Work From Home Articles, Small Business News, and Home Business Buzz

5 Traits Of A Successful Small Business

Posted on: December 31, 2010

No one ever said that starting a small business would be easy, but then again, very few things in life worth doing are easy.  The challenges that face the entrepreneur when starting a small business would seem daunting to most people, but many entrepreneurs live for this kind of excitement and cannot stand the boredom of a 9-5, steady job, week-in, week-out.

With that said, first time entrepreneurs can easily find themselves in over their heads if they jump in without first doing their market research, consulting some experienced colleagues, and doing a lot of reading.  While there’s no one stop shop for learning how to successfully launch your first small business, here’s some well-known traits of successful small businesses that you should strive for in your own startup.

  1. Small Markets, Not Small Profits
    While many bemoan the construction of another big box store moving into town as the death of all of the mom and pops, the fact remains that a large chain simply cannot meat the needs of everyone.  As an avid photographer, I know that i can get a good price on a new camera if I head to Best Buy, but there are a few local, independently owned shops in town that carry all of the obscure parts and the higher end cameras that professionals and semi-pros need.  They also service cameras and lenses in the store, whereas a camera bought at Best Buy will either be swapped out for a return (if you’re within 30 days) or you’re left to fend for yourself, dealing with the manufacturer for a warranty repair.
  2. Treat Your Customers Right
    Despite the rampant growth of national chains, there is currently a resurgence (particularly in larger cities) of smaller stores with knowledgable salesmen cropping up more and more.  What gives these small businesses and edge, and keeps them in the black, is often the dissatisfaction that many customers have found at the bigger chains, so they’ll turn to the smaller alternative.  If you start a hardware store, for example, you’ll never be able to beat Home Depot on pricing, but what you can beat them on is service, knowledgeability and going above and beyond with your customers to make sure they leave satisfied and come back your way the next time.
  3. Don’t Be Afraid To Branch Out
    While you’ll mostly be focusing on a niche (or narrow) market with your small business, a great way to grow your small business is to add on with similar niche markets, ideally in the same vein.  Take our camera store example, the one i have in mind in Seattle, opened up a second store by the same name across the street, but instead of camera equipment, it’s lighting, camera support and film.  While this isn’t a big departure from their initial business, it opens them up to more customers and gives more people who live in the neighborhood less of a reason to go to the big box stores.

Read the full article at http://www.homebusinessbug.com/5-traits-of-a-successful-small-business-10180/

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