Advertising
Advertising

Published on December 17, 2018

How to Start a Small Business That Thrives (From the Ground Up)

How to Start a Small Business That Thrives (From the Ground Up)

For most of us, it starts with an idea.

The idea can either be to break free from the corporate world. Be our own boss. Stop feeling like a cog in a machine and actually make a difference.

Or it can be more specific. Build the first or the best widget in the world. Because I’ve used every other widget out there and they are all lacking in a specific way.

The idea is to start a small business. To build something brand new. Brick by brick.

I have worked with dozens and dozens of small businesses and startups over the years. I’ve seen the good, the bad, and the ugly. I’ve seen companies go public at valuations of more than $200M, and others crumble under the weight of their own mistakes.

So if you have an idea, the spark is there but then your heart skips a beat, and you think to yourself: How exactly do I start?

To avoid some of the missteps that others have made, to build a business that thrives; here’s how to start a small business that thrives from the ground up:

1. Know Your Why

Simon Sinek has one of the most popular Ted Talks of all time, and a best selling book as well, called Start With Why. In it, he talks about how important it is to know why you are motivated to do what you do; and that why shouldn’t include “to make a million dollars” or “make my mother proud.”

It is about understanding the way you want to make an impact on the world. And it’s different, and personal, to each person.

I have found that having a solid foundation on why you want to start a small business makes all the difference. When things get rough (and they will get rough), you can return to this fundamental understanding and as a reminder of why you want to keep moving forward. As Sinek says:

Advertising

Working hard for something we don’t care about is called stress; working hard for something we love is called passion.

So ask yourself, how do I start a small business that aligns with my Why?

2. Be A Consumate Learner

The most successful Founders and CEO that I’ve met are constantly asking questions. They are confident in what they know but are aware that they can always learn more. This can come up in a few key ways:

Before you even start your business, research your market.

Then research some more. Never think that you already know everything about people who buy widgets or all the other widgets on the market.

Ask questions. Then ask some more. Find people smarter than you or have way more experience, and listen to what they tell you.

Acknowledge that you don’t know everything. This is another critical piece to running a successful business.

I have seen it so many times. A Founder asks to “pick the brain” of someone else who has gone before. They hire a brilliant person to be part of the team — an expert in marketing or finance, and then disregard what they say or tell them what to do instead of asking them the best way to do it.

The CEO is missing a critical opportunity by not leveraging the team members/ expertise and not acknowledging that this team member has a lot to teach the CEO. It’s disempowering to the team member too.

3. Roll up Your Sleeves

You might have the fancy title – CEO, Founder or Head Honcho, but when you start a small business, you are also the receptionist and in charge of data entry.

Advertising

At the beginning, you need to be willing to do all the nitty gritty work that goes into your business. You can’t be too good to do anything. The tasks might not be in your zone of genius. And sooner or later, you will be able to hire and/or delegate a lot of the smaller stuff.

But if you don’t understand all the little pieces that go into making your business great, you won’t understand how to scale your business and grow when the time is right.

4. Get in the Weeds

I have worked with many, many CEO’s, Founders, and Entrepreneurs, and most of them have one thing in common:

They are Big Picture Thinkers.

They are the ones with the dreams and the big ideas. Execution? Not so much.

So, if you are going to start a small business that thrives, you need to get in the weeds. Take a look at the details:

Why would blue be the best color for your widget? Who will take the orders that come in from outside the US? How, exactly, will you ship your products to the people that buy them?

Don’t avoid the details of your business because the big picture ideas are more fun.

Dreams and big ideas are critical when you start a business. But if you don’t have a handle on any of the details, you won’t be able to make those dreams a reality. And eventually, your business will crumble like a house of cards.

5. Build a Plan That Includes Budget, Expenses, and Profit

When you’re in those weeds, you must put together some numbers — real, researched, well-informed numbers.

Advertising

Don’t assume you’ll take 50% of the current market because your idea is great. You need to create a plan that outlines every single expense that you’ll expect in the next 6 months to a year. You need to create a realistic timeline to product launch and create estimates for how much revenue you will get from your product, and when.

Without a plan that includes numbers, you will spend most of your time reacting to what happens around you instead of moving forward with intention.

Dave Ramsey is one of the big gurus of small business and personal finance. In his best selling book, EntreLeaders, he keeps it simple. He says:

Business is not really that hard. You are, however, required to do the basics or you will not win. Budget and do the accounting, stay out of debt, don’t buy what is not needed what is not needed to make a profit, save cash, and always be generous.

And you need to have a good answer to the most important question of all – when will you make a profit?

6. Avoid Shiny Object Syndrome

You’ve put your plan together. You’ve researched your market. You know that you want to create 2 inch widgets in a gorgeous shade of blue. You will sell them for $1/widget. Bob the designer is signed up to build them. You’ll launch in June!

And then…

My neighbor Betsy told me she’d love a widget in green. Should we change the color to green? And Johnny’s teacher mentioned that she could use a widget that is 3 inches. Let’s change the size of the widget!

It’s so common. We have an idea but what if there is a better idea?

Do your research. Make informed decisions. And then stay the course. You can always pivot later.

Advertising

But if you keep turning your head toward every shiny object, you won’t reach the goal right in front of you. You’ll never launch that product by June.

7. Trust Your Team

A small business might have one founder, but people rarely start a small business all alone. There is often a consultant, a partner, a sounding board. And then, consultants, accountants, and marketing experts.

No one’s “zone of genius” covers every area. So one of the best ideas on how to start a small business is to find a great team to help get your idea off the ground. Spend critical time on the front end vetting and hiring great people. And then let them do their job.

In my years on Wall Street, I saw first-hand the impact on a business when the Founder didn’t trust their team. I had hundreds of small private companies pitch their businesses to me, with the hope that my investment bank would take their company public.

The companies that gave me the most pause, the ones that rarely succeeded were the ones where the CEO did all the talking, or when he or she cut off his team members when they tried to answer questions.

Because in my mind, if that happened, it meant one of these two things: 1) the CEO is not listening to all the other smart people in the room; or 2) the CEO does not trust his team.

Both options were a recipe for failure.

Believe In Yourself

Trying to start a small business can be incredibly difficult. We dream of the possibilities but get overwhelmed by the realities.

Know your why and believe in your abilities. Don’t try to be the best in the world or execute flawlessly. Learn and grow and keep trying.

If you do all the above things, you will be a success in whatever way you choose to define that word.

Resources About Entrepreneurship

Featured photo credit: Vitaly Nikolenko via unsplash.com

More by this author

Deb Knobelman, PhD

Neuroscientist and C-Suite business executive who writes about the intersection of mindset, productivity, entrepreneurship and how to reach goals.

How to Set Goals and Achieve Them Successfully The Most Effective Way to Measure Your Team’s Productivity How to Start a Small Business That Thrives (From the Ground Up) 10 Steps for How to Change Habits When You Feel Stuck in a Rut

Trending in Smartcut

1 How Continuous Improvement Can Enhance Your Personal Life 2 How to Use Deliberate Practice to Be Good at Almost Anything 3 How to Use the 5 Whys Method to Solve Problems Efficiently 4 10 Leadership Goals That Strong Leaders Set for Themselves 5 7 Most Important Cognitive Skills for Fast and Successful Learning

Read Next

Advertising
Advertising
Advertising

Last Updated on September 10, 2019

How Continuous Improvement Can Enhance Your Personal Life

How Continuous Improvement Can Enhance Your Personal Life

Kaizen is the Japanese philosophy and practice of continuous improvement. This concept of continuous improvement was first conceived in the USA during WW2.

To maintain the production levels and meet demand, the industry had to come up with a system that would allow for incremental progress in production rather than no progress at all – which was very much the reality the industry was facing.

This concept of consistent incremental improvement proved to be a huge success and saved the US manufacturing industry from a rapid decline.

After WW2, as part of the rebuild programme for Japan, the Japanese were invited to visit manufacturing plants through out the USA. The Japanese took this successful concept of continuous improvement and adapted into Kaizen.

This philosophy formed the base from which the Japanese have built a manufacturing industry that dominates the world today.

In this article, I’ll look into what continuous improvement is and how you can make use of this concept to enhance your life.

What does Kaizen (continuous improvement) have to do with you?

So what does Kaizen have to do with us? How can it help us enhance our personal lives?

“Persistence, perseverance, and continuous improvement are the ingredients for forming a successful person.” — Debasish Mridha

While Kaizen was originally developed to help businesses improve and thrive, it’s just as applicable to our personal lives.

Advertising

The Kaizen philosophy of continuous improvement I believe is a failure proof system that enables us to achieve and sustain our personal goals and dreams in life.

The concept of continuous improvement offers us a way where we can live our lives to the fullest by continuously learning, growing and thriving.

We live in a world of never ending disruption and change. By adopting the philosophy of Kaizen, we become more adaptable, flexible and resilient to dealing with the constant demands and disruptions we face in our lives.

What continuous improvement is exactly

The philosophy of Kaizen is based on the concept that instead of making big changes at once, the continuous improvement approach focuses on making small improvement over time.

Kaizen is often referred to as the “strategy for 1% gains”. It is these 1% gains that athletes focus on to improve their performance. The 1% gains are incremental and if you keep building on the 1% gains the rewards are phenomenal.

Continuous improvement is perpetual and so to maintain gains and improvement, you need to work on them continuously.

Your personal improvement journey is never finished! What this means is, if you are truly committed to philosophy of continuous improvement, you are less likely to quit because you are always in search of the next goal.

How continuous improvement empowers you

How many New Year resolutions have you made and never achieved over the years?

Unless you are one of the small minority who are goal orientated high achievers, maintaining motivation and the commitment to achieving your goals is hard work and dare I say it – with not much success – one big FAILURE after another.

Advertising

Hence, these are the reasons why New Years’ resolutions are never achieved.

Continuous improvement can help you to achieve any goals you set. If you commit to the practice of continuous improvement, your motivation to achieve your goals and aspirations in life will never die.

“Without continual growth and progress, such words as improvement, achievement, and success have no meaning.” — Benjamin Franklin

You will never have to struggle with the dilemma of giving up or giving in because it all became too hard.

Your achievements and success in life will be as a result of you taking continuous incremental steps toward your goals.

Continuous improvement is not about reaching the big goals in life but about taking small steps and improving and refining along the way.

How to commit to continuous improvement

If you truly desire a successful life where you are thriving, the first thing you must do is embrace and accept that your journey of self improvement and growth will never end. It is a lifelong journey of learning.

Once you have accepted that your journey to improving your life is life long, you then follow these steps:

1. Set your goals based on the philosophy of 1% incremental achievements

Remember that setting the goal is the easy bit. Keeping motivated, focused and on track to achieving any goal is the hardest part.

Advertising

The concept of continuous improvement provides you with a system or a process that if you commit to following will enable you to confidently achieve any goal you set- you are guaranteed to win.

“Instead of trying to make radical changes in a short amount of time, just make small improvements every day that will gradually lead to the change you want. Each day, just focus on getting 1% better in whatever it is you’re trying to improve. That’s it. Just 1%.” — Brett and Kate McKay of The Art of Manliness

It might not seem like much but continuous 1% improvement/achievements every day will gradually add up to 100% and the goal is achieved!

In their book The Art Of Manliness, Brett and Kate McKay talk about how the journey of self improvement and personal growth is a lot like a rollercoaster ride – scary, exciting and with lots of ups and downs.

They believe that by following the concept of Kaizen (the 1% improvement) every day enables you to get off the roller coaster ride of feeling like a failure and being angry with yourself because you keep giving up.

2. Break down the system into small actions

Continuous improvement is a journey of personal growth where you are making long-term steady progress. It is not about random bursts of improvement with fits and starts of activity. This approach to self-improvement will not give you the sustainable long-term changes you seek to improve your life or achieve your goals.

For example, if you have huge debt and you want to pay it back but it is all too much, so you hide away from taking any action. To put the concept of continuous improvement into action, the first thing you need to do is not focus on how much you owe, instead focus on creating a system or process that enables you to pay back an incremental amount each week.

Once you have created the system, you must break down the system into small actions or behaviours with the least resistance and effort. Commit to these actions on a daily basis until your original system is habit.

Commit to paying back a realistic amount each week and then increase the amount you pay back by 1% plus every week after that. Keep going until the debt is paid off.

Advertising

3. Keep track of your 1% success

The other important factor about incremental achievement is that you must measure and keep track of your 1% successes.

Evaluating and measuring your improvements are important for your own motivation and commitment to the journey. If you are not measuring your progress, your subconscious brain will kick in and sabotage your progress by convincing you that it is all too hard and you are not making any progress at all.

Your subconsious brain only believes what you tell it. Unfortunately you have told your brain a lot of untruthful things over a long period of time about how you are a failure, not motivated and never really achieved anything in life. Your subconscious brain as a result believes all these “facts” that you have told it to be true.

Measuring and evaluating your 1% successes is key to you retraining your subconscious to believe that Yes – you can achieve your goals and succeed in life!

Focus on the progress, always

Continuous Improvement does not focus on making huge gains or big improvements all at once. Instead it focuses on long-term steady progress.

When you follow the philosophy of Continuous Improvement, you won’t radically change your life but over time with consistent and constant improvement and change, you will find that you are living your life to the fullest – empowered, resilient and thriving.

Why would you not want to embrace this philosophy of incremental improvement and growth into your personal life?

“Every day you may make progress. Every step may be fruitful. Yet there will be a stretch out before you an ever-lengthening, ever-ascending, ever-improving path. You know you will never get to the end of the journey. But this, so far from discouraging, only adds to the joy and glory of the climb.” – Sir Winston Churchill

Featured photo credit: Pexels via pexels.com

Read Next