Four ways small businesses can unlock their potential to the fullest

Starting a small business can certainly be a very scary and risky prospect. However, for those who have the passion, determination, and opportunity to venture into uncharted territory, that same journey can be incredibly rewarding. It’s no coincidence that some of the world’s most iconic brands and successful businesses have humble origins in entrepreneurship. Don’t forget, even Apple was founded in the garage of Steve Jobs’ home! 

Without a doubt, entrepreneurs are the lifeblood of the global economy, playing a crucial role in creating new jobs, sparking innovation, responding to market demands, and bringing fresh ideas to life. We only need to look at our own shores to see the impact of small businesses; over 97% of all businesses in Australia are made up of 0-19 employees. 

While small businesses hold great potential, entrepreneurs frequently find themselves on a path marked by uncertainty, bearing the weight of personal responsibility for achieving growth and success. Whether it’s the continuous refinement of business models, grappling with cash flow challenges, or facing stiff competition from well-established industry giants, the journey of managing a small business is undeniably challenging. 

Here are my tips to help pave the way for the success of your small business dream:

Embrace learning beyond your comfort zone

Entrepreneurship is a journey marked by constant evolution, making it crucial to adopt a growth mindset and a thirst for knowledge. This encourages entrepreneurs to be inspired by new ideas, often resulting in unexpected breakthroughs that fuel both personal growth and business success. 

Seek out learning opportunities, even in areas and topics that may lie outside your comfort zone. Fast-paced decision-making and strategic thinking are constant requirements when running a business and learning on an ongoing basis broadens an entrepreneur’s perspective. Whether it’s bookkeeping, budgeting, marketing, or data analytics, a commitment to professional development is fundamental to achieving success and taking you from the ‘comfort zone’ to the ‘growth zone’ in a dynamic business environment.

Make the right industry connections

Building a strong network is an indispensable tool in an entrepreneur’s handbook, helping to unlock invaluable partnerships and business expansion opportunities. By sharing expertise, you demonstrate competence within your field, potentially leading to mutually beneficial alliances with like-minded individuals. 

Founding a startup or small business requires diverse perspectives for staying ahead of the curve. Engage with peers, join associations, and attend industry events for insights and support. Networking is also not confined to physical forums — online platforms such as LinkedIn offer a number of ways to build and connect with a network.  

Continuously improve your product or service

Fewer factors define the cornerstone for small business success than outstanding products or services. It’s why your business exists and why it’s crucial to continue serving your customers at the highest level. Customer needs evolve over time, so it only makes sense that your products and services should adapt; because when gaps exist, competitors will always be ready to step in.

Achieving top-line growth requires small businesses to continuously evaluate their product beyond the launch moment. Success comes from innovating, which is why product enhancement and user testing is an ongoing process. Look for ways to add more value for your customers that you can charge for — product enhancements offer the possibility of expanding your margins, and building a more profitable business in the long run. 

Seek a second opinion about your finances

For entrepreneurs, financial literacy in fundamental concepts like cash flow is absolutely critical for survival, let alone success. Effective cash flow management stands as the cornerstone of a thriving small business.  However, recent research reveals that a staggering 60% of small businesses in Australia have grappled with cash flow disruptions.

Small businesses frequently require access to capital across various growth stages, driven by a multitude of factors such as purchasing inventory, upgrading equipment, or paying off debts. While entrepreneurs may have a reasonable grasp of their finances, it’s always wiser to seek a second opinion from a financial advisor or small business loan specialist. With additional expert insights, they can help you access the right finance products to minimise deficits and ensure your financial strategy aligns with your business goals.

As a founder myself, I’m aware of how much time, work, and investment is required to start a small business. In fact, one of the struggles I faced was accessing capital, which ironically was what inspired me to co-found Prospa. The need for capital is a perpetual challenge but through innovative funding solutions and the right guidance to overcome it, small business owners can navigate this landscape and prosper. Whether you’re just starting or have been on this journey for a while, continuously challenging yourself, building community, and the right financial tools will help unlock enormous potential. 

Beau Bertoli is the co-founder and chief revenue officer at Prospa.