A Business of One is Really a Business of Many
March 24, 2011
By David Fant, chairperson of SBAM’s Strategic Communications Advisory Committee. From SBAM’s member-only Focus on Small Business magazine.
Sitting here in my home office, I got to thinking about the idea of a company of one. Working alone can be a daunting task. Basically isolated, so many distractions (television, the kitchen, the couch for a nap are just a few) that focusing can be difficult at times. I remember when I first started my business 20 years ago. My wife would come home from her work, ask how my day was and I would recount the various talk show topics of the day. Her immediate question to me was, “Are you actually doing work? ” To which I answered, “Yes, I am!” But in the beginning business is slow and prospecting is difficult-so you find distractions to fill your time.
Now, 20 years later, I find myself in a totally different world. I have clients who need the attention, vendors who need prodding to get me information I need. Marketing, accounting, client meetings, administrative work – not to mention volunteer work with the Small Business Association of Michigan, the American Marketing Association and the Advertising Federation – all take up time and energy in the day. However, I got to thinking about my business and what resources a business of one may need to have at their finger tips and came up with a daunting list of support options for a company of one.
Accountant – This person is critical to understanding your cash flow, what purchases will most positively impact your bottom line, and most importantly, your accountant can provide you with a realistic view of profitability today and in the future.
Banker – If you need a loan, or cash to build/grow your business, your banker can be your best friend. He can also help you better understand your needs for bank accounts and how to best utilize them to maximize your cash flow and minimize processing costs. In addition, your banker is in touch with hundreds of other small and large businesses and may be able to assist you in identifying new or growing markets.
Trade Associations – Meeting others is one way of getting out of the office. Networking can be the lifeblood of a business when first starting, and later on in a business life cycle you become a resource for others to turn to for advice.
Customers – Each of them can provide input regarding new products/services to sell, and they can offer ideas as to other areas you may want to expand in to. Last year, a client of mine told me about a conference I should be a sponsor for. I decided to try it and got eight new clients with gross sales over $20,000. Not bad for an investment of $2,500. Use your customers as a sounding board for new/innovative ideas.
Vendors – The number of new products in the marketplace never ceases to amaze me. Talk to your vendors, see what’s hot, what’s working and what’s not. This knowledge can help you in the long run develop new and innovative products and services.
Family – There is no one more attuned to my business than my wife. She can tell when something isn’t going well. She will listen, offer advice – she is someone who I can count on to help me talk through a problem or issue that I am having difficulty solving. An asset often over looked in a small business.
What does this all mean? A company of one is not just you. It’s you and everyone you come in contact with. Everyone has friends/family/customers/vendors/service providers who can and will help you when needed. All you need to be is open, willing to share and most importantly, be willing to ask.
David Fant is a long-term SBAM member and the chairperson of the Strategic Communications Advisory Committee.