At our most recent Business4Women Networking Event in Bredasdorp at the Bredasdorp Square – Eat, Sleep, Shop our Speaker gave us wonderful insight into what it takes for a small business to succeed. Andre de Wet from Villet De Wet Chartered Accountants has a big heart and even more experience with businesses. He works with a variety of businesses on a daily basis and we are very grateful to him for parting with some of his wisdom.
If you’re reading this you either have started a small/medium business or you’re thinking of doing it. Either way we can all learn from Andre’s words. Below are the things you need for your business to stand any chance of success. You need a combination of these or all if you’re lucky. But there are also many success stories of businesses that have survived merely because of passion and will power so don’t fear if your business doesn’t have all of the below!
Equity means ownership. It is usually used to refer to the amount that is actually yours as opposed to the amount that is offset by debts and loans. If your business was sold and the debts paid off the equity is the amount of cash that you would be left with. When you start a new business the more Equity you have the better your chances of survival.
The more passionate you are about your business and what you have to do on a daily basis the better your chances of success. Passion is infectious and people are drawn to businesses and other people that are passionate about something.
Is there a need for your product or service? If not then you can always create one! But best to start something where there is already a need. There are many feasibility studies that you can do and we have found this one that you can download.Download your feasibility Study at the bottom of the page.
Uniqueness of your Product
The uniqueness of your product or service is also your biggest selling point. What makes your product or service unique? Why should someone rather come to you than go to the business around the corner? We also focus on the uniqueness of your business with our Elevator Pitch.
Input vs. Turnover
This is almost like your equity but can also relate to your time. As long as your turnover is more than your input (financial and time) then you are in business.
Always maintain a high standard of professionalism. The better your service or product and the service of your product the better your business will do. Word-of-mouth is still one of the best ways to grow your business and you achieve this best when you are professional.
Finding the right staff and keeping them is always a challenge. Make sure all your t’s are crossed and your i’s dotted when it comes to staff.
How will the rise and fall of the economy affect your business? Some businesses are more affected by this than others. Do your homework on this.
This shouldn’t be too big a problem for a start-up business. But just be aware of the dangers of theft and make sure you’ve got the proper security systems in place. This accounts for staff as much as for outsiders.
Whether you allow your customers to buy your services or products on credit can very much be dictated by your industry. Some businesses don’t have a choice and wouldn’t survive if they refused to sell on credit. If you have a choice don’t offer credit. Especially if you’re a service provider. Customers never see the value of your Service AFTER you’ve delivered it!
Do some research to find the best suppliers. Suppliers that are willing to give you goods/services on credit might help with your own cash flow. And try to avoid suppliers that are known for bad service!
This can be a big money drainer and it won’t be easy to find the right balance between too little or too much stock. If you carry too little stock you might lose customers, and if you carry too much stock your cash flow will suffer.
Thank you again to our Speaker: Andre De Wet – Villet Inc. Chartered Accountants