06 May Focus and Efficiency: Top Tips for SMEs and Sole Traders

Starting up a small business takes guts and nerve. It also takes an ocean of other things, such as investment, skill, dedication…we could go on, but we think you probably already know this.

And to keep a small business afloat takes drive and determination, as well as a small amount of good luck (who could have foreseen a two year worldwide health emergency when starting up their restaurant business in 2019).

Here we offer some well-honed advice for small business owners compiled from around the internet from such luminaries as Theo Paphitis and Steven Bartlett (the newest Dragon) as well as from other top business websites.

Ten Top Tips for small business success

There are so many things to think about as a start-up, but these key points on focus and efficiency could be the difference between success and failure.

1 – Knowing when and how to say ‘no’
Osome.com says; “Saying no might seem like a wrong step to take for entrepreneurs.” But, you shouldn’t let the prospect of more work or more orders stretch your business capabilities too thinly. Providing a poor service or product could be worse than saying you’re unable to fulfil a request.

If you have to say ‘No’ to something, apologise and suggest a time when you could fulfil the request. If the consumer is genuinely interested in you and your product/service, they may be prepared to wait. Keep in touch and update the potential client as often as you can.

2 – Prioritise your workload / Assign and maintain deadlines
It may sound obvious but this is a key point according to Osome – each day/week/month you should evaluate the projects ahead and make a clear list of what needs to be tackled first. As you work through the various stages of each project, the order of the list might change depending on different circumstances, such as availability of staff, equipment, or materials, but it’s important not to miss out on an opportunity because you are stuck on something that could be completed at a later date.

As you work through your priorities, each task should have a clear goal end-date. If the deadline is not met, you need to be asking yourself why the project was not finished in time and how you could prevent a similar delay in the future.

3 – Hone your investment pitch
Theo Paphitis tells smallbusiness.co.uk that remaining clear and concise during an investment pitch (or any pitch for that matter) is really important. He adds that entrepreneurs (and anyone seeking investment or giving a sales pitch) should get “straight to the point and not ramble on”.

4 – Never underestimate passion
Theo also says that passion is a key part of any small business and that it will help get you through tough times.

If you are passionate about what you are trying to achieve, this can be a key driver – self-belief and belief in your product/service is crucial. If you don’t believe in it yourself, how will you convince others to buy/invest? It may sound obvious but if you can’t find the passion, you may need to think hard about whether you are in the right business.

5 – Know your market and your industry
You may have the best idea for the best product or service (in your opinion), but if there is no need for it in the current market, you will have no place to go with your business. The Entrepreneur’s Handbook suggests that it’s a good idea to read industry news stories and to seek up-to-date industry-specific information relating to your chosen product or service. This sort of information can be found in industry journals and on the websites of professional associations.

Finding out what’s popular or performing well and latest industry innovations can be really useful in preventing major business errors. It’s also a good idea to explore current development and trends in areas that influence your particular industry sector.

6 – Let customers know why they should choose you/your business
Theo Paphitis says that if your product/service is in a higher price bracket to other available suppliers you need to let potential customers know why they should spend extra for your brand. It sounds simple, but it takes research and canny marketing.

Avoid being too negative about your competitors, but try to explain clearly why your product or service is a better choice. Think of all the things that you are passionate about when supplying your product or service (see point no. 4) and make sure you get this across to your customer – some of them might even have the same passion.

7 – Preparation + luck = success
Steven Bartlett tells smallbusiness.co.uk that timing was a major factor in his business success. He uses a surfing analogy: “Think of it as a wave coming into shore. Then you have to pick a surfboard and hope it brings you into shore.”

Basically, business and commerce keep on going, perpetually. You prepare to enter the market by picking the right product or service and knowing your industry. Sometimes luck will play a part and you will swim, but if luck is not on your side you might sink – being in the right place at the right time can ultimately make your business a success.

8 – Employ people with the same vison as you
Steven says that when he started his business he hired an employee almost immediately. That employee had been on Jobseekers Allowance and was invested in Steven’s vision. He adds that there are likely to be people around who will work for free or a low wage because they are “hungry” to show what they can do and gain experience.

Whilst we’re not advocating exploitation here, there are legitimate ways of getting strong, potentially ambitious and successful people on board as you start your business. They may not stay with you forever but they might be crucial for getting your business off the ground.

9 – Adapt and reiterate
Build, test, iterate, reiterate, pivot – these are fundamental actions for all start-up businesses. The Entrepreneur’s Handbook adds that it’s impossible to predict exactly what’s going to work in your market space, so being adaptable and prepared to change can be the difference between success and failure.

10 – Taking care of business
This one is directly from the Tredstone Risks team: register with HMRC and get insured as soon as you start your business. These tasks might feel like something you could delay until you start making money, but this is a risky strategy, and, in terms of HMRC, could see you facing costly penalties.

Similarly, you should research what types of business insurance you are obliged to purchase; employer’s liability insurance is a legal requirement for any business with employees, even if it’s just one person and certain types of advisory business are also required to have professional indemnity cover in place.

You might feel that other types of small business insurance would be an unnecessary drain on your start-up capital, but if your entire stock and business premises got wiped out in a fire, business insurance could be the difference between starting again or having to give up your dream.

Talk to experts

One overriding piece of advice is to always get the best advice. So, when it comes to purchasing your business insurance package, it pays to talk to people who know all about this sector of the insurance industry.

Powered by City Insurance, Tredstone Risks only provides business insurance products and specialises in small businesses and sole traders. Give us a call today to talk about your needs. We won’t try to sell you products you don’t need and we will keep the whole process as simple and straightforward as possible.