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Being prepared key to business success

by Kelly Weaver
Small Business Development Center Regional Director

Be prepared – that's the motto I remember from my days as a Girl Scout. Two simple words, a very simple concept. Yet, time and again, I am surprised how hard it is for people to do. In fact, recently I was visiting with a lender and the comment was made that when people come prepared, they really stand out because it seems not very many people follow this simple concept.

The idea of something (a new business, a new marketing scheme, a new product line) is just the start. One needs to follow through and execute in order to really create something of value. The first part of execution is being prepared. Let's look at a few ways that you might be prepared in your business.

At start up, being prepared can mean things like: knowing your competition and industry; understanding regulations that apply to your business; researching your costs to start and for ongoing operation; and making adjustments in your personal life to prepare for the challenges of ownership. All of this preparation is culminated in a well-prepared business plan, which goes a long way to obtaining financing.

As an ongoing business, being prepared can include: understanding and reviewing your financials so you can make changes before it is too late; having a coordinated marketing plan so marketing dollars and efforts are well spent; understanding your staffing needs so you can hire the right talent at the right time; understanding your customers and identifying when their needs change so you can also change to continue to serve them; having/building a cash cushion for times of need (and those times will come); training your staff to better serve your customers in customer service, product knowledge, etc.; creating a good work environment and benefits to retain your employees; creating a disaster recovery plan for your business; and taking advantage of learning opportunities to improve your skills as a business owner.

Even when you get ready to exit your business, being prepared amounts to: creating the best financial performance possible several years in advance so historicals at time of sale support your asking price; identifying and documenting the intangible value that can be selling points to a buyer; understanding the going price for a business in your industry; preparing yourself mentally and financially for the change; or potentially grooming an employee or family member to take over the business.

Be prepared – there are so many ways this simple slogan can be applied to your days as a business owner and it can have great impact. Remember that not one ounce of effort in being prepared will be wasted either, for as Thomas Alva Edison said: “Success is 10 percent inspiration and 90 percent perspiration."

Kelly Weaver is a Regional Director of the Small Business Development. For assistance with this and other small business challenges, contact the local Small Business Development Center at (605) 367-5757, which offers free, confidential business consulting to start-up and existing small businesses.