Managing small business risk and uncertainty

It’s no surprise that being an entrepreneur means opening yourself up to risk and uncertainty – you come up with a great small business idea, spend time and money planning and then hang your shingle. Every day is different and, most often, challenging. But how much risk or uncertainty can you handle? How do you manage it?

What entrepreneurs surrender

We’re entrepreneurs too, so we’re familiar with the allure of starting your own business: Doing what you love and setting your own rules. However, we also know that starting your own business means giving up the security of set working hours, a steady paycheque and a relative amount of job security.

When starting your own business, you may use some of your own money to get going. You may not have an income for several months as you build momentum. These factors are the basic items of risk and uncertainty you can face in small business. There’s also the potential for a lack of structure, order and organization. Not to mention the small amount of worry that accompanies any new venture.

Don’t lose heart! Yes, it’s true that small business owners must be able to handle risk and uncertainty, but this skill is something that can be learned.

How entrepreneurs can manage risk and uncertainty

Here are a few tips to help you better handle the risks and uncertainties of entrepreneurship:

  • Learn creative ways to manage difficult times. No marketing budget? Try free avenues like social media and word-of-mouth.
  • Change your perspective. Can an unpredictable business situation lend itself to innovation or a great new invention?
  • Surround yourself with a strong support network that includes both trusted professional contacts and loved ones.
  • Make time for yourself. We know it can be difficult to turn off the worried part of your brain and spend an hour walking in the park, but trust us – a clear head is much better suited to evaluating risk!
  • Practice adaptability. Keep track of what’s happening in your business environment and you’ll be better prepared to anticipate or react to uncertain times.
  • Know your business inside and out. Understanding what your business is all about and what is best for it will help you take more manageable risks.
  • Don’t do anything on impulse. Some clichés are also just true, like the one that goes, “If it’s too good to be true, it probably is.” Sleep on it, plan it out on paper or speak with trusted advisors before jumping in.
  • Have a Plan B. And a Plan C too. What will you do if your new line of wedding invitations aren’t as warmly received as you’d hoped? Always have backup plans for a new product or service.
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Understand your customer to successfully market your small business

“I’m starting a social media consulting business – I want to sell my services to other businesses.  Can you give me some clear selling strategies that I should use?”

Put yourself in the shoes of your potential customer – what do you think they need to know about you and your company to buy from you?  There are usually three things your potential customers need to know whether you’re selling social media services or ballpoint pens:

  1. How is this going to help my business? (What’s In It For Me?)
  2. Why should I buy from you? (Credibility)
  3. Prove it. (Facts)

If you can give that information to your customer – with gusto – you’ll close the sale.

More proven selling tactics for small business

In addition to the three points of knowledge above, here are a few other proven tactics in successful sales and marketing:

  1. Customers buy from people they like.
  2. Customers buy from people who understand their needs.
  3. Customers like to buy “remarkable” products and services, not ordinary.
  4. Customers want to know what makes you “remarkable” – so tell them.
  5. Customers like to be heard – so listen.
  6. Customers will have objections – learn to respectfully respond to every objection.

Bottom line in sales and marketing?  Know your target market, understand their needs, be remarkable, deliver remarkable, each and every time.  You’ll be a winner.

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Tip of the Month: Working from Home

It sounds like the holy grail of employment options. Whether you’re working from home one or two days a week or self-employed with a home based business, working from the house sounds appealing for most people. Think about it. There’s no commute, you’ll save time and gas money, you don’t need to get dressed up, you can get the laundry done – what’s not to love?

Check out a few tips about working from home to help you decide if it works for you, and make the most of it.

Set some office hours. Just like you show up for work at the same time every day and leave at the same time every day, plan to do this when you work from home. Of course one of the bonuses of working from home is that these office hours are more flexible, but if you don’t plan to work, it won’t get done.

Likewise if you don’t plan an end time, you may keep working until you have everything done. The catch for most entrepreneurs is that the to-do list will keep on growing. Making time for family, friends and creative pursuits is important for yourself, which makes it important for your business too.

Leave your personal life in the living room and your work life in the office space. Keeping your work life and personal life separate is tricky when you work from home. Setting some physical boundaries for different activities can help.

Think about communication. How will you communicate for your business?  Email, telephone and online communication like Skype can make it possible for you to work nearly anywhere, but there is no substitute for face to face communication. Make a point to get out of your house and talk to people for work whenever you can. This will help you avoid pouncing on your significant other when they come home from work in an effort to connect with a live human being. Trust me – they’ll appreciate it if you take a walk over to the coffee shop and chat up the barista sometime before the end of the work day!

Setting up a strategy to manage your tasks, time, and communication will help you with a smooth transition into working from home, along with boosting your productivity. Like anything in business, plan for success!

Have you got any tips for working from home? We’d love to hear them!

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Promoting social entrepreneurship among women in Saudi Arabia

At GoForth Institute, we’re strong proponents of entrepreneurship education in developing countries. It’s a great way to help people create sustainable growth in their communities.

For this reason, we were excited to come across a blog post on Babson College’s site, talking about The US-Saudi Women’s Forum on Social Entrepreneurship, their partnership with The Wellesley Centers for Women at Wellesley College, Dar Al Hekma College, and ICF International. In this one-year program, young women from Saudi Arabia were taught all the skills they need to become social entrepreneurs. They learned about social entrepreneurship, developing leadership skills and how to create business plans. They then launched their business ideas with the support of the program.

Watch the video on Babson College’s blog for more info on this great initiative to support women entrepreneurs in Saudi Arabia.

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