Small Business Golden Rules
Last week, I talked about small business survival—or rather, the lack of survival—and the reasons small businesses fail. Today, the United States of America will inaugurate our 47th President, Donald J. Trump. Could I fire off for or against him? Sure, but I won’t. Why? Because another old-school rule, which I still believe is very valid today, is to NEVER discuss politics or religion with customers, vendors, and employees.
Why?
In the early stages of starting a new small business, you will need all the new customers you can get, and keeping them for ongoing revenue is very important. Estimating potential revenues and the number of customers it will take to make and keep your business profitable and viable is critical. Once you identify potential customers, you’ll need to develop a marketing strategy as soon as possible to get them on board and provide the funds needed to pay your business expenses and give you a living wage.
Depending on the products and services you intend to provide, and the prices you will charge, you will need to target a specific number of prospects. Once you identify the number of prospects, you will need to determine your “close rate.” For startups, this is usually unknown initially but will become clearer over time. Let’s say, after doing these calculations, you estimate you will need 100 customers to meet expenses and set you on the road to success. I’ll cover more on goal setting in future blogs.
Let’s say you’ve determined you’ll need 300 prospects to hit your goal—a goal that is challenging but achievable. This is where the rule to NEVER talk about politics or religion with customers becomes crucial, especially those you know little about. Historically, close to 50% of voters identify as either Republican or Democrat. By discussing politics, you are potentially alienating up to half of your prospects.
Another sensitive topic to avoid with unknowns or new acquaintances is religion. While it shouldn’t matter, it can, so why complicate or hinder your chance for success by bringing it up?
Starting, managing, and keeping a small business viable is a lot of work, and mistakes will happen. However, it is your job to guide your ship, lead by example, and understand that small things can make a big difference.
Keep reading our blog, or if you want to Write Your Business immediately, book a 15-minute Google-Meet meeting to explore the possibilities.
