarchy
Too many small businesses rely on one person to be the main decision-maker in the enterprise. While this person may be the mastermind of the company's products and services, he or she may decide at any point to leave for a new endeavor. Small businesses need to have a team full of leaders, and when first hiring, it should be one of the characteristics they prioritize. By having a number of people with a passion for success in the workplace, small businesses can sustain the loss of a CEO or company leader. Case in point: Apple. Steve Jobs revolutionized the mobile device and computer industries, and Tim Cook has picked up where Jobs left off.
Learning how to formulate a sound strategic plan will take time and require the right tools and people; however, it's key to a business' success. Any insight that can be obtained to aid in the development process should be considered. The company's future depends on it.
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