Launching a business isn’t for the faint of heart. According to the U.S. Small Business Administration, just 50 percent of businesses survive five years. Whether or not you land in the right half of that statistic is largely dependent on how you focus your efforts in the early days of your venture.
Eight years have passed since we hung out our shingle at Silver Bridge Coffee Co. When I consider ROI, four strategies stand out as contributors to long-term business success:
Planning matters
Think you don’t need a business plan? Some entrepreneurs steer away from creating a plan, usually because they’re intimidated. They are passionate about their idea; it’s personal. Rather than plan, they may go by the mantra that ignorance is bliss.
It isn’t. Cutting that corner is the biggest mistake a small business can make. In fact, some statistics indicate that having a business plan can double your chance for success.
For those not sure where to start, ask a fellow entrepreneur for advice. Or consider contacting the Small Business Development Center, which offers free business counsel. There are also consultants who can help.
Even if you have to pay for a business plan, it’s money well spent.
Know the competition
This goes hand-in-hand with planning. You must know your competition and have a clear understanding of product demand.
Try five or 10 of your competitors’ products and compare them to yours. Then ask yourself: Am I producing a better product? Which customer need is my product meeting?
Don’t hesitate to ask friends and family for feedback, but allow them to do so anonymously to avoid conflict and insure honest feedback.
Another great place to gather feedback is at events. In our case, farmers markets helped us determine product popularity and learn more about our customers.
Build a brand
Most small businesses can’t afford to pay for large-scale marketing. But don’t skimp when it comes to building your brand identity. A company’s logo is integral to success. It helps you stand out and creates recognition.
Does it require time, effort and money? You bet. Some business owners may try to go the discount route at first — only to redesign. Do it right the first time.
Start by finding logos you like from nearby companies, and ask who designed them. Describe to the designer you choose what your logo should portray, and ensure it communicates brand significance.
After a concept is developed, test it. Think of your five-year goal and create a logo that will grow along with it.
Scale for success
If you’re looking to move up the growth continuum, think about what it will take to level up. Will the same equipment meet your needs in three and five years? Don’t let bargain hunting stunt your eventual growth.
For our company, we leveraged our own funds and a small state grant to purchase new, single-cup packaging equipment that will facilitate our growth. But don’t rule out crowdfunding or traditional loans.
Though access to capital has been a long-standing problem for women entrepreneurs, it can fuel your startup or expansion. Check out the U.S. Small Business Administration site for information on loan programs.
Lorraine Walker is the Founder of Silver Bridge Coffee Co. Lorraine started her company in Gallipolis in 2008 and runs the national retail and wholesale coffee roasting company as a family business. She also has created the (614) blend, which consists of coffee from three different regions of the world to celebrate Columbus. Silver Bridge Coffee Co. generates 70 percent of its sales in Central Ohio.
