Small local businesses have always been the heart of a thriving community, the favorite place to go with your friends and neighbors, or a shop that you’ve owned for generations. While small independent businesses still make up the most of the US economy (in terms of # of entities), large chain corporations take up the vast majority of the market portion. Although it is understandable given their scope and scale (who hasn’t shopped at Target or ordered pasta at Olive Garden?), our lives would be much less enjoyable without the Moe’s Taverns and the Drunken Clams of the world.
How can small local business owners position themselves to grow a sustainable business? We suggest two main pillars of small business success – Branding and Financial Stability – among many other important management practices, which have been discussed in previous posts.
First is to focus all attention on building an approachable and professional brand. From signage, logos, and interior design to how you treat your employees and customers, a brand is constructed through multifaceted ways. Now, the secret sauce to spice up your small business, however, is not all these Business 101 practices. In fact, one of the strongest factors in determining business success (according to many, many venture capitalists) is the persona of the owner.
A persona is different from an individual’s personality in that it is a structured/crafted character. Take, for instance, the celebrity chef Gordon Ramsey. Although he is known to be jovial and friendly outside of the kitchen, it’s all business when he steps in as chef. For small businesses, it is especially important to emanate a positive vibe and build genuine relationships with all stakeholders, as owners are literally the “face” of the business. Being present at your own shop to meet and greet customers or influence employees directly is something that big brand companies can never do.
Financial stability for small business owners is all about cash flow. The ability to purchase inventory in good terms, pay employees on time, and invest in future growth are all imperative activities for a successful business, and perhaps the greatest differentiator for the large chain corporates. Most, if not all, small local businesses don’t have the luxury to borrow tens of thousands of dollars at bank rates due to a lack of business history, imperfect credit ratings, or sometimes major banks will simply not deal with smaller players.
Whether for growth purposes or to maintain a stable operating cash flow, it is important to prepare and search out reliable small business finance companies, such as LVRG, who provides the working capital you need, when you need it. Nowadays, small business owners can benefit from highly efficient and competitive online merchant loans and other small business loan options that will meet the needs of a local business.
In summary, a small local business can fight out the tides of the Wal-marts and Amazons of the world by forming a unique branding relationship with the customers and employees, all the while preparing for opportunities of growth or possible economic downturns by opening up the lines of communication with one of the countries most trusted, and reliable small business funding company, such as LVRG Funding.
Hope these tips help!