This article contains general information and is not intended to provide information that is specific to American Express, or its products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Get off the ground with these helpful tips selected just for entrepreneurs.
General Entrepreneurship Tips
When starting your own business, no matter your industry or what you’re looking to provide, there are a few things that you may want to keep in mind.
1. Focus on the business, not the offering
Fall in love with the idea of owning your own business, not with a specific product or service. Being too enamored with your offerings could hamper your flexibility. The ability to fail and bounce back quickly by pivoting in a new direction is invaluable for entrepreneurs.
2. Always get it in writing
Having agreements in writing is a basic practice that allows you to keep a record of the terms all parties aligned on and reference them later if needed.
3. Break big goals into small pieces
Consider creating quarterly, one-year, and five-year strategic goals. Those quarterly goals can further be delineated into monthly goals, which can inform your day-to-day business operations and help keep you on your chosen path to success.
4. Keep your day job
Even after you launch your new venture, keeping your regular job might give you the security of a paycheck while you try to build a successful business. It could also make it easier to make the leap to independence when the time comes.
5. Recognize when you’re most productive
If you’re a morning person, schedule meetings and get your difficult tasks out of the way first thing. If you tend to be a night owl, you have the flexibility to sleep in, start slow, and burn the midnight oil. This is one of the great things about owning your own business.
6. Create and stick to a daily routine
Even if you’re running your business from home, waking up, showering, and having breakfast before sitting down at your computer – even if it’s at your kitchen table – can do wonders for your motivation.
7. Get feedback from customers early
When your product or service is in its early stages, build an advisory board of potential customers who are willing to weigh in on your ideas. Their valuable feedback could help you to fine-tune your business’s selling proposition: the benefits or original features of your offerings that will lead clients to choose you over competitors.
8. Work smarter, not harder
Put systems in place for the things you do every day. Look for ways to increase efficiency, which could in turn boost your bottom line.
Making use of small business technology can be an easy way to increase your efficiency.
9. Delegate instead of taking on everything
As a small business owner, you might be tempted to try to handle everything on your own. But learning to delegate can be crucial for successful entrepreneurs. Focus on what you do best, then hire people who share your vision to take on tasks that aren’t in your wheelhouse.
If you’re unsure where to start, spend a week or two writing down everything you do. Then, scour that list for tasks you can delegate or outsource.
Additionally, hiring an experienced accountant and attorney could be worth the additional expense.
10. Hire for more than just skills
When it’s time to expand your business and add employees, consider candidates who have more than just the right skill set. Look for individuals with creativity and personality to make a splash in your industry. If you already have a robust professional network, take advantage of your contacts to find the ideal candidates.
11. Develop a support system
You can connect with a mentor through your local chapter of the U.S. Small Business Administration.
Marketing, Social Media, and Public Relations Tips
Whether you’re looking to set up your first social media account for your business or are seeking to better understand your target audience and the type of messaging that may motivate them to buy, these tips can help you get started.
12. Learn about your target audience’s social media habits
Get familiar with where your target audience spends time on social media and meet them where they are to make a connection.
Although social media marketing can be overwhelming for small business owners, try to engage authentically without being overly promotional. For example, if you’re starting a running shoe business, you could join local online groups for running enthusiasts. Posting advertisements for your business may not be allowed in certain groups, however, so be sure to check before you begin sharing details about your business.
13. Separate personal and professional social media accounts
You may already use social media in your personal life, but don’t make the mistake of treating your business’s social media page like your personal social media page.
Take the time to learn about social media marketing strategies so you can time your posts and develop your content in a way that best engages your followers. And remember to make sure you follow the rules of the social media site related to promoting your business.
14. Create actionable content for social media
Become a thought leader in local and social media by creating and sharing content that provides value to your customers. Clients following you on social media may be more inclined to pay attention if your content is more engaging. For example, you could encourage them to interact with a poll or ask them to comment their opinions on something you share.
15. Create a basic press kit
This should include:
- Brief biographical sketches of you and any other executives
- High-quality professional headshots
- High-resolution versions of your logo
- A fact sheet about your company
- Any other relevant information about your business or offering
Store your press kit in an online cloud storage system so you can quickly share a downloadable version with others upon request.
16. Set up industry news alerts
This can help you to stay informed about your business, industry, and competitors.
It can also assist with social media posting and networking. These alerts could help you share relevant content on your social media accounts.
17. Lean into your local newspaper
Connect with your local newspaper or community news site and offer to write a column on a relevant topic. This could help boost your status within the community, and if it’s published online, it may very well drive business to your website and increase your search engine rankings.
You could also work to build relationships with journalists, so they come to view you as an expert source.
Customer Engagement Tips
Successful customer engagement is about more than just providing excellent customer service when things don’t go as planned for your patrons. Use the tips below to develop an engaged and reciprocal relationship with your customer base to encourage them to keep coming back or refer your business.
18. Use a personal touch
In this tech-driven era, a personal touch can go a long way with your customers. Whether it’s a handwritten note to a new client or a gift basket after a big order, clients who feel appreciated could be more inclined to come back again and again.
19. Try grassroots marketing
Grassroots marketing can offer a valuable tool for getting to know your clients, particularly when you’re first starting your business. Take the time to meet your desired audience in the community and learn about their wants and needs. This can help you develop a product or service that fills an untapped niche in the market by solving a specific problem for your clientele.
20. Consider promotional offers to attract customers
Small businesses can attract new customers by offering special deals to try their products. This might mean things like buy-one-get-one-free offers, no-obligation trial periods, etc.
21. Build a referral program
Your best customers might result from word of mouth, so offer clients who tell others about your services a token of your appreciation.
A credit on a customer’s next purchase could give them a great reason to spread the word. Remember that unsatisfied customers may be more vocal with their friends about your business and any negative experiences they may have, so try to turn the tide by encouraging people to share good news.
22. Reward customer loyalty
Establish a loyalty program to reward your best customers. Think outside the box to come up with ideas that would be cost effective for your business and still enticing enough to encourage actions from your customers.
Financial Tips
When seeking financial advice, it’s always best to consult a professional. Doing so can allow you to get the information that best fits your business’ situation and needs. These tips can help to highlight some of the steps you may want to consider as you begin to build your business.
23. Separate personal finance from business finance
Even if you’re starting your small business as a side gig with a shoestring budget, keep records of your finances.
Set up your business books to keep track of income and expenses. Hire a small business accountant if you’re unfamiliar with the process. They can advise you on requirements and best practices so you can determine if you’re making optimal use of your finances.
Using a business checking account instead of a personal account can also help to keep finances separate.
24. Create a breakeven analysis
Figure out how you’ll make a profit by creating a breakeven analysis. This tool lists all of your business expenses, helping you project how many customers you need before you break even.
Along with good cash flow management, a breakeven analysis can be a road map to set your benchmarks for success.
25. Consult an attorney to decide whether to incorporate
Setting up a business entity such as a corporation or a limited liability company could offer important potential advantages. Consult an attorney to learn more about the pros and cons of incorporating.
26. Lower expenses by adjusting your physical space
The lower your expenses, the higher your profit margin. If you don’t need a physical location, such as a storefront, consider running your business virtually.
With so many online tools available – for everything from storing your files to connecting with clients – you may be able to save money by investing in technology and forgetting those monthly rent payments.
27. Avoid penalties by registering your business fully
Research and obtain the required business registrations, licenses, and permits in your state and municipality.
Requirements vary by location and the type of business. Your local Small Business Development Center can provide guidance on those that apply to your venture.
28. Learn the benefits of an Employee Identification Number (EIN)
Check with the Internal Revenue Service (IRS) online to learn more about whether you are eligible for an EIN and how to apply for one.
The material made available for you on this website is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.