In the current environment, small businesses have to make decisions, and some are actually braving the new world and starting themselves. Small businesses, defined as less than 100 employees, and less than 3MM in annual revenues, per the US Small Business Administration fail at a high rate, anywhere between 88% and 94% depending on the type of business and how long they have been in business, but all in their first five years.
In times of crisis, more small businesses start, usually out of necessity, start, while many more fail. In a recent study I conducted in 2019, I found there were a few characteristics among successful small business owners that included having a business playbook, strong communication, and a strong vision that was easily communicated and discussed and implemented.
The business play book was considered vital to the business success, and longevity, but what are some things that should go into the business playbook, and how does one create it? There are three strategies to have a strong playbook in place.
- Create a business map. This is a timeline of the different milestones of your potential or actual business. Putting down details of exactly when you will add employees, what goals and milestones you will hit, and when and how your leadership team will grow and build. Be very specific and detailed, and list the milestones.
- Identify a communication plan for your business, how you talk and communicate changes to your clients, your vendors, and your employees. Utilize the business map to fill in what your culture will look like and how you want to develop in a way that makes it right for you.
- Research your market, and potential customers. Identify the trends, and the people that will be a part of your business and enjoy it. If you are an existing business, identify what your current customers like, and what your competition has developed, and then create a strategy around it.