Small Business Owner at Any Age

“It doesn't matter how many times you fail. It doesn't matter how many times you almost get it right. No one is going to know or care about your failures, and neither should you. All you have to do is learn from them and those around you because all that matters in business is that you get it right once.” - Mark Cuban

Still At It

I’m a senior, seventy years young and still at it. I’ve been a small business owner three times, over the years. Mine is a story of almost getting it right. Did I make a fortune, only in my dreams, so why am I still at it, because I want to and because I am among the 20% who had no savings at retirement. What little we did have was put into another small business venture, generating income online. My days are full, the year has flown by. I can’t see it being any different for the year ahead.

More Business Advice from Mark Cuban

“Don’t start a company unless it’s an obsession and something you love. If you have an exit strategy, it’s not an obsession.”

“If you’re prepared and you know what it takes, it’s not a risk. You just have to figure out how to get there. There is always a way to get there.”

Don’t start a small business unless its an obsession or you enjoy the work. If you have prepared well, and you understand the industry, and you know what it takes to be a small business owner, you will always find a way for your business to be successful. 

Use Your Own Money

Mark Cuban is an advocate of starting a business without a loan. He favours using your own savings or starting small with as little capital as possible. This way you avoid the drag on business, that loan repayments will be. There is sense in what Cuban recommends, if you can avoid the burden of owing a bank or others money, start your business with your own capital.

For some, getting a bank loan is the only way to get started in your small business. Do your homework to have a better understanding of the risk involved. If you use your house as collateral for the loan, in a worse case scenario, you could lose it to the bank. 

What You Should know

• Plan. Write it down. It doesn’t have to be long or complicated, it should state your goals and how you intend to get there. A good plan, knowing the industry you are operating in, hard work with a focus on sales will help you achieve your goals. 

• Budget. For a month’s operation you should know what your expenses are and what income is needed, i.e. sales, to cover those expenses and make surplus. Write the budget up for 12 months and as best you can allow for fluctuations in sales and expenses. Fluctuations will be due to seasonal demand, holiday periods, accountant fees, taxes, all sorts of reasons. After a year you will see a pattern that will help you better plan for them. 

• Finance. Always manage your finances diligently, accounting for everything, that way your budget is always improving with surplus. For any reason you need to apply for a loan, you have the records to justify it.

• Technology. Make use of technology, for efficient operations, to help your small business remain competitive and keep your customers coming back for more of what you offer.

• Service. Customer service is important for all businesses, for a small business loyalty from customers ensures your survival. Word of mouth from loyal customers spreads your message and is invaluable for business.

• Compliance. Be informed of what local and government rules and regulations apply to your small business, including licenses, permits, and taxes. 

• Marketing. Develop a marketing strategy to promote your business. We all want more customers, for a small business a good marketing strategy will help build a customer base.

• Network. Make contact with other experienced business owners in your industry. There are groups offering mentoring on social media platforms such as Facebook. Chatting with others in your local business area can offer insight into your community. 

What I Learned

'There is no such thing as a natural business owner. Successful business owners and entrepreneurs are not born with an innate set of skills that produce business excellence and success. Great business owners work hard, practice, study, test, think, correct, and practice some more.' 

Extract from Keith Cunningham's book, The Road Less Stupid…