Six Tips for a Successful Business

Successful businesses come in all shapes and sizes. While there may be no magic formula or special sauce that can guarantee success, there are characteristics that many successful businesses share. Here are some tips to help increase the chances of building a successful business.

1. Choose an industry you can leverage previous experience and relationships. Do not rush into a business in which you have little or no experience. Lack of experience can lead to steeper learning curves. While entrepreneurs by nature can learn quickly, it helps to avoid reinventing the wheel.

2. Have a thorough business plan. Your business plan will inform potential investors and lenders about your business and (hopefully) entice them to invest. But it should also serve as a roadmap for starting and running your business. If your business plan is thorough, you will know if your business is viable and whether you can afford to fund it during the startup stage and beyond. Set realistic goals, taking into account worst-case scenarios and planning for these eventualities. See the SBA Business Plans center for more information.

3. Get an accountability partner. Many business owners go into business for themselves so that they can be their own bosses. What many fail to realize is that even CEOs of major public companies are accountable to a board of directors. Business owners who have a mentor, accountability partner, or business coach consistently outperform the competition. Getting another perspective is always valuable, and it may spare you from making costly miscalculations. Experience helps when looking for investors.

4. Differentiate your business. Consumers today are overwhelmed with choices. How will your product or service stand out? You may be able to remain meagerly profitable in a saturated market, but unless you give consumers a compelling reason to choose you over someone else, you will not thrive. You may have to close up shop if your revenue cannot meet all of your financial obligations and retain a reasonable profit.

5. Provide stellar customer service. Another way you can differentiate from the competition is through stellar customer service. When it comes to customer retention, business owners should always look for ways to improve their knowledge and skills, as well as those of their employees. Happy customers are paying customers, which keeps the cash flow positive.

6. Select a financing partner wisely. All lenders are not created equal. Most bankers will say they want to loan you money, but as the layers of the onion are peeled away, many potential lenders are not comfortable with small business or the potentially low fixed asset base (collateral). Identifying the credible lenders in your market that have a track record for providing financing for small businesses is an essential element for success. The wrong financing partner can result in under-capitalization or worse yet, passing on a great business opportunity based on the recommendation of an over-conservative lender.

Finding a Business to Buy

Finding a business to purchase should be the final step in a process that begins with self-evaluation and a sound financial assessment. Before buying a business, you should determine what type of business you are qualified to run and would enjoy owning. Based on your own skills, technical knowledge, abilities, interests, and personality, you can determine which type of business will provide you with the best opportunity to use your talents most effectively and turn a profit. There are various assessment tools available to assist in this process. Finding a business that compliments your natural skills is an essential element to a successful journey.


A few questions to consider in your personal assessment include:

• Are you technically oriented or do you fumble with manual tasks?


• What hours are you prepared to work? Weekends? Evenings?


• Do you enjoy interacting with people or are you somewhat shy around people?


• Do you enjoy managing people or do you prefer to work alone when possible?

Along with answering questions about personal fit, you should know how much you can comfortably afford to spend, and how much you will need the business to generate in cash flow to fulfill your short-term financial needs. The process of finding the right business for you takes thoughtful consideration of a number of factors. The team of professional intermediaries at ABMI can help. When you are ready to start asking questions and begin the exciting journey, contact ABMI.

ABMI Mergers & Acquisitions
(913) 341-6300