Starting your own business is one of the most exciting, empowering, and often scary things you can do. The risks are significant, but the potential rewards often outweigh those risks, and when this is the case, there’s nothing better than being a business owner. But having a successful small business requires an incredible amount of hard work, and success doesn’t come overnight.
Fortunately, there are a handful of smart practices that set apart successful small businesses from those that fail to get off the ground. With your unique selling point and smart business practices, you maximize your chances of helping your business thrive. Here are 5 factors that promote the success of small businesses.
1. A Great Business Plan
Your business plan is your “blueprint” for operating your business. Before you ever seek out funding or quit your day job, you should have a solid business plan. It should outline business operations, personnel needs, budgets, marketing processes, and revenue projections. Getting input from people with relevant experience in your industry is invaluable when creating a business plan. Your business plan isn’t static, and will evolve with time, but it’s essential to your pursuit of success.
2. Hiring The Right People
This is challenging to get right, but it makes all the difference. Many small business owners choose to work with a professional employer organization (PEO) to take care of human resource services like recruiting and administering payroll and benefits, so you can attract the employees you need who are ready to solve problems and do their part to ensure your business’s success. PEOs have been shown to keep employee turnover low and improve new business survival.
3. Adaptability and Flexibility
When you start your own business, you can count on things not going exactly according to plan. While your business plan is your blueprint for success, you must be willing to adapt and be flexible so that when the unexpected occurs, you’re prepared to handle it. Eventually your business will find its own rhythm, but particularly in the beginning, being able to adapt to the unexpected is of tremendous benefit for the small business owner.
4. Good Financial Practices
Controlling costs and minimizing debt will keep key financial resources available for core business functions. Again, working with a PEO can be a smart move. Not only can you be assured that human resource services will be carried out in compliance with all applicable laws and regulations, you can tap into the PEO’s volume buying power when it comes to things like health insurance plans and other benefits. Working with a PEO is a great way to minimize risk associated with factors like tax withholding and workers’ compensation administration.
5. Outstanding Back Office Functions
Naturally, you want to focus on core business operations, but you can’t do that if you’re spending too much time on back office functions like payroll. Many small and new business owners choose to outsource human resource services so they can go to work knowing that back office functions are taken care of and they can concentrate on the reasons they went into business in the first place. A great team taking care of back office concerns can’t guarantee success, but lack of it almost certainly guarantees problems.
Outsourcing Non-core Functions Can Equal Success
Small business success requires a solid business plan, hiring the right people, being flexible and adaptable, following good financial practices, and ensuring back office functions run smoothly. Business owners expect to wear many hats, but they can’t do everything. That’s why many of them choose to outsource human resource services by working with a PEO. For many small businesses, PEOs have an enormous positive effect on growth and success.
At SourceOne Partners, we connect small businesses just like yours with PEOs to take care of human resource services like onboarding of employees, administration of benefits, underwriting workers’ compensation, or a custom combination of HR functions. SourceOne Partners takes the time needed to understand your business and help you thoroughly evaluate your PEO options and understand how costs are calculated. We help businesses in all 50 states find the PEO solutions that help them thrive. To learn more, call 561-674-0748 or contact us online.