16 Hard Truths About Running Your Own Business

Are you curious about how to run a business? According to the most recent figures released by the Small Business Administration (SBA) in 2020, there are over 31 million small businesses in the United States. But as you might suspect, running a small business isn't for the faint of heart. It requires extreme focus, energy and the flexibility to adapt.

The trick, some might say, is to go in with open eyes. Check out these pointers to help you focus on what can make a small business thrive.

How to Run Your Own Business

Running a successful business starts with your definition of "success." Not every business has international aspirations or global growth in mind. This is why a solid business plan is essential to help you chart a path for the kind of growth and success you envision.

Don't skimp on market research. Starting a business in an oversaturated locale or market niche can only hinder your ramp-up to profitability and long-term chances for success. Successful businesses always keep an ear to the competition and their customers equally for how their business can satisfy current customers and earn new ones.

Establish clear goals is also a key to enduring success. To help you always have clear data to power your decisions, be sure to invest in talent and technology that will help you keep a pulse on previous performance and future prospects.

And don't forget about your human resources. From hiring great talent to specialists managing your day-to-day HR tasks like benefits, payroll, and keeping your business compliant with all necessary regulations, human resources are an indispensable cog in your business wheel.

Finally, assess and measure. Regular review of your company goals and performance can help keep you nimble and adjust your strategy. Running a small business isn't just about making a plan. It's also about making the necessary changes along the way to stay competitive.

Why Businesses Fail

Many small businesses struggle to stay afloat because of low cash flow or sales. So how can your business avoid this cashless trap? Understanding what leads to low sales or revenue can help.

• Their services aren't needed. If the market is already saturated or a business is solving a problem that doesn't need solving, it could be doomed from the start.
• They skimped on marketing. No matter how strong one's network is, relying on word-of-mouth only is unlikely to bring success. A strong marketing plan is a must.
• They passed on market research. Great market research helps inform things like pricing, shipping and return policies and even business hours. If a business isn't listening to the market, it may find that customers will stick with brands they know and trust instead of giving yours a go.
• Their customer service is lacking. Why would a customer go somewhere they're treated poorly or ignored? Without a focus on customer service, it's nearly impossible to retain customers.

16 Hard Truths About Running and Owning a Business

Is starting a business hard? No. But beyond the initial paperwork and putting up a website, successfully running a small business is another matter. Use the tips below to help feel inspired the next time you hit a predictable difficulty. They're also useful when asking, "How can I make my own business more successful than it already is?"

1. Your target customer isn't "everyone."

Not even big box stores have something for everyone. And sure—it’s easy to think that your product or service has widespread appeal (who wouldn’t want what you have to offer, right?). Skip the selling and attempts to convert. Find the people who will love what you do (and all the things you don’t do). Preach to your loyal, target customers and they’ll share your brand with more people just like them.

2. It's not just what you do. It's what, who, why and how.

There are roughly a gazillion other people in this world who do what you do. What you do isn’t the magic. The real magic comes from a combination of why you do it, for whom you do it, and how you do it. What + Who + Why + How = Awesome. Running a small business is all about learning this equation.

3. Value lasts. Cheap is fleeting.

How many “things” have you replaced since starting your business? Odds are, they’re the things you scrimped on in the name of "now." Remind yourself that the next time you’re tempted by a cheap solution and go for value—what’s best, what will last and what’s best for your business and customers. Cheap and a great value sometimes happens, but it’s rare.

4. The customer isn't always right.

They’re not. But you can’t make a living without your customers. So where’s the middle ground when someone is unhappy but definitely wrong? First, listen. Second, weigh the options—does it make sense to give a bit in exchange for appeasing someone who’s having a bad day? Finally, stick to your principles. Some people will just never be happy and are looking for a reason to complain. If you build your business around the complainers, you'll be out of business in no time.

5. Your business bank account isn't a piggy bank.

One of the most important principles behind learning how to run a successful business is a commitment to organized finances. Get a CPA and a bookkeeper. Establish your business's credit. Everything you buy once you start a business isn’t a business expense (shall we ask the IRS?). The day you can look at your business finances and run a real profit and loss (P&L) statement should be one of the happiest days of your life. The next happiest moment will be the day when you discover that your business is profitable. You can’t fix your business finances if you don’t know what’s going on behind the banking curtain.

6. Tech won't fix a bad business model.

It doesn't matter how many devices you have or if you’re using Silicon Valley’s latest and greatest app. Tech is a tool, nothing more. Upgrading your computer won’t make your business run better. When a piece of technology isn't working, ask what’s not working with the business model. Learning how to run a business is all about repeated analysis of what is and isn't working, and the reasons behind both.

7. You can't do everything.

You’re awesome. You’re talented. You’re motivated and the reason this whole business thing gets done each day. But you can’t do everything. You're a small-business owner, which is a brand of superheroes in its own class. But when you do everything for so long, you’re bound to break.

8. You're going to have to learn to outsource.

Here's a less-discussed truth behind learning how to run a small business: outsourcing is key. Finding people you trust to help you run your business is paramount. And since you can’t do everything (and certainly don’t enjoy doing everything), find people who are great at and love doing all those things you loathe. You might not be able to afford to outsource much when first starting out. As you grow, however, remind yourself that there are people to help you lighten the load and run leaner and meaner than you’ve ever run.

9. You are not the most important asset in your business.

Shocking, right? You open the doors and foot the bills, but none of that happens without your customers’ permission. Your customers are, and always will be, the most important asset your business will ever have. Strive to repeatedly exceed your customers' expectations. Running a small business is all about cultivating your most important asset.

10. Listening is the best business skill you'll ever acquire.

To your customers. To your employees. To your community and industry colleagues. If business owners listened half as much as they spoke, blogged or posted on social media, imagine the heights to which every business could grow. Try counting to five before you chime in the next time someone shares a thought with you. And try listening when no one thinks you’re listening.

11. Infrastructure—it's what's for breakfast.

Growth is the goal, right? More revenue, more sales, bigger and better customers. But what happens when the volume you crave comes along and you haven’t built a business that can support it? When learning how to run a successful business, it's easy to overlook infrastructure and make growth moves before you're ready. But when making decisions to scale, always ask, “Do we have the infrastructure to support this move, and if not, how can we create it?” Less full speed ahead and more full attention to the most important business meal of the day—it will fuel and support everything you do as the day (and years) go on.

12. You need a great team.

You can’t do everything alone. Find people who are committed to building your dream and vision. Some of your greatest ideas will come from people with the gift of being on the outside of your head looking in. This makes having an amazing, motivated team all the more important.

13. Don't hire people you'd never empower.

Again, since you can’t do everything, you need people on your team whom you trust to act in the best interests of your business. Hire wisely and invest in training and mentoring. Great employees all start off simply being good, but they’ll need your guidance along the way to achieve growth. Don’t hire anyone whom you don’t feel you could ultimately trust to act in your business’s best interest.

14. There are no overnight successes.

If you hear otherwise, it's a lie. Success comes from an artful combination of humility, tenacity, failure and opportunity. None of those things happen overnight—despite what some may say.

15. Don't think like a business owner. Think like a customer.

Not much explanation is required here. One of the most overlooked principles when learning how to run a small business is learning to think like a customer, not just an owner. This practice can help you anticipate customer needs and meet them in delightful and unexpected ways.

16. You are your most important client every day.

You know the story about the cobbler’s children and how they have no shoes? Well, that's no way to run a business. Set time in your calendar every day to work on your business. You are your first client every day. Put it on a sticky note. Tape it to your bathroom mirror. Say it out loud. Repeat. Learning how to run a business isn't a one-time thing. It's an ongoing process that grows with you as a leader.

So, is starting a business worth it? Over 31 million small business owners would make it appear so. While there's no hard and fast formula for success, the tips above can help you make better decisions when it comes to how to run your own business and thrive instead of simply survive.

A version of this article was originally published on October 16, 2013. 

Photo: Getty Images