There is a lot we can learn from other small business owners.

I recently shared six key considerations for matching business skills with the complexity of a business. Then I shared advice from Heidi Gibson of The American Grilled Cheese Kitchen.  Now, here is some advice from another successful small business owner…

Rachel Saunders
Blue Chair Fruit

Rachel Saunders would describe herself as a complete neophyte when she started Blue Chair Fruit.  But, “what I lacked in experience, I had in determination.  Also, I had several bosses who were terrible managers and their negative examples helped orient me towards how I did NOT want to be!”

As Rachel’s business grew she realized that she had to pay attention to her business structure.  Instead of thinking about her business just in terms of herself or the people who worked for her at the moment, she started to focus on key roles and how they functioned together to support the business.  “Once I was able to step back and look at the staffing structure of my business, I was able to manage in a way that made more sense.”

Learning how to stream-line the business’ operations in general was also an important learning for Rachel.  “Big corporations can afford to have extra staff or waste, but a small or micro business cannot!  Over time, I was able to streamline things dramatically.  A leaner business is a stronger business, as long as everything is getting done!”

At one point Blue Chair Fruit Company was selling at eight farmers’ markets a week.  This was great exposure but ultimately not the most profitable sales channel.  “I realized that selling more product through a wholesale distributor, despite the lower profit margin, was actually a much cleaner, easier way to do business.  Since we scaled down to our three best farmers’ markets, our bottom line has improved!”

Rachel’s advice for success:

Take a step back and ask yourself if everything you are doing in your business is really necessary.

Determine what is actually working and worth the effort.  Scaling up is not always the answer.  Sometimes your business should be scaled back to increase profitability.  Look at your staffing.  Be clear about when and where you need the help.  How can jobs be structured to maximize efficiency?

Keep track and analyze your data.

Understand what activities lead to better returns.  Don’t commit yourself to a sales channel where you aren’t making any money.  Exposure alone isn’t good enough!

For Rachel and many other small business owners, business growth isn’t just about getting bigger.  It’s about developing the right business model and scale for success.  What does business success mean to you?

Check out Heidi Gibson’s advice for small business owners and my six tips for matching business skills to business complexity.

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