When starting a business, many people overlook the fact that the first three years of operation will likely be a loss. This time period is viewed as the initial investment made. However, just because the business shows a loss on the books doesn’t mean it’s not making money. Many forget; the business owner’s income is included in the expenses of the business. Increasing this business expense should be toward the top of every owner’s priority list. After the business is established you should immediately attempting to expand, even if only slightly. Lost business or customer attrition can easily be replaced with newly attained customers. But growing a small business is the same as anything; you get what you put in.

As a general standard, any business with gross revenue under $1 million is considered a small business. If your small business will be the primary source of income, you’ve already established a commitment to its success and likely have invested a lot of time and money toward this endeavor. A little more time and money is required to grow the business.

Set and Reset Goals

A critical element to promote business growth is goal setting. Setting goals allows a business the opportunity to analyze the factors which impact the goal and plan the necessary steps to achieve it. An often overlooked aspect to goal setting is what to do after the goal is accomplished. Once the objective is achieved, don’t forget the importance of dissecting the steps taken to accomplish it. The next step should be setting another goal.

The value of determining where or what the next target is cannot be overstated. Plan what to do once a goal is achieved. A strong, growing business continually sets goals. As each goal is reached, they reevaluate where the next one should be and keep moving the bar of success.

Market

Effective marketing indentifies the business’s core demographic and focuses the majority of the marketing efforts towards this group. This marketing is what a business owner has direct control over. Truly effective marketing is done day in and day out, making a great impression on your customers. As far as advertisement, word-of-mouth advertising is unquestionably the most effective. Fliers spread in a neighborhood reach a relatively general demographic, limited by geographically. Radio ads are limited in range and listenership, and again hit a general demographic, not necessarily who you want to target.

Reinvest

A portion of the business’s gross income should be set aside to reinvest into the company, whether it’s marketing, equipment maintenance, additional operating cash, or a safety stash. The biggest return will likely come from reinvesting additional money into marketing and the subsequent advertising. However, there will be no greater advertiser than the person or people with the most vested in the business. The driving force behind the success of any company is the owner. As an entrepreneur, you must be an integral part of the business for it to become prosperous. Hiring someone as passionate as you are about your company should not be possible. Your drive and ambition is what will take the business to the next level.

Justin writes business tips and how-to found and market a business on behalf of Kwikkerb. He also provides information on the Kwikkerb business opportunity.