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These Factors Are Crucial for Small-Business Success

crucial_elements_small_business_successStarting a business carries with it a certain degree of risk, but there are actions small-business owners can take to minimize that risk and increase their business’s potential to find success. What are some central factors that improve a business’s odds of making it?

Advance Research

Most entrepreneurs would not consider starting a new business that they did not think had great potential. But what if the general public does not agree with their assessment? Conducting market research can help prospective entrepreneurs more accurately gauge a business idea’s true potential.

A Solid Business Plan

Creating a solid business plan is an essential part of starting a new business, and keeping it updated throughout the life of the business is every bit as important. The process of creating a business plan can help business owners uncover and remedy fatal flaws long before the business opens its doors. This is certainly preferable to finding out about them through trial and error. Not only that, but potential lenders are more likely to grant loans to businesses with well-constructed business plans.

Excellent Business Credit

Small-business owners who take the time to build business credit will find that the rewards are worth the effort. Good business credit grants access to extra capital when it is needed, and lowers the cost of borrowing. In addition, business credit protects business owners’ personal assets from liability. It also enhances the business’s reputation in the eyes of potential partners, and makes the business more valuable to prospective buyers.

A Good Location

Where a business is located can have a major effect on its profitability. For example, high-end jewelers located in areas often frequented by those with expensive tastes and the spare money to indulge them should have no trouble attracting business, assuming their marketing is effective. On the other hand, opening a talent agency far from any show-business hub would likely be far less lucrative.

A Respectable Reputation

A strong business business credit profile certainly enhances a business’s reputation, but there are other important factors, as well. The manner in which a business handles customer complaints goes a long way toward establishing trust among its clients. Conducting one’s business in an ethical manner might not have a huge impact on a business’s reputation, but doing the opposite certainly will.

Business owners who establish themselves as experts through blogging, seminars, or social media will enhance their business’s standing among potential clients. Donating time or resources to charitable causes, especially those related in some way to the nature of the business, is also a smart way to improve a business’s reputation.


John R. Klaras is a serial entrepreneur and small business professional, a writer, and an educator by trade. With nearly a decade of experience in the telecommunications industry, he is currently in the process of building a burgeoning new microbusiness. He has written for leading companies in a wide variety of verticals, including travel, finance, motorsports, and real estate.