Business Corner: Do's and Don'ts of Successful Business - Part 2
Do's and Don'ts of Successful Business
This is the second in our series on basics of successful small business. We love entrepreneurs and what they contribute to society and the economy. And we love working with them!
The first Do we discussed last month was Create a roadmap for growth. Make plans, don't just jump in.
Don't Forget to plan for trouble was the other. For one thing, create a rainy day fund so one hard knock doesn't close you down.
Here are this month's suggestions:
DO #2: Diversify
Being a one-trick pony can work for you, but it leaves you open to a lot of risk. That is, having one large client, one very narrow geography, or one very narrow product or service. So, suggestions:
If possible, increase your customer base. That way, if you lose one large client or one industry gets hit, it will only represent a smaller percentage of your income.
Broaden your product or service offerings. Of course, being focused on a narrow range of offerings can lead to great efficiencies and profit. But keep up with your market and be sure you are aware of changes coming on the horizon.
Even a small diversification can insulate you against wild swings in your income.
DON'T #2: Wait to get help
If you are facing business difficulties, we suggest being transparent with your financial partners and other stakeholders. Like, for instance, your family. There's a true saying that "every business is a family business". Also your advisors, like your accountant, can be a valuable resource for sourcing advice and funding. For instance, Covid relief is slowly coming to a close but programs like rent and wage subsidies are still ongoing and can be a welcome source of financial help.