Learn

Personal Resource Center
Back

5 Things Successful Small Businesses Do Differently

Today's most successful small businesses share several strategies. From the way the company's owner approaches the business to the way the business interacts with customers, these common threads are often found among the companies that thrive.

Here are five ways small business owners can set themselves apart from the competition.

1. Treat the business like a business from the first day

Launching a new business is a major endeavor, and creating a strong foundation early on can help you prepare to scale as you grow, while avoiding common small business problems and pitfalls. Often, this process begins by obtaining the right business license. Depending on your field, it may also mean establishing a specific type of business structure, such as an LLC or corporation.

Research the types of business insurance that you need to operate in your industry. Educate yourself on the types of tax obligations you'll have, and set money aside to pay them starting with the first payment you receive. By taking a serious approach to your business from the start, you'll be creating a business that thrives in the long term.

2. Create a differentiated value proposition

A value proposition summarizes what you offer to the market and what makes you different from the competition. When a business owner understands this, it informs every aspect of their operations from marketing to product development. Explore what sets you apart, and then identify ways to dial that up in your market outreach. Conduct a competitive analysis to understand where other companies perform well, and put your own unique offerings into context. Talk to your employees and customers to understand how they view you, and then develop a strategy that builds on your unique strengths.

Human head with dollar sign icon
What makes you different from the competition? This value proposition informs every aspect of your operations from marketing to product development.

3. Invest in understanding your customers

Understanding what your customers want and delivering on those desires is the best way to build a thriving business. According to Gartner, 81% of businesses expect to compete primarily on their customer experience.2 Understanding your customers allows you to deliver personalized customer service, which can help set you apart from your competitors. Research what your customers want by conducting market research, and talk to your customers regularly to gather their feedback.

4. Track trends in the marketplace

The pace of evolution in today's business market changes quickly. Successful businesses are tracking what's happening in their space and putting ideas in place to pivot. For example, do you track your competitors' products and services? Are new trends or service delivery models reshaping your industry? There are many ways to monitor these business aspects. Taking part in professional associations helps you meet other people in your space, while attending industry conferences and reading targeted publications can help you follow news, identify emerging opportunities, and understand how larger business trends affect your company.

5. Prioritize strong financial planning

Good financial planning and management keeps small businesses thriving. According to Score, the number one reason small businesses fail is cash flow.3 Successful businesses avoid this issue by taking concrete steps such as establishing a budget. Business owners can leverage their current sales data to create financial projections that create a strong foundation for the year ahead. Make it a priority to save; a cash cushion can help you weather storms such as recessions.

In addition, think proactively of the steps you can take to build access to credit, such as establishing your business credit score and looking at opening a line of credit.

Next steps

Ready to lay the foundation for a successful small business? Talk with a banker at Synovus. Our local bankers understand what it takes to succeed as a small business and can help you create the right foundation for long-term success. They can also walk through the numbers with you and help you determine which loans and banking services will help your small business meet its most important goals.

Important Disclosure Information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. Otar, Chad, "What Percentage of Small Businesses Fail and How Can You Avoid Being One of Them?" Forbes, published October 25, 2018, accessed September 30, 2019. Back
  2. Pemberton, Chris, "Key Findings from the Gartner Customer Experience Survey," Gartner, published March 16, 2018, accessed September 30, 2019. Back
  3. Sutter, Brian, "The Number One Reason Small Businesses Fail and How to Avoid It," Score, published June 1, 2019, accessed September 30, 2019. Back