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30-Oct-2020 By - team

See what qualities your business should have

Entrepreneurship is exposed in the form of a small venture. Every big business today started as a small business. It is the first avenue by which an entrepreneur executes his /her innovative idea/ideas.

Historically, small business has played a key role in our civilisation. It appeared more than 4000 years ago. Small businesses flourished in almost all ancient cultures of the world.

The Arabs, Babylonians, Egyptians. Jews, Phoenicians, and Romans excelled at it. The entrepreneurial zeal was the driving force behind all these small ventures.

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Both the small business and entrepreneurship are the inseparable twin feathers of the same bird. Therefore, small business is vital for the development of entrepreneurship in every economy.

The definition of a small business varies from country to country and between times in the same country. There is no generally accepted concept of small business.

It defies easy definition too. The following discussion will deal with various concepts of small business adopted in various countries of the world.

Small business is an enterprise that is comparatively small in size, operating in a geographically localised area except its marketing, employing fewer than 100 employees. It is financed by one individual or a small group of individuals.

There may be a hundred remarkable character and personality traits that define you or your favourite successful small business owner. When you compare the entrepreneurs behind successful small businesses, however, a handful of traits rise to the top. Here are some of the most common and powerful character traits that describe small business owners who have started successful businesses.

The act of breaking away from the masses of the employed to open a small business shows determination. Yet, many other traits of small-business owners, including resiliency, adaptability and confidence, set them up for success as an entrepreneur. According to a study conducted by The Guardian Life Small Business Research Institute, most successful small-business owners share a common set of traits.

Below are the most important characteristics of small business owners.

Confident

Confidence comes from knowing yourself and your abilities. Where arrogance makes you blind to your weaknesses, confidence accepts and acknowledges those weaknesses. As a confident small business owner, you understand both your best skills and biggest areas of improvement. You can use this confidence to bravely take your business outside of your comfort zone without acting rash.

If you have confidence in yourself and your business, business goals become much more attainable. You won’t be held back by fear of making the next move for your company. On the other hand, you’ll be able to see your limitations and will be less likely to make a silly mistake when managing your business. Another added bonus of being confident is the perception of your employees, vendors or potential lenders. You’ll become a respected leader. People trust you, and your confidence is likely to rub off on your employees.

Persistent

Running a business doesn’t always go as planned. Whether it’s a setback on a project timeline or a rejection for financing from a traditional lender, you have to be persistent to make it work. Every time something goes wrong with the business, you, as a persistent business owner, look for solutions to the problem. Sometimes this means pushing forward through barriers until you get through, and sometimes it means finding a completely new route to the goal.

Your business is going to face problems. As one of the main positive characteristics of small business owners, persistence helps you get through these problems and come out more determined than before. When you face a setback, such as being denied funding for your next project, you jump straight in and find a solution. Just be sure that your persistence doesn’t hold you back from enjoying a work-life balance.

Goal-Oriented

You need to know what your customers want from your business and have a plan to achieve those goals. Being goal-oriented works directly with persistence to keep your business heading towards success. Creating goals, however, includes more than just the final outcome. If you’re a good goal-setter, you know that achievable goals come from careful planning, research and honest communication with everyone involved. Even with the main goal in mind, it’s important to focus on each step to reaching that goal by creating micro-goals along the way.

Goal-setting can help your business feel more organised and unified, whether you have a team of 10 and more or it’s just you. When you’re a goal-oriented leader, you show others that you aren’t just driven, but have the plans in place to succeed. With attainable goals in place for your business, you know what your next step needs to be – even when the future is murky.

Budget Conscious

Planning, setting and sticking to a budget is one of your most important jobs as a business owner. Financials measure most success metrics for businesses. Being budget-conscious can help grow your business from barely staying afloat to a successful and established brand. As a financially savvy business owner, you recognise that setting a budget is only the first step. You’re always keeping an eye on where business financials are headed in the future. You can use a financial checkup to help make sure you’re on track.

Part of deciding on a budget is knowing when you need extra working capital for various business expenses and projects. Whether you’re planning a move to a new location or need money to cover an invoice, loans for small business owners can help you get the money you need.

Personable

Likeability is often taken for granted. A positive attitude and approachable personality make it easier for your employees, other professionals and even customers to be open and honest with you. In the long run, being personable can bring positive results to your bottom line. Engaging with customers and building a relationship leads to repeat business and word of mouth recommendations. A friendly personality can also help relieve a stressed customer or employee when something goes wrong.

Having a likable personality doesn’t have to mean you’re constantly smiling and always perky. Everyone understands that we all have bad days. Instead, being personable means, you know how to handle stress and won’t take a bad day out on someone around you.

Passionate

You might think of your business as your baby. You’re not alone! Many entrepreneurs and small business owners see the businesses they’ve built in this way. This mindset is no surprise when you consider the time, resources and finances most business owners put into their businesses. Your employees and customers will be able to see your passion as a business owner. This passion can help excite new employees or gain the confidence of a potential client.

While some jobs can be done for a long time with no real passion, owning a business isn’t one of them. As a business owner, you spend a large amount of time focusing on your company. Unlike a traditional career, you have to have a passion for what you do, or you’ll eventually face some burnout.

Flexible

Striking out to put together a small business takes time, energy and knowledge — or at least a willingness to learn. During the process of getting a business off the ground and even after, problems and issues tend to appear. Small-business owners are flexible in handling these obstacles and finding workarounds as needed. They don’t allow setbacks to stop them from meeting their goals.

Collaborative

Small-business owners know how to delegate tasks to people within their organisation effectively. They also know how to build successful relationships with everyone they contact through their business. This includes partners, their management team, employees, vendors, consultants and customers. The ability of managers to collaborate and delegate allows a small business to experience growth.

Proactive

Entrepreneurs are proactive. They have initiative, and they are ready to use it to further their business. They look for opportunities to improve their company, such as implementing services or marketing products that allow their business to stand out from the competition. They are also open to opportunities that can help them expand their current business into new areas.

Technically Aware

With all of the technology available to business owners, most are at least technically aware, if not adept. The use of software, email, websites and smartphones can make running a small business more efficient and effective. Successful small-business owners choose to use technology solutions that can help them and avoid wasting time and money on options they don’t need.

Self-Reliant

Part of the reason people start a business is because of their desire to be self-reliant. Rather than work for someone else, they want to have control of their future. They don’t look to others to make decisions. Instead, they make decisions on their own. They realise that the quality of their future is, to a large extent, within their control.

Accessible

While running a small business offers owners the ability to set their own schedule, it’s important to ensure products, services and knowledge are accessible to customers. Customers want things as quickly as possible. If a business owner doesn’t deliver the accessibility customers have been conditioned by society to expect, he won’t achieve success, warns home-based consultant James Stephenson in a book excerpt for an entrepreneur.

Energetic

With all of the responsibilities of running a small business, owners must have a high level of energy. Typically, the hours are long, and the responsibilities are greater as an entrepreneur when compared to serving as an employee for someone else. Small-business owners must be willing and able to give an extra effort at all times since it’s their own money and reputation on the line.

Daring

Launching a small business is risky. Even if the business owner has carefully examined all angles of the venture to give himself some assurance of success, nothing is certain. Small-business owners have to be willing to take a certain amount of risk in the face of a possible loss.

Constant learning

A desire to learn can help you continually evolve. Reading books and other publications, growing your business network, and seeking mentors can all provide learning opportunities that you can take back to your business. In addition, looking at other companies’ successes and failures can help you learn valuable business lessons.

Strategic planning

Certain tasks, like writing a business plan, involve laying out well-defined goals. Austin recommends getting feedback from fellow business owners or mentors – and building flexibility into long-term goals – to help ensure your strategy yields the desired results.

Language skills

With the majority of client communications occurring via email and text and the growing need for a strong online presence, grammar matters more than ever. Print out important documents and read them aloud. That can reveal grammar mistakes along with other crucial writing issues involving tone, word choice, and structure.

Starting and operating a business looks different for every small business owner, but these five skills – along with passion and dedication – are critical to long-term prosperity.

Financial Services Professional Team

Strengths of Small Business

The definition of a small business varies from country to country and between times in the same country. There is no generally accepted concept of small business. It defies easy definition too.

The following discussion will deal with various concepts of small business adopted in various countries of the world:

Spurs of innovation

Small businesses are the major sources of innovation in our civilisation. Small businesses implement substantive numbers of successful innovations.

Sources of new materials, processes, ideas, services, and products that large business firms are reluctant to provide arc being provided by small businesses.

Thus, the small business acts as a spur of innovation lo millions of entrepreneurs throughout the world.

Checks monopoly

Small businesses encourage competition by checking the development of monopolies by large businesses. It produces new products, methods, and services and so forth and checks large firms’ tendency to control the market.

It also provides differentiated products that give the market a wide spectrum of choices. Therefore, small businesses keep large firms on their toes.

Produces people

Small business has more intimate knowledge of its communities: therefore, take more personal interest in them. It takes community projects. It produces people as well as goods and services.

It enables the community people to achieve a better-rounded balanced development than they could enjoy in large organisations. It provides them with a greater variety of learning experiences in work activities.

People have greater freedom in making decisions and in perforating a greater variety of activities. It lends zest and interest to their work.

It also trains people to become better leaders and to use their talents and energies most effectively.

Contributes to Gross Domestic Products

Small business contributes to the national economy of every country of the world significantly. It generates 54 per cent of the sales revenues and 40 per cent of the gross national product.

Reasons for the Failure of Small Business

The bright side of the small business is not all small businesses. In contrast, the dark side reflects problems unique to small business- Its death rate is high.

Researchers have identified many reasons for the failure of small businesses in the developed and developing countries of the world.

Inadequate management

The lack of managerial knowledge and skills is the vital cause of failure of the largest number of small businesses. It is more evident in the case of expanding a situation.

Anybody with any academic background and experience can go for starling his/her small venture.

No law can stop them from entering into their ventures. It is not recognised that managerial expertise is a priori condition for starting and operating a business.

This deters them from recognising, hire, and tap the talents they need to survive and grow.

 

Shortage of working capital

Working capital is the lifeblood of all business enterprises.

Small businesses, with a small capital base, faces a shortage of working capital to maintain a desirable level of operation. It also thwarts its expansion and its capacity to avail profitable opportunities.

Study shows that businesses that start with loo little investment by owners have a greater chance of failure than businesses with adequate investment by owners.

Lack of balance

Small business does not maintain a proper balance among many interrelated affairs of the organisation.

The significant reasons for such imbalance arc the lack of coordination between production and marketing, lack of proper record-keeping, lack of effective selling techniques, lack of coping with the increasing complexity of internal management, and lack of balance between having too few products so that sales are lost and diversifying too fast.

These lacks of balance make small businesses vulnerable to failure.

Unabated entry

The chief reason for small business failure is the unabated entry. Any men and women can enter into small business without any hindrance.

They may have 20 years of experience in that line or none at all. They may do a textbook job of searching their markets or plunge in with no information at all. They may be millionaires or penniless.

Yet regardless of their qualifications, the small business is open to them.

But economists’ often point out; freedom of opportunity means not only the freedom to succeed but also the freedom to fail. Failure to sec this reality often causes untold stress, trauma, and tragedy.

Lack of business experience

Small business run by people without prior industry experience is vulnerable to failure. People with any track record start small businesses and could not cope with operational problems and crises. Inexperience in a fine of operation makes decisions faulty and disastrous to the organisational continuity.

Fraud or Disaster

Small business is vulnerable to many situations due to its inability to 10 sustain the damage. It may be caused by fraud, by fire, flood, burglary, criminal act, or by the death of owner-manager or a key person of the business. It affects its continuity in the market or sometimes causes the death of the firm.

Insufficient inventory turnover

Small business faces inventory turnover problem that docs not only blocks the working capital but also risks the business for product obsolescence.

It also affects profit due to lack of sales and deters the smooth progress of the operation of the business,

Improper markup

Small business does not set its price policy with sufficient market information rather goes on traditions cost-plus or competitive pricing.

It sometimes does not cover the expected rates of return necessary for maintaining the financial strengths of the firm. It is observed that small firms that fail, they fail because of insufficient return on their investment.

Wrong location

Location is one of the fundamental reasons for the success and failure of small businesses. A common saying is that “the three most important factors in a small business success arc location, location, and locator.

Though exaggerated, it underscores the need for the right location for the small business.

Location is more vital in some industries than in others depending on whether customers must travel to the entrepreneur’s place of business or the entrepreneur must travel to customers, whether the business offers a unique product or service with little competition, or even on whether convenience is a key selling point.

However, it is well recognised that the wrong location seriously affects the success of small businesses.

Running a successful business starts with a great business owner. As a small business owner, it’s important to recognise both your good and bad qualities to make your business a success.

These characteristics of small business owners help businesses grow and overcome difficult challenges. One of the biggest issues faced by a small business owner is securing financing. You can use your best small business owner characteristics to help you get the funds you need for your business.

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