The major difference between small business owners and entrepreneurs is summarized below:
Small-business owners have a great idea: They solve a problem in their community. They know their business and target audience. They know what will make their customers happy. They serve their customers.
Entrepreneurs have big ideas: They dream big. They think big. They come up with ideas that haven’t been tested, diagnosed, or worked through. A lot of times they don’t even know if their ideas are possible, which gets them even more excited. They are generally, far more prosperous than small business owners.
Most times, entrepreneurs are small business owners who 'took the bull by the horn' by following the steps explained below.
Start with a well-defined purpose.
While the financial benefits of business ownership can be great, most successful business owners don't start with money in mind. To get your business off the ground, you'll need a clear purpose. This purpose should be something more intangible than money, like giving back to your community by creating jobs, solving a problem that you see in your daily life, or pursuing a passion. This doesn't mean that you shouldn't also strive for profitability, just that your primary goal should be the achievement of a greater purpose.
Focus only on your primary operations at first.
That is, avoid being caught up in every business opportunity that comes your way. It's better to be perfect at one thing than mediocre at five. This applies as much to making decisions to diversify your business as it does to deciding to take on additional projects for yourself outside of your primary business. Focusing on one thing will allow you to commit all of your resources there and be more productive in that endeavor.
Create a support network.
One of the most important parts of successful business ownership is getting over your own ego and seeking help. Your biggest sources of advice are going to be your group of business associates and other professionals that share your goals. Surround yourself with knowledgable and successful people and feed off of their ideas and enthusiasm.
Consider supply chain efficiency.
Your costs, and therefore your profits, depend on a successful supply chain organization. By fostering good relationships with your suppliers, organizing deliveries, and consistently providing customers with timely service, you can increase your profitability and reputation. Successful supply chain management can also help you eliminate any part of your business with wasted resources, like raw materials or labor.
Limit expenses as much as possible.
While this may seem obvious, just try to think of areas where you could generate the same effect by spending less money. Consider using pre-owned equipment, finding cheaper forms of advertising (for example, fliers rather than newspaper ads), or negotiating better payment terms with suppliers or customers to save a few money here and there. Try to maintain very low spending habits and only spent money when and where you absolutely have to.
Keep detailed records.
In order to be successful, you'll have to make a habit of recording each and every expense and revenue that your company has, as well as every dollar that flows through it. By knowing where exactly your money is coming in and where it's going, you're more capable of recognizing financial difficulties before they arise. In addition, doing this will give you a better idea of where exactly you can make cuts to expenses or increases to revservices
Watch your competition closely.
You should always look to your competitors for ideas, especially when you're starting out. Chances are, they're doing something right. If you can figure out what that is, you can implement it in your own business and avoid the trial-and-error they probably went through to get there.
One of the best ways to do this when you're starting out is to examine your competitors' pricing strategies. It would be much simpler to price your products/services similarly to competitors rather than to experiment with different prices on your own.
Earn a reputation for good service.
Earning a positive reputation is like free advertising; your customers will spread the word of your business to friends and come back frequently. Treat each and every sale like the success or failure of your business depends on it. This also means that you should be consistent with every action your business takes and every interaction with customers.
Always be looking for growth opportunities.
Once you've gotten established, you should always be on the lookout for places you can expand. Whether that means moving to a larger storefront, increasing manufacturing space, or opening a new location will depend on your business and goals. Successful business owners realize that one of the primary opponents to long-term growth is remaining stagnant. This means taking the risk of expansion rather than resting on your laurels at one, original location.
Perfect your business pitch.
Have a 30-second speech ready that explains your business as briefly and efficiently as possible, including information about your purpose, your service/products, and your goals. Having a practiced pitch that you can rattle off to anyone can help you in situations where you're trying to make a sale to a customer as well as it can when you're trying to bring an investor on board. If you can't explain your business in this short time, your business plan needs refining.
Diversify your income streams.
Another way to increase the value of your business is by seeking out other areas where you can make money. Assuming you've already established your primary business, look around and see where you could offer a different service or product that can blend into the already established marketing channel. Maybe your customers frequently visit your store for one item and then immediately go to another store for a different item. Find out what that other item is and offer it.
It will help in reducing frequent financial pressure and withdrawal for your personal upkeeps.
