How to Run a Successful Small Business, Part 1

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hi my name is Brian Silverthorne I'm a

business coach and I'm making this video

specifically for those people who are

responsible for the success of a small

business so that's for business owners

in two categories those owners that want

to grow their businesses and increase

the profits consistently and those

owners who might be getting their

businesses ready for sales so they can

make them more valuable in the

marketplace it's also for managers and

executives who are fully or partially

responsible for the success of a

business and it could be for those

people who are considering buying a

small business or starting a small

business now I've been a big fan of

small businesses since I was very young

I first my first jobs were in small

businesses the local delicatessen the

auto parts store the sporting goods

store now I did have an opportunity to

work for bigger businesses and factories

the money was great there but didn't

like the politics that well I liked the

small business aspect and small

businesses quite frankly are the

backbone of this economy and if we're

going to keep this economy chugging

along and get it growing we need more

small businesses and we need successful

small businesses as a matter of fact

small businesses employ more than half

of the total workforce in this country

so if you back out the government

employs government agency employees they

probably employ they probably employ

about seventy to seventy-five percent of

the of the private sector workforce they

contribute about half of the gross

domestic product here in the United

States and in addition small businesses

and small business owners have a very

high level of trust in all the surveys

in the consuming public so small

businesses are the key to our success

now they're the key to our success as we

go on into the future and there's a way

to make sure that your small business is

running well structured well and growing

consistently and by the way if you're

curious about why I'm making this video

in this beautiful gazebo that's right in

the middle of a vineyard and a winery

I'll tell you more about that as we get

toward the end of this video so right

now let's get

started on all the pieces and parts that

go into making a very successful small

business before I get started talking

about the information on this flip chart

here I want to tell you a little bit

more about my experience with small

businesses as I mentioned when I was

going to high school in college I worked

for small businesses but as life

progressed I had the opportunity to

manage a small business for an absentee

owner I also worked as a salesperson and

a sales manager for a small business I

also started and grew a small business

of my own very successfully and for the

past 20 years I've been working as a

coach and consultant with employers who

had anywhere from five to a few thousand

employees so I've been fully entrenched

in the small business market and as I

said early on I love small businesses we

need more successful small businesses so

I started out by talking to business

owners just randomly and also those that

I worked with and said okay you have a

small business why did you decide to go

into a small business or what do you

want the small business to accomplish

for you and everything that they told me

fit into one of these four categories

one is freedom they maybe wanted the

freedom to do the work that they were

doing for somebody else in their own way

they wanted the freedom to spend time

with their families they wanted the

freedom to explore other things in their

lives and make their own decisions but

they wanted freedom secondly they wanted

a sense of accomplishment they may want

to build that business so that their

family can carry it on or so that it

makes the mark in the community or so

that it can be a valuable asset to sell

going on down the road but they wanted

to accomplish something important to

them thirdly they wanted some money they

wanted to be responsible for their own

income so that they could enjoy the

freedoms they hope to to create and do

other things travel spend time with

family whatever it might happen to be

and thirdly they wanted the whole thing

to be fun if you're going to do all this

if you're going to work hard and you're

going to express your freedoms and make

accomplishments and earn money it's much

better if you're having a good time

doing it so they wanted fun

fortunate circumstances most of the

business owners I talked to agreed that

this is what they wanted but very few of

them accomplished all four of these and

the primary reason is because building a

business is a specific skill set and

they had not either had the time or made

the time or had the money so that they

could learn and because of that they

were kind of like driving a car that's

not tuned up very well it spits in its

butters and you got to have periodic

maintenance and you get where you're

going but it's not a very fun drive and

it takes you much longer than you should

so what I'm going to talk to as I said

before today is about the pieces and

parts that go together to make a

smooth-running business that you can

operate and have freedom accomplish

things make money and have fun in the


so what do you need in general to do to

accomplish these four things well you

have to have efficient and effective

operations and we're going to talk about

how you get each and one of these each

and every one of these as we go you got

to have consistently increasing profits

you've got to have growth nothing is

static usually you either are shrinking

or growing and you have to have quick

and accurate response to the market if

it changes like right now our market

just changed drastically in the last

couple of years those businesses that

were prepared did much better than those

that weren't so that's where we're going

to get started everything I talked to I

talked to you about here from this point

forward will be to help you accomplish

these four things so you can achieve

these things as a business owner so stay

tuned alright as I mentioned there are a

lot of pieces and parts that go into

building a good small business but if

you're a small business employer your

employees are probably your biggest

expense they're also your biggest asset

they could be your biggest source of

frustration and even though they have

all those three components they are the

number one key to your success your

employees are the people that touch

everybody else that you do business with

internally and externally and how well


interactions go are going to greatly

affect the success of your business so

to have a successful business as it

relates to your employees your employees

need to be happy they need to look

forward to coming to work they need to

enjoy what they're doing they need to

care about the business that you're in

and the products and services that you

offer they need to be happy doing their

jobs they need to be productive there

are some statistics that show that the

average American worker only works to 50

or 60 percent of his or her capacity and

there are reasons for that and it

doesn't really have anything to do with

the intelligent or skill of the employee

but we'll get into those things also

they need to want to actually want to

help your business be successful that

means that they're going to contribute

much more positively and much more

consistently they need to want to help

you grow and succeed and it all boils

down to fit you've got to get the right

people that fit with what you have to

offer and how you offer it and how you

operate your business every day so we're

going to take a look at next at how you

make sure you get employees that fit

well with your business okay so how do

we find employees that fit well with

your business those that are going to

contribute to your success well it all

boils down to the recruiting and hiring

process now to make this process very

effective takes a little time and

preparation but once you have it done

it's done

and believe me based on the

conversations that I've had with

business owners hiring the wrong person

can be a very expensive and very

frustrating process both during the

hiring process and on into the work

environment so you want to make sure you

do it right the first time or at least

maximize your potential of doing it

right the first time so what are the

things that need to be considered well

in the interview process you're going to

have to talk about how well they fit so

they need to fit the job requirements

the specific duties and responsibilities

and results that you expect the person

you're hiring to produce they also have

to be a good match with the purpose of

your business why are you in business

other than making money what do you want

to a con

what do you see for your business going

in the future they got to be a good fit

with that they also have to fit the

values and the principles and the

standards that guide your business so

they know if they're doing something

right or they're doing something wrong

or they're doing something your way they

need to be a good fit with that you also

have to have a management style that

focuses on things that help people

become successful as individuals because

the greater the individual success the

greater the business success if you have

people that are successful on their own

within a business they're going to

contribute to the success of your

business and remember these are the

people that want to help you become

successful so you got to have a

management style that teaches that

coaches that can mentor with it's needed

that can help the people grow as

individuals and can guide them in the

process of doing their work so these are

all the things that you've got to think

about and put together when you're

designing a recruiting and hiring

process that's it for part one lots of

great stuff but there's more be sure to

check out part two