What Should All Small Business Owners Know About Their Companies?

Millions of people across the country run their own small businesses, and the likelihood is that each has his or her own ideas about how best to operate over the course of a year. However, there are also a number of key principles which are typically going to remain true for most of these companies, and which it may therefore behoove entrepreneurs to learn.

Perhaps the biggest of these is that risk aversion can be extremely damaging to small business success, according to a report from the Charlotte Observer. All small business owners took a huge chance in starting their companies, because they could not be sure that they were going to have any amount of success in doing so. Many left good-paying jobs in their fields, and some switched industries altogether, so the idea that they’d stop taking risks after finding some amount of success is a little worrisome to many experts.

Julie Haack, president of Donald Haack Diamonds and Fine Gems, told attendees at a recent small business conference in Charlotte that they shouldn’t just seek out “yes men” – consultants who will only tell them what they want to hear, the report said. They should also try to get honest advice about what they’re doing now and how they can improve in the future, even if that information might sometimes be painful for them to hear.

Smart strategizing is key
Meanwhile, entrepreneurs should also keep in mind that all businesses run into a little difficulty sometimes, and that it should serve as a motivator, not a deterrent, the report said. Owners who can create contingency plans that will help them navigate these more difficult waters will, in turn, also be the ones best positioned for success. This is going to be especially true for owners who attempt to grow their companies.

“This is chess, not checkers,” Patrick Steptoe, founder of the health food company Vegan To-Go, told attendees, according to the newspaper. “If you weren’t doing anything, there wouldn’t be any obstacles in your way. You have to figure out if you’re going around them, over them, under them or sometimes, through them.”

Owners might therefore want to consider the ways in which improving their bottom lines by finding more affordable small business insurance might benefit them going forward. If they can reduce their costs for commercial insurance and other policies, they might be able to save thousands annually.