25 Small Business Tips Your Mentor Never Gave You

Want to start a small business or already run one?

You've probably read or heard a few generic tips and ideas on how to run a profitable small business.

Or you probably have a mentor who's motivating you towards success in business.

Some of these generic business advice typically sound like this: “position your business right in the market”, “have a good business plan”, “customer is king”, yadda yadda yadda.

But you know what? I'm here to offer you something different.

I want to pull your ears to a few business advice that I wish I knew before starting my first business.

In fact, if I was to guide my younger self on starting a business afresh, then these small business tips would really come in handy.

I believe no one has probably told you what I'm about to tell you, even if some, but not all.

So, no matter where you are and what business you do, I believe these tips will help you make some important business decisions and find success running your own small business in your own way.

Let's get right into it.

Start with an MVP

“If you are not embarrassed by the first version of your product, you've launched too late.” - Reid Hoffman

The first advice I would give to my younger self or someone starting his first business is to start with an MVP.

An MVP (Most Valuable Product) is the simplest version of your business that is able to fulfill at least one basic customer need.

All you have to do is start with one basic product or service, and then tweak or add to it based on customer demands.

It makes absolute sense to start a business this way. Not only are you able to save time by launching quickly, you save resources by starting lean and growing the business based on customer satisfaction.

So, would you start a business based on what you think the customer wants? Or do you want to build a business informed by your customer’s feedback?

I think I'll rather go with the latter.

Have A Big Mission

“There are lots of bad reasons to start a company. But there's only one good, legitimate reason: it is to change the world” - Phil Libin

Just look around you. People are all over the place, running about, doing one thing or the other.

If you happen to ask them what's going on, you can always guess their reply. “Business.”

Most times, we relate business with busyness and we justify our actions with the time wasted running about.

So, what do you call business?

What's your goal of being in business?

How many customers have returned to appreciate your product or service?

You may have to start re-thinking your activities and start focusing on making the right impact where necessary.

There are so many people using business as a cover for their evil activities. Sadly, even fraudsters pose as business men and are bold about it.

This is possible because most business people don't really differentiate themselves from the group. If you don't publicly declare your mission and what you stand for, how then do you stand?

Go back to your plan, draft out a big but genuine mission that caters for the needs of your customer and let everyone and everything in your company begin to behave that way.

It's Okay to Start Small

“Dream big, start small. But most of all, start” - Simon Sinek

Wise businesses fight only where they have momentum or at least a chance of winning.

When starting out in business, you may want to set-up at the bargain basement with the intent on building brand loyalty through very customer-friendly prices for your products or services.

Your profits may be limited, but at least, this can help you patiently learn how the market works and how to evaluate the behaviors of your customers.

Many businesses have amassed great wealth this way, building their empire slowly and attracting a huge brand following willing to buy at any time.

You too can build something substantial but only when your price is favorable and your product is popular.

When you have the right market, you can then focus on building loyalty for your business with the right customers.

This brand loyalty then allows you to leverage the knowledge of your customers' behavior to increase your price or launch other premium products that your customers will love.

Execute New Ideas Quickly

“When you find an idea that you just can't stop thinking about, stop thinking. That's probably a good one to pursue” - Josh James

Most times, budding entrepreneurs take too much time thinking and analyzing business ideas. This is not bad in itself, but it becomes worrisome when you make thinking the goal.

Yes, a business requires deep planning and strategizing but this should not come in the way of your execution.

When you find an idea that just can't leave your mind; maybe you brood about it at bedtime or in the shower. Maybe you tend to get too many eureka moments about this idea or you just can't stop telling friends and family how awesome and brilliant that idea is.

All you have to do is leave this phase before it eludes you. Take it that you have an idea worth trying out and just start.

Let all your planning and strategizing come in only after execution so that you can know what works and what doesn't.

Pursue that idea now, lest it becomes a fantasy. Ideas are not given to you so that you can think about them. They are given to you so that you can implement them and impact lives positively around you.

Show Confidence Through Initiative

“In business, the person who is quietly confident makes the best leader” - Fred Wilson

Confidence can be of many types: loud, brash, arrogant, silly, naughty, disguised, hyper, cool and so many others. It is also one of the most misused words by many.

People call many different things confidence. Being loud and chatty in the workplace, for example, may be mistaken as confidence too. It might be a part of it, but that is not confidence on the whole.

In business, I like to relate confidence with initiative. Instead of seeing it completely as an attitude, I like to see it as an expression.

It may be an expression of your leadership abilities or an expression of your belief, so long as there's a manifestation at the end of your efforts. So, we can say that being quietly confident simply means just focusing on achieving your everyday goal. Simply that.

It is a signpost that says: Initiative at work! This is the ingredient needed to create a real impact business. If you want to be a leader with serial achievements in your business circle, then you need to be quietly confident.

Have a Can-do Spirit

“You shouldn't focus on why you can't do something. You should focus on why perhaps you can, and be one of the exceptions” - Steve Case

I hate it when someone tells me that I cannot do something or that something cannot be done. This puts me on 'action mode'. How dare you measure my capability with the limits of your belief? I take it as a life threat.

Many visions and dreams have been quenched and forgotten just by telling people that they don't have the required ability to achieve something.

It is better to kill a man than to kill his vision. We've heard of the death of countless visionaries in the past, whose visions were later taken up and run by their followers or volunteers, hundreds and thousands of years later.

You should never let cynics put off the fire that you carry. If you let another man's belief template dictate the power of your vision and the level of your ability, then you're not truly living.

Instead, when you get cynical reasons why you can't do something, focus on your strengths and believe there will always be an exception. Have the right companion that will help you keep believing, and fight till the very end

Create Your Own Luck

“Diligence is the mother of goodluck” - Benjamin Franklin

We all want success, and at all costs. Everyday we toil, plan and lick the faith candy.

Some of us even hold the belief that someday, our breakthrough will come and we will have the last laugh. Yes, but it doesn't always work out like that.

Even more heartbreaking is that there are individuals out there who crave success through luck. They nurture the belief that we all succeed in turns, and not by putting in the right efforts.

Why I worry about this mentality of total belief in luck is that luck in itself is not definite. You could either be met in the way of good luck or in the way of bad luck, depending on some other very distinct factors.

Infact, hoping entirely on luck makes you very uncertain about achieving your goals, not to mention the fact that you tend to lack the drive and initiative to do your work.

As for me, I'd like to think that luck - and good luck in particular, can be created through hard work and consistency. You can choose to think that way too.

So, instead of waiting on luck to smile on you, make it smile on you. You can force it, through diligence.

You Don't Need A Perfect Business Idea

“Even if you don't have the perfect idea to begin with, you can likely adapt” - Victoria Ransom

Ideas are ideas. Nothing more. An idea may be exciting but a business will always be demanding. Starters in business usually fall under the trap of 'wanting the perfect idea' and that stifles their execution.

You don't need to have a perfect or brilliant idea to start a business because for most of your business days, you will be working your ass out trying to prove that your idea is worth it.

Whether brilliant or not, you will be faced with the same task to make your business successful. Real business people know that even if their idea doesn't feel perfect, they can go on and make a successful business.

If you have an idea right now, you will be better off just starting right away. In business, you don't learn about how the market or customer will respond to you by having a brilliant idea. You learn that by having a functioning business.

If you can set out with the right mindset and you are willing to work hard and make corrections, then you don't have to worry about having a perfect idea. You can always work it out.

Create a Balance Between Business and Family

“Business is very engaging but you should never neglect your family for business. Always keep in touch” - Walt Disney

Your business is very important, but your family is more important. Having the right balance in your business life will help you manage yourself and the people around you.

Many people have lost family for business and many others have lost business for family. Don't be one of those. Love what you do and love where you belong.

There are not many things in this life to love or keep close to the heart, not to talk of throwing away the ones that belong to you. As a business person, do your best to spend time with your family, let them know how much you care about them and how important they are to you.

There's this unpopular belief that entrepreneurs are emotionally cold. I'd like to think instead, that entrepreneurs have a heart of their own and can choose what they want and stick to it strongly.

Entrepreneurs can choose to be caring while still remaining strong in business. You must create the right balance between business and family life by dedicating a part of your time solely to your family because when you're down in business, your family is the only next big thing you'll have. So, always keep in touch.

Test Every Aspect of Your Business

“If you're going to put your product in beta, put your business model in beta with it” - Joe Kraus

So, you're launching a new product and you want to see its performance in the market? You want to know how prospects will respond to you? Simply go beta.

Having a product or service in beta for testing your market is way more effective than running surveys and asking questions.

It helps you to actually know how your business would perform in reality. It helps you to meet real customers, make real mistakes and do corrections where necessary.

But most times, we fail to properly utilize this strategy in building a profitable business. You may test your product or service in beta but fail woefully when in actual business. This is the mistake most businesses make.

Putting your product or service in beta without knowing how your business model will perform; is no different from running a survey.

If you want a good reality check on your business, then you must set up your beta just like your actual business will be.

Know what works best in EVERY area of your business and you will see the full benefits when you launch.

Always Look At The Big Picture

“Fortunes are built during the down market and collected in the up market” - Jason Calacanis

When the economy is bad, businesses run away and investors pull out. Everyone is doubtful and scared. But do you think we should run even when needs are still to be met?

Do you think we should abandon the opportunity to solve the problems in front of us? I’m not in the affirmative.

When the market is down, common sense says the next move is up. So, do we stay down and wait for an improvement? I am not in the affirmative either.

In business, once you can solve problems, you will likely remain profitable. Shift your focus from the talk of 'the sky falling' and just solve problems.

When the market is down, put on your search light. Scan the terrain and find more problems to solve.

There will likely be more problems to solve as businesses leave and customers get stranded. This leaves a huge opportunity gap for you to capitalize on. Stay alert, the next move is up!

Don't Expect Any Guarantees

“If you're not a risk taker, you should get the hell out of business” - Ray Kroc

Do you hate being uncertain?

Do you hate risks?

If you can answer these questions truly from your heart, then you will be able to decide if business is for you.

Being scared in business is not normal. Real business men have fears though, but they act despite the fear.

Fear kills faith and paralyzes action. It takes you off balance and fills you with doubt. But when you act despite your fears, despite the uncertainty, that is courage.

If you wait for every business to be sure-thing, then there's a 99% chance that you won't start any business.

Taking risks is different from being a fool though. You have to make your plans, analyze possible outcomes, put yourself on the winning side of the risk/reward, and just plunge in.

You might hate it this way. And you might even wonder, 'why can't I just be sure about my business?' But I assure you, the only sure thing in business is failure. So, you either choose between uncertainty and failure. Think about this.

Talk to Your Customers

“Wonder what your customers really want? Ask. Don't tell” - Lisa Stone

Customers can be very complex. Today, they want this. Tomorrow, they want that.

It can be very frustrating for businesses to keep guessing what their customers really want.

Do they want portability?

Do they like the new design?

You could keep guessing for ages.

Some businesses just go out and produce what they think their customers want. They spend millions on research and product design, hoping that these would be market hits.

I've seen many of these, and sadly, 80% of the products don't perform well in the market.

As a business, I think you'll be better off asking the customer what they want rather than keep guessing, and hoping something clicks.

You have to communicate constantly with your customers and keep changing according to their wants. Afterall, without them, you are as good as no business.

So, make the customer the center of your business. Do surveys, seek their feedback and just give them what they ask for.

You'll have a more rounded business this way.

Hire the Right People

“The secret to successful hiring is this: look for people who want to change the world” - Marc Benioff

Hiring is a very critical part of any business. If you need effective personnel, you must work hard to hire the right people.

Job seekers tend to have the perfect resume but when it comes to doing the actual work, they perform way below expectation.

This inefficiency may not be a case of capacity but deployment.

What are they hired for?

Do their skills match with your business objectives?

Do they think independently?

Do they work collectively?

Do they communicate effectively?

These are some of the questions you will need to ask if you want to do your hiring right.

A simple test will be to ask them what plans they have for their future. Listen closely and carefully and you will get a real insight into their motivation and goals.

The best employees tend to align their goals with that of the company and will always be in search of bigger tasks.

They are direct, open to criticism and always strive to make an impact.

Take Your Business Very Seriously

“No more romanticizing about how cool it is to be an entrepreneur. It's a struggle to save your company's life and your own skin everyday of the week” - Spencer Fry

Most people take entrepreneurship as an escape route.

They believe you can hide under the cocoon of entrepreneurship and get guaranteed success without a job.

They pretend to be busy but stay lazy. They brag about what they can achieve but are reluctant to put in the required hard work.

If you are one of those, then I'm sorry to burst your bubble. Hello, wake up from your day-dreaming.

In entrepreneurship, you are ideally in a battle field where you either kill or be killed.

You don't brag about the battle field; you brag about your spoils. You have to fight everyday to do the right things that will move your company towards your set goal(s) or you get the spank from the competition.

This is no child's play. Lives of men and women, families and nations are involved. You need to always keep in touch with reality and focus on using what you can afford to drive your company's mission.

You have the right to talk positively and motivate yourself but then, you must also walk the talk to remain relevant and achieve business success.

Periodically Evaluate your Business

“Anything that is measured and watched, improves” - Bob parson

Business is not a day's thing. So, you better sit down tight to evaluate how you will continue to improve your business for the years to come.

You may have to make long term plans and commit to measuring growth and output on a timely basis.

Some of the ways to measure growth include watching out for market signals, evaluating customer reactions, staff KPIs, and the communication levels within and outside your business.

Most times, when you are starting out, you will likely not be certain about what works and what doesn't. But as you go on, you should be able to tell what resource provides the greatest output and profit for your business.

You don't have to do many things, just be observant and measure performances. Then simply double up on the things that work.

If you can effectively focus on resources that convert, you'll have a winning business.

Be Prepared for the Highs and Lows

“I plan to look back on my life and say wow, that was an adventure. NOT wow, I sure felt safe.” - Tom Preston-Werner

Business is like a roller-coaster ride. You need to have a desire to ride and you need to enjoy the ride no matter what.

Sure, there will be rights and wrongs, successes and failures, and even occasional disappointments. But if you have a concrete plan and stick to it, it should be well worth the effort.

On the other hand, you could choose to have a job that keeps you financially safe at least. It could provide most of your basic needs but there may be a limit on how you explore your creativity, and you may never know how much better you could do financially.

If you hate risks and uncertainty, you may as well go get a job and enjoy your safe ride. It is good for your heart and it may be the best decision that you'll ever make.

But if you're bold and adventurous, if you want more out of life, then take up your sword and let's go to war. Business is where men are made. You'll have to fight to enjoy the respect, the power, the control, the cashflow and the time to do whatever you want.

If you come prepared, stay true to yourself, and hustle hard enough to keep the business stable and growing, then you'll never regret any moment.

Stay Passionate About your Business

“If you're passionate about something and you work hard, then I think you will be successful” - Pierre Omidyar

Of course, I know you will be successful. Passion drives you more than you think. It makes hard work feel like a picnic. It makes you blind to the limits that may seem great for others. Afterall, you are simply enjoying yourself.

If you want to start a new business, make sure you are passionate enough about the business, go beyond the normal and do what others in your niche are too lazy to do. Create your unfair advantage and let your business possess you.

When you operate at this kind of level you will be hard to beat. You will be faster, bigger and more efficient.

But what makes it more interesting is that it all feels like a stroll. Passion can drive you but you must also drive common sense. Make the necessary planning and strategizing needed in your market too; as labor alone will not complete the business cycle for you.

Mark out all the functional areas of your business and seek to develop them. Think against the competition and utilize all the leverage you can find.

Find a Reliable Mentor

“Get a mentor in the applicable field if you're at all unsure of what you're looking for” - Kyle Bragger

'when the time is right, things will take their place.' This is a wrong idea to have if you want to have a successful business.

This is because starting a business is like walking along a dark path leading to anywhere.

You need a lamp, a map and a compass. You must find what you can offer, to whom, where and how you will execute your plan.

If you are just starting out in business, it will be wise to find a guide. Maybe a senior business colleague or veteran in your field of interest.

I've noticed that in business, when you have no one to report to, you tend to do things shabbily. You don't record your sales, you don't bookmark experiences or changes needed in the business or you don't just care about how your product is converting in the market.

This may be the time to find a reliable mentor that will make you responsible and true to your vision. A mentor that can help you to leverage your business by tapping from his experiences.

Having a mentor makes it look like you have a senior back-room staff working for you at no cost. This is one advantage that many new businesses miss out on. Don't be like them.

Don't Reinvent the Wheel

“An invention that is quickly accepted will turn out to be a rather trivial alteration of something that has already existed” - Edwin Land

Inventing something new is hard. You are better off creating a product that solves problems for customers.

If you find yourself asking too many questions about your product, worrying about market acceptance, or the competition, then it means that your business proposition isn't clear.

These reactions or rather, tensions are typical of people who are innovating or building a product that has never been done before. This may not be bad in itself, but it requires a truck-load of hard work and luck.

In fact, if you invent a new process or product, you will have to get ready to worry about more issues such as patents, copyrights and copycats.

But if you want a business that does not require too much sweat to be accepted in the market, then you don't need to reinvent the wheel. Just find an area of pain and solve the problem for the customer.

Many business products and services today, surprisingly have deficiencies in very simple areas such as customer care, branding, and marketing.

You could find businesses around and check up what they are not doing effectively and that could be a profitable market for you.

Focus on Positive Cash Flow, NOT Perfection

“You only have to do a few things right in your business so long as you don't do too many things wrong” - Warren Buffett

Business people are busy people. Of course, that's why they are in business. But do you have a clue of what's going right or wrong in your business?

Many times, you focus on making your business perfect and want to be certain about how your business will progress or turn out - your way. This is often a wrong strategy.

You have to start learning how to thrive in different situations because you may never find that certainty in business or be sure how things will play out.

This is business and all you have to do is balance the wrongs vs the rights and balance the profits vs the losses. That is why businesses use balance sheets.

When comparing the two sides of an outcome in business, the majority wins. So, if you want to make more profits, try to lower the frequency of your wrongs against your rights instead of trying to create perfection all the time.

No matter how small your wins are, as long as they are more significant than the losses, you will always achieve a positive cash flow.

Follow this pattern and you will have a winning business.

Work Hard for What you Deserve

“Never wish for good things if you are not willing to work hard to get them.” - Ceejay

Wishful thinking feeds the lazy part of you and makes you have an entitlement mentality.

Be intentional about crafting your goals and working hard to achieve them each day. The more you work superbly to cover each day, the closer you will be to your dreams.

Next is to make a shift in mindset from being overly optimistic to being realistic. Evaluate your chances of success in every endeavor before committing resources.

You must be quick to notice false opportunities that tend to waste your time and resources, and discard them.

Find the right team and explore opportunities you think you are qualified to execute.

Forget about titles, it feeds your ego and creates rivalry among your business team. Instead, share responsibility and work together to create shared prosperity.

Apply your Creativity in Difficult Times

“When the going gets tough, the tough gets creative” - Ceejay

Yes, life is not a bed of roses. You will get to understand that firsthand when you start a business.

There are usually many ways different people respond to different difficult situations and that is all it takes.

So, how do you respond when things don't go your way? How do you make sure you handle a difficult task effectively? Get creative!

Creativity is simply trying to implement your ideas using resources that are available to you.

Creative people try to get the result they want irrespective of the situation they find themselves in.

So, when you are in a situation that seems difficult, try to think of possible ways you can implement your ideas using the resources available to you.

Think outside the norm, think outside the box. Turn your difficulty to creativity.

Stay Grounded, Stay Realistic

"when you realize that business is hard work, you will have a happier life" - Ceejay

You have to get up to the fact that every business will require hard work to make it work. So, you have to put in reasonable effort both in human and capital resources if you want to find any success.

Keep a check on your results and record the business activities that yield the most results.

Any business person willing to succeed at what they do must have a realistic idea of how their business will turn out.

If you allow fantasy to settle in, then there's even a bigger chance that laziness will overcome you.

Business is business and you should treat it as such. Get the right team, have a plan, set achievable goals and push yourself to deliver by all means.

It may take a while to see any positive result but time and chance will be needed. You must know that the greatest trait of any business person is patience.

Patience allows you to see the business exactly as it is. It allows you to keep your expectations in check and to record business growth as it comes, step by step.

So, put your heart in your business and treat it exactly like what it is — a business. When you offer something of value as a business, make sure you demand your price.

It’s a pity that a lot of people today treat business as a party or a charitable organization. They work so hard and long to provide a valuable product or service to end users, they make substantial expenses to finalize a business project for the benefit of the end users. Yet, they get nothing in return.

Did you realize that in the sentence above, I used end users instead of customers?

When you run your business like a charitable organization, you don't get customers. You get end users - and they would likely never pay you a dime!

With time, you will realize that you don't have enough free money to continue running the business and you will pack up, letting your business be among the more than 1 million small businesses that die every year, all because of running your business poorly.

Treat your business as a business and it will treat you as a business owner in return. Mark that in your bank account.

Have an Exit Strategy

“Ideally, the exit strategy should be agreed upon by the founders before the first dollar of investment goes into the company.” - Basil Peters

The worst mentality to take into business is to think that you'll always be in business. In my opinion, business comes and goes, but the entrepreneur remains.

You have to think of several possible outcomes that could play out once you launch your small business.

What if the business is harder than you thought and doesn't work out?

What if you became lucky enough to achieve an unimaginable level of success within a very short time?

What if you get a substantial acquisition offer from a major competitor that X50 your startup costs?

Just about anything could happen, so it makes sense to have an exit strategy. Just like a financial trader, you should be able to exit a business either with a stop loss or a take profit.

The smartest entrepreneurs I know don't sit on their losses, and they don't walk out on profitable business deals either.

So, why would you?

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