ABC of Making Small Businesses Big

You Don’t Need Much Education to Get this Done.

Sept 3, 2024

You Have a Skill: What’s Your Dream?

Whether you’re in fashion design, hairdressing, or running a small grocery shop, you likely have aspirations for the future. Perhaps your goals include:

• Earning significant profits
• Expanding to a larger shop or office space

I’ve identified these benchmarks to accommodate both those who aim for financial stability and those with bigger ambitions, such as owning a top-tier office. Both goals matter.

Have a Goal

First and foremost, you need to have a clear focus — whether it’s a skill you already have or something you want to sell. Identify what you want to offer that people need. This is your starting point, and nothing else comes before it.

Once you’ve established that, choose the goal that resonates with you most: financial security or large-scale growth. If you haven’t done this yet, make sure you’re clear on what you’re aiming for.

Create a Difference

You’ve got something to trade, and people want it. But others are offering the same thing, and customers are spread across different providers. Don’t worry — this is where you differentiate yourself.

To draw customers away from their current providers, you need a compelling difference — something that convinces them to switch to you. If you’re not different, you’ll struggle like everyone else and miss the next steps.

Ask yourself: What can I do that’s unique enough to make people choose me? This could be as simple as offering same-day laundry services where others take three days or completing industrial sewing orders in six hours instead of twelve. Your difference must stand out to attract customers.

How to Identify Your Difference

1. Find an Existing Problem: Look for a common issue in your industry that customers often face. It’s easier to gain customers by solving a problem they already have. For example, in laundry services, same-day or within-the-hour service is rare. The harder the solution, the fewer competitors you’ll have, and the more customers you can attract.

- Regularly ask yourself, “What problems do my customers have?” Over time, these problems will become clear to you.

- Another approach is to list 10 problems your customers might have each day. This will help you identify the most viable and profitable ones to solve.

2. Identify Potential Enhancements: Is there a new trend or service you can offer? Can you introduce a new payment option that encourages customers to choose you? Think creatively about ways to stand out.

- Remember, the most valuable differences may seem challenging, but they’re often easier to implement than they appear. If you have multiple options, start with the simplest one you have the resources for, and use the profits to tackle the more complex ones.

Market Your Difference

Having a difference will naturally attract customers, but you’ll need a large number to reach your goals — at least 200 consistent, paying clients.

To achieve a 10% conversion rate, you typically need to reach 100% of your target audience. So, if 2,000 people learn about your difference, 200 might try your services, and 20 will pay. Keep this system going consistently to build your customer base.

Marketing can be as simple as reaching out to your local community. Spread the word about what you’re offering differently. If it’s truly advantageous, people will come.

Get Paid and Keep Getting Paid

Remember, you’re in business to get paid. Be friendly with your customers, but always ensure you’re getting compensated for your work.

Run All Funds Through a Corporate Bank Account

As soon as you receive payments, funnel all your funds through a business account. Register for a corporate bank account with a recognized bank. You’ll need the account statements if you want to secure large investments. Remember, where your money is, your business is.

Make a Visit to Your Account Manager and Bank Manager’s Office

There are various ways to raise funds for your business, including grants, venture capital, and loans. While grants can be competitive and VCs often look for tech-driven businesses, let’s focus on loans, especially from banks.

If you’re reading this from Africa, you may have been taught to view loans with suspicion. Here’s the truth:

Banks don’t just store money; they lend it out to those who can use it productively and return it with interest. This interest covers the cost of safeguarding your money and allows banks to operate without charging you for basic services.

Money needs to keep moving. If you’re serious about your business and see that customers are buying enough to cover the loan amount, and you have assets to secure the loan, it may be time to take the plunge. Cash is king, and if you hesitate, others will fill the gap in the market.

If you have questions, feel free to ask in the comments — I’ll be sure to answer.

Upon Confirmation of Eligibility Criteria

Once you understand the requirements for securing a loan, get back to work and meet those criteria. This often means earning more money, attracting more customers, and increasing your revenue.

When you meet the criteria, go ahead and secure the funds to build your dream office. Then, keep working to ensure you don’t lose it.

That’s all for now. I hope this gives you some direction and clarity. Cheers to your success!