How To Expand Self-Employment Into The Successful Small Business Of Your Dreams

‘Self-employed’ is the term given to individuals who act as independent contractors or sole traders to operate their businesses. But starting your own business means more than just being your own boss. It involves setting up a registered firm, getting an ABN, and conducting your affairs through a company, rather than your own name.

Before embarking on the venture of starting your own business, it’s imperative to fully assess whether you’re prepared. Once your company begins to expand and you hire employees, your mindset must transition from self-employed to small business owner if it’s to succeed. Being proactive about this transition can only ensure greater success for any small enterprise.

In this article, we’re going to consider how to expand self-employment into the successful small business of your dreams, with our 8 tips on just that.

What makes a business successful?

Profits are generated by successful businesses through the sale of goods and services, but each owner defines success differently based on their goals and values. Some business owners deem their company successful if it has expanded without incurring debt; while others may view taking on debt as necessary in developing their brand globally. Key performance indicators (KPIs) go beyond profits, to measure customer loyalty and web traffic levels, which may be other criteria that factor into your personal definition.

Scaling a small business efficiently and effectively can be challenging, requiring strategic thought, and effort from various areas of your organisation. Here are some top tips to ensure your small company meets its growth targets.

1. Determine your mission

What is your goal as a business? 

Is it to provide customers with exceptional services, or products at low costs? To be more environmentally friendly, or create new jobs in your community? Whatever it may be, successful businesses all have a mission statement that serves as their roadmap towards becoming profitable enterprises. Be sure to revisit yours periodically to make sure everything stays on course, and to adapt it if you find your values changing.

2. Conduct market research

Start by conducting a market analysis on your chosen location, with particular attention paid to the clients and customers in your industry. Using this information, decide whether it’s worth investing time, money and effort into developing a larger-scale enterprise. Make sure that something special sets you apart from competitors to remain viable in the market.

3. Build strong relationships

Positive business relationship management (BRM) plays an essential role in managing risks for businesses, by helping ensure an enterprise can weather any challenges which come their way.

BRM allows a business to seamlessly integrate with its clients, stakeholders, and partners. It encourages organisations to go beyond transactional exchanges and instead focus on cultivating partnerships that generate real value.

It helps businesses align resources, track journeys toward business success and assess the potential for future growth. Businesses can transform their future by improving communication, connecting silos, and bridging customer needs with business goals.

4. Consider your marketing strategies

Marketing is essential to charting out your business journey. Implementing multiple marketing strategies – ranging from paid Google ads to social media campaigns to SEO content – can strengthen brand recognition, which in turn is one of the primary drivers of sales. 

A small business owner may act as de facto director of marketing initially as they try to save money, however hiring an outside marketing consultant is an invaluable way of creating an actionable marketing plan.

5. Stay on top of cash flow and budgeting

Small business owners need to have an accurate view of their money flows despite daily fluctuations. Accurately predicting and managing cash inflows and outflows is crucial. Set up an accounting system using one of the many available software solutions. 

Monitor cash flow by closely following expenses through analysis. Cash flow monitoring provides essential knowledge about whether there are enough funds for daily operations and growth, as well as highlighting cost reduction opportunities.

6. Risk evaluation and administration

As part of any self-employment endeavour, conducting a risk analysis and taking measures to mitigate the associated dangers is paramount. Recognize all threats and create strategies to deal with them effectively, including comprehensive business insurance and cybersecurity protection.

Entrepreneurs must ensure they have enough funds saved up in case of unexpected events or accidents, to cover them should anything arise that threatens the success of their venture. This could be a dip in sales, a national economic downturn, or any physical damage to your store or goods.

Insurance can provide invaluable protection and help when needed. Consulting firms and insurance providers offer assistance for self-employed people seeking coverage tailored specifically for their industry, as well as providing effective risk mitigation strategies.

7. Invest in team culture

When you first start hiring people for your workforce, whether employees, interns, contractors or freelancers, all will help you succeed and potentially even expand your business goals. That’s why it’s important to make sure you invest in the right colleagues, especially at the beginning stages when you might only be able to afford to take on one or two extra people.

Naturally, this follows the kind of culture you want to develop in your workplace. Even if your business will be primarily in the digital sphere, you can still foster a collaborative, culturally inclusive working atmosphere. Make sure your team members feel valued, and they will stick around for longer, minimising disruption in staff turnover, and fostering deeper relationships within the team and with your customers or clients.

8. Analyse your strategy (& keep improving it)

Effective strategy measurement is of vital importance. If implementing a loyalty program fails to improve customer retention, adjustments might be necessary. Engaging regularly with your customers via CRM tools, email campaigns or social media may be an effective solution.

Whatever strategy you decide to implement, monitoring its progress will ultimately dictate whether or not it’s working; and from there, you can decide what action to take to keep things moving in the right direction.

Final Thoughts

Planning for the future can be exciting. Take your time in following these tips as you prepare to expand, to ensure a prosperous business in years to come.

From defining your initial mission statement to continuously monitoring and adapting your customer retention and growth strategies, every step of the way needs to be carefully planned on your journey to developing the successful small business of your dreams. But with hard work, perseverance, and just a little bit of luck, you can do it.