Common Sense = Key to Success

Many childhood lessons are applicable to owning and operating a small business. However, it appears that not enough common sense makes its way into business practice. Marketing is about standing out in a flurry of consumer choices. It is about becoming a destination in what has turned out to be a very volatile and recessionary business environment. Marketing is extremely important during a recession. Often, entrepreneurs wait for the world to beat a path to their door. This is the old "mousetrap" approach, based on the belief that if you have a better product, the world will beat a path to your door. But that doesn't apply in the real world. It is important to take your business and your ideas to the world.

In an effort to save money it is easy to try to do everything yourself, and that is where small businesses drop the ball. Larger firms have the resources to delegate tasks to other employees, consultants or subcontractors, while smaller firms do not. The ability to delegate responsibilities to qualified people gives a firm a tremendous advantage. The firm runs more professionally and there is less waste as jobs are done quickly and correctly. What tends to happen in a small business, where the owner does almost everything, is that jobs are not necessarily done well. Sometimes taking shortcuts to save money results in more waste and may even cost more in the long run.

Why do small business owners get themselves into such tough spots? One reason may be their psychological makeup. Entrepreneurs tend to be go-getters who like a challenge and who are not terribly afraid of risk. The entrepreneurial persona does not readily identify limitations, whether personal or professional. When the business idea takes over, common sense may take a back seat. Many entrepreneurs hear negative feedback from family and friends when they tell them about their business plans. Rather than fighting negative feedback, it would be wise to re-examine the business plan.

• Is there room for improvement?
  
• Do others' recommendations ring true?
  
• Do they make sense?
  

Common sense is critical in business. Today's business environment is highly volatile. Small businesses will be pounded by loss of consumer confidence, tighter finances and declining sales. It is time to keep your eye on the ball, and to remember to show up in the marketplace in a decisive and confident way.