Let me start where I usually end: “Best of luck with your American dream. I’m in awe of what you do on a daily basis to serve your customers, employ your staff, and put food on your table. Go get ‘em!”
In my previous blogs, I used this closing as my signature signoff. While it did serve a utilitarian function to end the blog on a sincere note, you must know that it truly is my heartfelt sentiment to any individual (or partnership) who has a calling to run a small business.
Even though I work for the proverbial “man” in a corporate role, I’ve had several chances to peek behind the curtain and see what it takes to run a small business. More often than not, I’ve found myself closing that curtain quickly, thinking, “Wow, how do they do this? How do they maintain their sanity? Who would willingly choose to run a small business over a stable corporate job? Why do people continue to open and run small businesses?”
For this blog, I thought I’d start by exploring the “why.” What drives small business owners to take on the challenges, risks, and responsibilities inherent in running these businesses? After reflecting on the question, I kept returning to the descriptor I used above. It’s “a calling.” A very deep answer to a very open-ended question. But what does that really mean – “it’s a calling?”
So, I did what all the kids these days are doing: I turned to ChatGPT for answers:
You
What does it mean when someone says, “It’s my calling?”
ChatGPT
When someone says, “It’s my calling,” they’re typically referring to a deep sense of purpose or vocation in life. It suggests that they feel strongly drawn to a particular activity, profession, or way of life because they believe it aligns with their values, passions, and talents. Essentially, it’s about feeling a strong inner compulsion or conviction that a specific path or pursuit is what they are meant to do or contribute to the world. It goes beyond just a job or a hobby; it’s something they feel called to do on a fundamental level.
Damn, that ChatGPT is crazy good! It nailed it. It’s essentially saying that running a small business isn’t just a job; it’s a vocation, a purpose-driven pursuit rooted in passion and conviction. Yes, it is!
But here’s where things get interesting. If running a small business is indeed a calling, then this means a vast number of operators in the small business community made a major life decision and took on a considerable financial burden based on their heart or a gut feeling rather than using analytical decision-making and proven operational models. This is not to say small business owners don’t conduct research or write business plans, but for many, the gut instinct to pursue their vision outweighs meticulous risk assessment. And you know what? That’s OK!
There’s immense power in leading a business from the heart. The creativity and imagination that shape unique products, services, and customer experiences can’t be taught in a classroom or through a YouTube video. They come from your passion, and that passion is the DNA of your business.
But there’s also a downside to this heart-first approach. Tasks like accounting, inventory control, and cost management (crucial for profitability) don’t always come naturally to heart-led operators. These skills can be learned, of course. But this learned knowledge and wisdom comes with a degree from the school of hard knocks. It often starts with headaches and heartburn, and it ends with heartaches and heartbreaks.
Key Observations and Strategies
For the second half of the blog, I thought I would share my opinions and observations on five key strategies that may help heart-led small business operators balance their passion for the business with the practicality of real-world situations to succeed in their ventures. Let’s dive into them.
1) Treat Your Business Like Your First-Born Child
The first day you turned on that “Open” sign, you brought a two thousand pound, ten thousand square foot baby into this world. It’s yours to feed and nurture for the next eighteen-plus years. And true to the metaphor, in the first few years, there will be a bunch of dirty diapers: the challenges of establishing operations, building a reliable customer base, and managing the financial aspects of the business. But over time, your “child” grows. Operations stabilize, sales become more consistent, and profits begin to emerge. Life is good!
It’s at this stage, when the business begins to “walk on its own,” that some owners start to disengage. They delegate more, take long vacations, and trust their staff to handle the day-to-day business operations.
And while it’s essential to recharge, being physically and mentally present in your business remains a critical responsibility in your small business world. You’re the only one who notices subtle shifts in customer behavior or operational inefficiencies that others might overlook. Staying engaged in the business allows you to adapt to challenges before they escalate into problems.
2) Pick a Lane and Own It
Some of the world’s most iconic companies (Apple, Nike, Starbucks, Tesla) began as small businesses with a laser-focused vision. They excelled at doing one thing exceptionally well before expanding to other services and offerings.
As a small business owner, it’s tempting to diversify too early. While growth and evolution are necessary for longevity, adding new products or services can dilute your brand or offering if they don’t align with your core mission. Successful operators ask themselves: Does this align with my original vision? Will it enhance or detract from my business identity?
Stay true to what makes your business unique, and expansion will happen naturally.
3) Invest in Talent
Your employees are the lifeblood of your business. Hiring the right people is just the first step; investing in their development is where the magic of delivering your vision of the ideal customer experience happens.
Training should go beyond simply listing the tasks or skills required to perform in the role. Invest your time articulating your expectations for performance, providing examples of performance, providing feedback on performance, and celebrating successful executions of the desired skill.
This hands-on approach ensures consistency and creates a culture of excellence. More importantly, investing your time today to train and provide feedback will pay dividends for you and your customers long into the future.
4) Keep an Eye on Expenses
The devil isn’t just in the details – it’s in your expenses. Cost management is one of the most significant predictors of business success, yet heart-led operators often overlook it. But don’t worry; there’s an app for that.
In today’s digital age, technology can automate everyday business management tasks – if not make them more manageable for busy operators. As an example, Fintech’s app can give you highly accurate alcohol cost information. This data can then be automatically aggregated and synthesized with your POS and inventory applications to output insights on the alcohol program’s profitability, theft, ordering behaviors, and dead stock.
Cost management solutions like Fintech can monitor expenses and free up your time to focus on strategy and customer experiences.
5) Always Ask Questions
Curiosity is a hallmark of successful entrepreneurs. Whether your business is thriving or facing challenges, asking questions can spark innovation and growth.
- Ask your customers: What do you love about us? What could we do better?
- Ask your employees: What’s working well? Where do you see room for improvement?
- Ask your vendors: Are there emerging trends we should explore?
The answers might lead to your next great idea—or help you avoid a costly misstep. Keep an open mind, park your ego, and be willing to learn from anyone willing to share insights.
Running a small business is not for the faint of heart. It requires equal parts passion and perseverance, vision and vigilance. The most successful operators embrace the calling, lead with their hearts, and balance it with the discipline to manage the nuts and bolts of their operations.
Best of luck with your American dream. I’m in awe of what you do on a daily basis to serve your customers, employ your staff, and put food on your table. Go get ‘em!
