7 smart ways to turning a small business idea into the next big business
This business secret is going to reveal will not only make your idea successful alone but will also show you how to turn them into big businesses
Every business whether small or big started as an idea.
Your small business idea is one.
In his book the cash flow quadrant, Robert Kiyosaki said ‘idea is the new money’. In other words, only those who have improved the way of solving a problem will their business thrive and make money.
That statement has truth to it when you look at some small business idea turn into a successful business today. Businesses like facebook.com, amazon.com and ebay.com are some examples.
Many small business ideas don’t see the light of the day simply because the owner tries perfecting the product or service.
The alarming rate of small business failure is obvious. According to most tried and failed businesses, 50% of the new business startup failing in their first year and 95% will close their doors of operation before they hit their fifth year.
That’s why this article is for every person who has a small business idea that wants it to work.
To turn a small business idea into a successful business, you’ll need to know these 7 secrets am about to reveal to stand the chance of becoming successful.
7 amazing secrets to turning a small business idea into successful business
Small business ideas are just the starting point
Coming up with the idea is great, but it’s just the starting point.
Your business idea may sound great to you and keeps you excited. You’ll need to dig dip to know how others will feel about it.
Evaluating and knowing how people will see and accept the idea, will give you room for improvement.
The idea here is to come up with a product that will be acceptable in the market.
Starting small is big way to succeed
Don’t see your idea small. So don’t think your small business idea cannot turn to big business. We get lots of maize by just planting one seed. Strive to take one step at a time and don’t rush things.
Starting small will let you know the cracks of the business idea and where you need to improve.
Get the knowledge
According to the startup business failure rate by industries statistics, specific pitfalls where picked. This is across all sectors that include information, retail, agriculture, construction, education/health etc.
This pitfall include:
- Living too high for the business
- Nonpayment of taxes
- No knowledge of pricing
- Lack of planning
- No knowledge of financing
- No experience in record-keeping
- Poor credit granting practices
- Expansion too rapid
- Inadequate borrowing practices
- Carry inadequate inventory
- No knowledge of suppliers
- Wasted advertising budget
- Emotional Pricing
The statement that says nine out of ten startups will fail becomes evidently true.
Going beyond the idea, Polled founders also cited the following pitfall as major startup failures.
- lack of sufficient capital (29%)
- the assembly of the wrong team for the project (23%)
- superior competition (19%) as top reasons for failure.
With all this in mind, it makes it more important for an entrepreneur to get the knowledge that is necessary to turn the small business idea into a successful business.
Getting the right knowledge
- Work on each of the pitfalls: get to know how to each pitfall and what to do about it. Write each pitfall and create the solution. These are important solutions before you start your business
- Ask: where you’re stuck, you can ask. Many have faced and overcame the challenges in the past. Their experience will help by suggesting on how to go about it.
- Find a mentor
- Learn from your competitor’s weakness. Improve your competitor’s weakness and use that as your competitive advantage
Create product or service that is acceptable
No business whether big or small has a perfect product. That is why companies come up with updated versions of their product or service, telling you the previous one is out of date or obsolete.
Most of these update maybe one or two improvements.
Why companies improve products
- They know customers get tired of using the same type of product or service.
- They know new product packaging attracts more customers and makes existing customers feel they’re trying a new one
- Increase sales
- To be able to stay ahead of competition
You have to look inwards and develop ways your business will achieve that.
Create excellent customer feedback
Customer feedback is one of the most important components of successful business and yet many small businesses tend to overlook that. According to Bill Gates, Your most unhappy customers are your greatest source of learning.
According to zendesk, 40% of customers begin purchasing from a competitor because of their reputation for great customer service.
According to American express, 55% of consumers have intended to make a purchase but backed out because of poor customer service.
It means you’ll need an excellent customer service to be able to keep your customers. What better way to know, if not true customer feedback?
Customer feedback can make or break your business.
Learning from your customers will make you achieve the following:
- It can help improve customer retention
- It can help improve a product or service
- It offers the best way to measure customer satisfaction
- It provides actionable insight to create a better customer experience
- It delivers tangible data that can be used to make better business decisions
- It can be used to identify customer advocates
Take advantage of free online tools to build your reputation
You have to take advantage of the free online tools to build your reputation and customers. Using the social media have proven to be an important avenue.
Both young and adults use the social media and 46% of these users makes it a point of decision before making a purchase.
While 3 out of five said they’ve gained more customers using the social media.
Launch before you launches the small business idea
Many new businesses are launched before even the starting of the business. These are ways to build loyal customers even before the product or service is made public for everyone.
Example: Zen Active sells Non-Slip Yoga Mat
Before it all began, here is what they did.
- They created a facebook page about yoga called I love yoga
- Began to find followers by making ads that say ‘If you love yoga like our page
- Continue to put relevant information about yoga to build engagement and authority on the subject
- After some time, they began to tell their followers about their product
- One month to the product launch they told their followers about the product.
- Everything it’s one benefit of the product and how their product is unique
- Then they created a squeeze page for the launch
- Three days to the launch, they told their followers that they’ll a message about the product and anyone who shares the information with their friends, will get a coupon to buy the product at $1.
- On the day of the launch, the product became a best seller and to this day am writing, the product is still one of the best
Tips on a successful launch before launching the small business idea
- Focus is key. Don’t focus on a broad topic. Be specific so that your target audience are people really looking for the solution to the problem.
- Don’t compete with the big guys. Don’t try and compete with already leading businesses which have dominated the market
- Always give an informative article or talk whenever you get the chance to build more credibility and authority.
- Give free stuff to build your trust.
Small business ideas have the chance to be another business that will change the world. These seven secrets will help to not only to put the business idea into action but to make it sustained.