Last Updated on February 3, 2022 by Scott Charleboix
In this post, 4 Tips to Run a Successful Small Business in 2022, running a business is challenging to say the least. At every stage, entrepreneurs face new problems whether that be related to funding, sales, expansion, and more. In such situations, having strong business foundations plays a key role in deciding whether the organization thrives or struggles. Here, PinArtwork dives into four ways you can create strong foundations for your small business.
4 Tips to Run a Successful Small Business in 2022
Choose The Correct Business Structure
Your business structure will form the bedrock on which everything else operates, hence it’s important to choose the option which best suits your current and future business goals. For small business owners, forming a Limited Liability Company is a great option, here’s why:
- Low Taxes: With an LLC, you’ll only need to pay taxes only once, when you file your income tax returns, unlike a corporation that has double-taxation.
- Easy Registration: As reported by ZenBusiness, by using a formation service you can register your LLC within a matter of days.
- Limited Liability: As your business becomes a separate legal entity, it protects you from being personally held liable for debts or damages.
Develop a Culture of Planning
While you may have high goals for your business, you need a roadmap to get there. As a small business with limited resources, each penny and second needs to be accounted for. Whether you’re a one-man show, or have a team around you, before diving into any project it’s important to invest time towards creating a well-thought-out plan. For instance, if you’re launching a new marketing campaign, your plan should answer the following questions:
- What is the objective of the project? Is it brand awareness or customer acquisition?
- What is the duration and estimated budget?
- What is the expected outcome of the project? For example, it could be acquiring 100 leads or gaining 100,000 impressions.
- Who is the overall project owner?
Having a SMART plan doesn’t convert into a 100% success rate, but it helps to set expectations, execute and compare performance post-completion. Additionally, when you have concrete plans for each project, it reduces ambiguity regarding responsibilities and timelines.
Maintain Sound Financial Standing
A common problem faced by entrepreneurs across the country is the inability to keep up with growing costs which in some cases can lead to business closure. A solution to such a predicament is good financial planning which involves balancing current and future costs.
If currently you can comfortably manage business costs but foresee an increase in expenditure in the coming months, opt to apply for a loan at the earliest, rather than in the future. This is for two reasons:
- Given that your finances currently are strong, lenders will more likely be willing to provide you with the loan.
- Banks often take a set amount of time to provide loans. Hence, if you apply when you are in urgent need of cash, you’ll need to use other forms of debt such as credit cards to survive until your loan is sanctioned.
Leverage Social Media
According to research, customers in the US predominantly access social media from their phones and spend between 1-3 hours daily on those platforms. Based on this statistic, creating a strong digital presence should be a business priority. Social media is a powerful tool that allows you to connect directly with customers. While it is no substitute for providing in-person service or sales calls, it provides your business a platform to have a direct conversation with customers.
When it comes to making social media strategies, strive to strike a balance between customer acquisition and retention. While increasing the customer base will fuel your business growth, having repeat customers is what ensures a steady flow of income and develops a loyal following for your brand.
Two social media platforms that I like to use to my promote my blog are Pinterest and Facebook.
While there is no way to eliminate challenges, having a strong business foundation will provide you the confidence to tackle challenges head-on and allow your business to rise above the rest.
Guest post by Gloria Martinez from WomenLed.org
About the Author: “Gloria Martinez started WomenLed.org to celebrate the advancements women have made and inspire women to become entrepreneurs and seek promotions in the workplace. Through this medium, she also shares her business expertise and vision to spotlight women’s achievements in the workplace.”