Small Business Strategy to Help You Grow
A small business strategy is important for those who want to push their businesses to the next level. How do you compete favorably with other existing small businesses?
When you want to start a small business, it entails dealing and understanding many issues.
This includes human resources, liability protection, intellectual property protection, sales and marketing, financing, legal, and more.
The growth of businesses is important if you must succeed like Airbnb, WhatsApp, Facebook, Uber, and many others.
However, you need a Small business strategy to grow. This requires that you do your research and ensure that everything you need for your business is ready.
Why Do You Need a Small Business Strategy?
Here are some of the strategies you need to start your business:
Understand the Challenges and Commitment of Starting a Business
It is important that you understand why you should start a business. Commitment is vital when it comes to sustaining your business.
You must appreciate the resources, energy, and amount of time needed to grow your business. We have listed some of the challenges in growing a business here:
- Creating an awesome and unique product or service
- A strong vision and plan for your business
- Cash flow and sufficient capital to keep your business in operation
- A great workforce
- Firing employees without legal liability
- Working more hours than you expect
- Rejections from customers
- Managing your business time efficiently
- A reasonable work/life balance
- Understand when to pivot your Small business strategy
Protection of Personal Assets
A small business strategy will help you protect your personal assets when you create your business as a Corporation or LLC.
You should not start your business as a sole proprietorship. This might make you risk your personal assets when it comes to debts and liabilities.
Create your business as an S corporation that will offer you a favorable condition through tax treatment.
When you create it as a C corporation, it means you are a venture capital investor, or you start your business as a limited liability company (LLC).
When you know more about a small business strategy, you will understand that these business startups are not difficult or expensive setup.
You can start your business as an S corporation, and convert it to a C corporation if you can want to issue multiple classes of stock and invite investors.
Small Business Strategy For Business Owners
If you are a small business owner, you should know that you are not completed protected or safe from personal liability when you fill a Certificate of Incorporation for a corporation.
You have to reduce the likelihood of this situation when you do things right. A small business strategy involves:
You should make use of your corporate name. This should be done by filling the name of your corporation in full, including Corp or Inc on all your documents, invoices, or contracts used by your corporation.
When you do this, it shows clearly that you have a separate entity from your business. You should make use of a proper signature on behalf of your corporation.
You do this when you use your title and the name of your corporation. You should follow this format when you want to sign contracts on behalf of your corporation:
THE NAME OF YOUR CORPORATION
You write your name to authorize as a signing officer and corporate title
You have followed all corporate formalities like issuing stock properly, following bylaws, recording the meeting minutes, holding a meeting of the Board of Directions, and others.
A simple small business strategy you should not forget is separating your funds from your business funds.
You should have a separate taxation process from your company. All the business transactions must be clearly separated from your personal transactions.
Have a Great Name for Your Business
A small business strategy you should not forget is getting the right name for your business. A mistake on your business name can affect you.
Here are some basic tips:
- Stay away from hard-to-spell names.
- Don’t use a name that could limit your business growth
- Get a unique name and a “.com” domain name
- Carry out a thorough trademark search.
Do you use a trademark or name that someone else is using to avoid a lawsuit?